MYMONEYMYRIGHTS

in association with

At the Citizenship Foundation weare passionate about enablingindividuals to engage in society, toplay their part and to make acontribution. This booklet -developed from our awardwinning Young Citizen's Passport,and produced in partnership withAbbey – provides a practical guideto financial and economic issues.Having a grasp of our economicand financial rights andresponsibilities has never beenmore important. It is vital tobuilding a broader understandingof the world around us, and tolaying the foundations for greaterparticipation and better decision-making or, as we put it, effectivecitizenship.

Tony Breslin, Chief Executive,Citizenship Foundation

Whether you’re heading foruniversity or college, or looking fora job we hope that you find “MyMoney, My Rights” a useful guideto organising your finances andmanaging your budget. As a bankwe recognise the importance ofproviding financial informationwhich will enable people to makeinformed choices about how theymanage their money. Abbey iscommitted to promoting financialawareness through educationalprogrammes and is keen tosupport organisations such as theCitizenship Foundation thatencourage people to becomeresponsible citizens and play anactive role in their communities.

Sheralee Morris,Abbey Community Relations

CONTENTS

BANKS ANDBUILDING

SOCIETIES

SPENDING

STUDENTFINANCE

CONTACTS

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The Citizenship Foundation would like to thank Hodder, the Law Society andeveryone involved in the Young Citizen’s Passport for their continued support.

Tony Thorpe,Editor and main author

In preparation of this edition we would like to thank Michael Smeaton, EllyHarrowell, Don Rowe and Ruth Cohen from the Citizenship Foundation andSheralee Morris from Abbey.

Designed and Illustrated by Nomad Graphique

All rights reserved. No part of this publication may be reproduced or transmitted inany form or by any means, electronic or mechanical, including photocopying,recording, or any information storage or retrieval system, without permission inwriting from the publisher or under license from the Copyright Licensing AgencyLimited. Further details of such licenses (for reprographic reproduction) may beobtained from the Copyright Licensing Agency Limited, Saffron House, 6-10 KirbyStreet, London EC1N 8TS.

Printed in Trento for Hodder Education, a division of Hodder Headline, 338 EustonRoad, London NW1 3BH

ISBN 9780340991121Copyright © 2008 by the Citizenship Foundation

BANKS ANDBUILDINGSOCIETIES

OPENING ANACCOUNT

CREDIT

BORROWING

INSURANCE

TAX

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• many employers will only paywages into an account;

• an account is needed for astudent loan;

• the money can earn interest;• regular accounts come with acheque book and card to payfor things;

• you can pay cheques otherpeople give you into anaccount.

Always read the small print. You willprobably want to know:• whether it has a branch nearyou and offers on-line banking;

• whether there are convenientcash points;

• about services offered andcharges;

• what interest is paid on themoney in your account. Therewill be leaflets on this, or youcan ask a member of staff; and

• about special offers for youngpeople.

Don’t be persuaded by offers or gifts ifthe services and charges are not asgood as other banks or buildingsocieties.

Words they use

Overdraft – An overdraft allows youto spend more money than youactually have in your bank account.However, if you haven’t agreed thiswith your bank you could becharged for using your overdraft.

Interest – This can be a reward forsaving money, or a charge forborrowing money, and is paid as apercentage called the interest rate.

Debit – Debit means the withdrawalof money from an account.

Credit – Credit is when you paymoney into an account. If you buysomething ‘on credit’, it meanssomeone has lent you themoney to pay for it.

Credit rating – Shops andagencies use this score todecide whether to lend youmoney.

Bounced cheque – If a bankrefuses to pay a chequebecause the personwho wrote it doesn’thave enough moneyto pay for it, this isknown as a‘bounced cheque’.

OPENING AN ACCOUNTAlthough there is no minimum legal age for someone to have a bank account,most banks offer basic accounts to young people aged eleven and over.Theseprovide a cash card, which you can use at a bank machine to withdraw cash,and possibly a debit card that will only work if there’s enough money in youraccount.A regular current account is normally available only if you are 18 orover, or 16 or 17 with a steady income, or, an adult to act as guarantor.

BANKS AND BUILDING SOCIETIES

£ Why have an account?

£ Choosing a bankor building society

PAGE 4

There are two main types of accounts– current accounts and savingsaccounts.

A current account is for day-to-daytransactions. You pay in money, such asyour wages or student loan, which youcan draw out as you please. If you are18 or over, you usually get a chequebook and a cheque guarantee card,which allows you to pay for, and takeaway, things with a signed cheque.You’ll receive a regular bank statement– usually every month – showing theamounts that have been paid in andwithdrawn from your account and youroverall balance.

A cheque book contains a number ofcheques with your name on. Theperson you give a cheque to pays itinto their bank account, and after a fewdays the money is taken (debited)from your account and added (orcredited) to theirs. If you haven’t gotenough money in your current accountto cover the value of the cheque youhave written, the bank may refuse tohonour your cheque and it will bounce.You may also be given a cheque

guarantee card. This guarantees thatthe bank will pay your cheque up tothe amount stated on the card –

usually £50 or £100. If there isn’tenough money in your account

to cover the value of the cheques youhave written with your chequeguarantee card, you’ll go overdrawnand may have to pay bank charges andinterest. Strictly speaking, it is an offenceto write a cheque when you knowthere is not enough money in youraccount to cover it, unless you have thepermission of your bank to do so. Don’tkeep your cheque book and guaranteecard together – if they are stolen thismakes it easier to defraud you.

These allow you to take money out ofyour current account from a cashmachine, using a confidential personalidentification number (PIN). Neverkeep a record of this number with yourcard; if someone finds them, it will beeasy for them to access your money. Ifyour pin number is with the card andmoney is stolen from your accountthen your bank may not reimburse yourmoney if they feel you have beennegligent; always refer to the terms andconditions of your account. If your PINnumber or card is stolen, contact yourbank immediately.

£ Cash cards

£ Current accounts

£ Cheque books andguarantee cards

PAGE 5

Your debit card allows you to buy thingswithout writing a cheque or using cash.There is no legal age limit for obtaininga debit card, but as a rule banks tend towait until their customers are 16 yearsold. You can also use it to pay for goodsover the telephone or online. Youraccount is automatically debited withthe amount you have spent. However,it can take a while (sometimes a fewdays) for payments to show on yourbalance. You can only go overdrawnwith a debit card if you have the bank’sagreement, otherwise you will becharged a fee. Many debit cards doubleas a cheque guarantee and cash card.

Pre-paid cards are growing in popularityin the UK, and are particularly targetedat under-18s and people with a poorcredit rating. Users load the pre-paidcard with a certain amount of money,and can only spend what they have onthe card – this means it is impossibleto go overdrawn on a pre-paid card.Most major card schemes (such asVisa, Mastercard and Maestro) now runpre-paid card schemes. Charges forcards vary greatly, although most chargea monthly fee.

A savings account normally provides ahigher rate of interest than a currentaccount. Most do not come with acheque book or plastic card, and somehave restrictions on when you canwithdraw your money. For example, youmay have to give between 30 and 60days, notice before making a withdrawal.You will still be able to take out yourmoney if your really have to, but willprobably lose some of the extra interestyou would earn if you left your moneyin the account. If you keep money inyour savings account while you areoverdrawn on your current account orhave a loan, you may find the interestyou are paying is higher than the interestthat you earn on your savings account.

Interest earned on bank and buildingsociety accounts is usually paid after taxhas been deducted from it. Unless youhave a high income, that is normallythe end of the matter, and there is nomore tax to pay; see the tax section. Ifyou are not a taxpayer (because yourearnings are not high enough), you caneither get the tax back by contacting atax office or you can choose to havethe interest paid to you without taxbeing deducted. Your bank or buildingsociety will have the forms for you tocomplete that allow them to do this.

BANKS AND BUILDING SOCIETIES

£ What about tax onthe interest I earn?

£ Debit cards £ Savings accounts

£ Prepaid cards

What do I do if someone gives me a cheque?

Look to see that it is correctly written – that it is for theright amount, that it has been signed, and is not

‘post-dated’ (has a future date on). Pay thecheque into your account as soon as possible,

using a paying-in slip. Banks do not usuallyaccept cheques more than six months old.

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Credit is a way of buying goods bydelaying the payment, or by payingin instalments. The different types ofcredit include loans, credit cards andstore cards. You can find out moreabout loans in the next section.

Credit cards are very useful, but cancause difficulties if too much money isborrowed. Young people must usuallywait until they are 18 before they canhave a credit card. Like debit cards,credit cards allow people to buy goodsand services from a huge range ofshops and other suppliers, in person,over the phone or on the internet.Credit cards enable the shop to be paidstraightaway, but the customer is notbilled until sometime later. This meansthat the customer is being lent themoney to buy the goods by the firmissuing the credit card. If you apply for acredit card, the firm issuing the card willcheck out your creditworthiness. Aspending limit will be set on theaccount. A fee will be charged if you goover this, and the card may becancelled. Each month you will receivea statement showing how much youhave spent, how much is owed, andthe minimum payment that must bemade by a certain date. Ideally youshould pay your bill in full to avoidbeing charged interest. If you make nopayment at all, you will be charged afurther penalty. Also your card could be

cancelled and your credit rating couldsuffer. You can compare the costs ofdifferent cards by looking at the AnnualPercentage Rate (APR), which is therate of interest charged by the firmissuing the credit card. The lower theAPR, the lower the cost of borrowing –the Financial Services Authority (FSA)website has a great tool to help youcalculate these costs. Some types ofborrowing on a credit card are moreexpensive than others. Using your creditcard to withdraw cash can be moreexpensive than using it to buy goods.

These cards offer you credit when youbuy goods at a particular store. You aresent a regular statement showing howmuch you have spent, and what youowe. You can pay a fixed minimumamount each time, with the rest beingcarried forward and appearing on yournext statement. Interest is charged onthe amount you haven’t paid off. Thesecharges are often higher than othertypes of credit card. You can check thestore card’s APR and compare it to yourcredit card.

£ Credit cards

£ Store cards

CREDIT

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A bank or building society lends moneyeither through allowing an overdraft orby making a loan.

A person becomes overdrawn whenthey spend more money than theyhave in their bank account. If you needto go overdrawn, you can usuallyarrange with your bank an authorisedoverdraft up to an agreed amount.Interest may be charged. The mostexpensive overdraft is an unauthorisedone – which is run up without theagreement of the bank. Interest is paidon the amount overdrawn, and chargesare added on top. If you ever findyourself in this situation, it is importantto get in touch with the bank as soonas you can. Students may be offeredinterest-free overdrafts.

A loan is an arrangement withyour bank – or other financialinstitution – under which you arelent a specific amount of money. Youenter into a contract for the loan. Thiswill be at an agreed rate of interest andfor a set period of time during whichyou repay the full loan. If you are under18 it is very unlikely that you will beable to get a bank loan, as these kindsof contracts with “minors” are notusually binding. All loans are different –always check the small print to seewhat you are signing up to.

You can often buy more expensivegoods (e.g. cars, computers, TVs) byinstalment – that is, by paying only partof the price at the time of purchase,and paying the rest later. Sometimescredit is available interest-free, butcredit is normally an expensive way ofpaying for things. It is always a goodidea to check the charges (the APR)that are being made. ‘Hire purchase’ isa special form of buying on credit.Technically the shop sells the goods toa finance company and you pay to“hire” them over an agreed period.When you have paid off what you oweyou make a final payment to purchasethe goods (hence “hire purchase”).Only then do you become the owner.

BANKS AND BUILDING SOCIETIES

£ Overdrafts

£ Loans

£ Borrowing from a bankor building society £ Buying goods by instalments

– credit or hire purchase

BORROWING

Second thoughtsIf you signed a credit deal at home(or away from the shop or business

premises) you have a right to cancel if youact quickly. You will be sent a second copy of

the agreement that will tell you how tocancel if you want to. You will have

five days to do this.

PAGE 8

What to do

• Don‘t ignore the problem: it won’tgo away and will get worse thelonger you leave it. You can get freehelp from a range of adviceagencies, see contacts.

• Draw up a budget: list all themoney you owe and the people towhom it is owed; what your incomeand reasonable living expensesare; and see howmuch you canafford to payback. There are arange ofbudgeting toolsavailable onlineto help you dothis. A usefulbudgeting toolis available onthe FSA website,‘MoneyMade Clear’ (seecontacts).

• List your debts in their order ofpriority: at the top are those wherenon payment can have reallyserious consequences – like losingyour flat or home; having theelectricity or gas cut off, or wherenon payment is a criminal offence(like council tax and yourTVlicence). You should aim to pay

these off first and then work outwhat‘s left over for the others,treating them equally.

• Contact all your creditors: go andsee them orwrite or phone; explainthe position and show them yourbudget. Discuss with themwhatyou can reasonably pay. Usuallythey will be prepared to negotiate.You may be able to agree to pay by

instalments or, for a period oftime, just to pay off theinterest on your loan. Ifyou are worried aboutcontacting them directlyyou can contact a free

advice agency for help.• Don‘t borrowmorewithout getting

advice: some individualsor companies lend money

at very high rates of interest,making it difficult to keep up withrepay-ments and hard to get out ofdebt.

People get into debt for all sorts ofreasons. They may find they owemoney to several different people andare tempted to borrow more to pay offsome of these debts. This oftenbecomes even more expensive. You

know it’s getting serious when you startgetting badgered to make repaymentsby the people you owe money to –your “creditors” – and you can’t meet allthe demands.

£ Getting into debt

HELP!

You can get help and advicefrom experts. Try the NationalDebtline or a Citizens AdviceBureau. See contacts.

PAGE 9

£ Buying insurance

Insurance is a way of protectingyourself and your property from anunexpected loss or mishap. You caninsure yourself against almostanything – losing your possessionsin a fire, having them stolen ordamaged, or having to faceunexpected medical bills on holidayabroad. If you drive a car ormotorcycle, you must be insured bylaw. In return for a premium – anagreed amount of money you payeach month or year – an insurancecompany will, if the worst doeshappen, pay you compensation forthe losses or damage that you areinsured against.

There are two ways of obtaininginsurance. You can either deal directlywith the company, or go to a broker.Most large insurance companies haveoffices in the major towns and cities.Their numbers are in the Yellow Pagesor local phone book. You can often dealdirectly with them and arrange yourinsurance cover by phone, or online.Insurance brokers are agents who canhelp you choose an insurer and arrangethe policy for you. They don’t usuallycharge you for this, but instead maketheir money from the insurancecompany that you have decided to use.All the information you give should beaccurate. Questions must be answeredtruthfully, and all other relevantinformation should be given. If it’s not,the insurance policy will be invalid andthe insurer may refuse to pay yourclaim. Keep a copy of any form that you

complete, and when you renew yourinsurance (usually done each year)don’t forget to tell the insurancecompany about anything that haschanged that might affect yourinsurance position. If you don’t, yourpolicy may be invalid. Always check thesmall print to ensure that you get whatyou need included in your insurance.Sometimes the cheaper insurancesdon’t cover as much as others so it’sgood to compare.

Words they use

Broker – an agent who can helpyou choose and apply for insurance.

Cover – insurance against loss ordamage.

Cover note – a temporarydocument showing that you haveinsurance cover, usually sent outwhile the official certificate is beingprepared.

Excess – the amount you will haveto pay towards the cost of your claim

No claims bonus – the discountyou are given on your premium ifyou haven’t made a claim.

Policy – the document setting outthe terms and conditions of yourinsurance.

Quotation – a statement of theamount you will have to pay for theinsurance you asked for. You cansometimes pay an extra premium toreduce this – called a waiver.

PAGE 10

INSURANCE

BANKS AND BUILDING SOCIETIES

PAGE 11

Moneypaid inincome taxis used topay forservicesprovided by thestate – such ashealth, education,defence etc.Everyone who earnsor receives incomeover a certain amountin a year pays income taxand, generally speaking,the more you earn, themore you pay. Current taxrates on income range from20%–40%. As well as earningsfrom full- and part-time work,tips and bonuses, tax is also paidon interest from savings withbanks, building societies and someNational Savings accounts. Incomesupport, profits from business anddividends from shares are also taxable.

Your employer will usually take the taxfrom your earnings each time you arepaid and pass the money on to the taxauthorities, called HM Revenue andCustoms. Everyone is entitled toreceive a certain amount of money onwhich they pay no tax at all. This iscalled a personal allowance, which, fora single person in 2008/2009, is

£6,035. Income tax is paid only whenyour income rises above this. There areother allowances which may beavailable, e.g. for the cost of tools orspecial clothing if they are not providedby your employer. If you are on atraining programme, your grant in mostcases is not taxable.

TAX

£ Income Tax

£ PAYE (Pay As You Earn)

Part-time workers should not have taxdeducted from their pay, unless theirincome is above £116 a week. If youare a student with a holiday job, askyour employer for a form P38(S) if youthink your total taxable income for theyear (including earnings and incomesupport), will be less than the basicpersonal allowance, i.e. £6,035. Fill inthe form, return it to your employer,and you should then be paid withouttax being deducted.

If you have been working and payingtax, but believe your total income forthe year will be less than £6,035, askfor a P50 form from your local taxoffice, and return it completed withyour P45 form from your employer. Youshould then receive a refund.

Failure to complete your taxforms correctly can mean extrainterest payments and evenfines. The HM Revenue andCustoms runs a telephonehelpline, giving information andadvice on tax, see contacts. It alsopublishes free booklets on tax,obtainable from your library or nearesttax office under HM Revenue andCustoms in the phone book.

Almost everybody in Britain who is inpaid work must pay National Insurancecontributions. This money is used tohelp run the National Health Serviceand to provide benefits and pensions.It is generally taken directly from themoney that you earn by your employer.Everyone has their own NI number,which they receive just before theyreach 16. Your NI number is used torecord all your NI contributions andmust be given when claimingbenefits.

BANKS AND BUILDING SOCIETIES

£ National Insurance

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SPENDINGCONTRACT

THE SALE OFGOODS ACT

JUNK MAILAND PHONE

CALLS

PUT DOWNS

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£ The Sale of Goods Act

The law applying to most everydaypurchases is the Sale of Goods Act1979 – an important act that hasbeen extended over the last 30 years.

The Act states that when you buygoods from a shop or trader, theymust…

... be of satisfactory qualityThis means that they must be free fromfaults and not scratched or damaged,and equally applies to goods bought ina sale. However, this rule does notapply if the fault was pointed out by thesales assistant or if you inspected theitem and had a good opportunity todiscover the fault. Second-hand goodsbought from a shop or trader must alsobe of satisfactory quality.

…be fit for all their intendedpurposesThis means that they must do what theseller, packaging or advertisementsclaim. A watch sold as waterproofshould not stop if you forget to take itoff in the shower.

These protections do not apply if youbought the goods privately (e.g.through a ‘small ad’) – when the buyeris responsible for deciding the quality ofwhat she or he wants to buy.

… match the descriptionThe goods must be the same as thedescription on the packaging, oradvertisement or given by the assistantat the time of sale. A bracelet markedsolid silver, must be just that.This rule also applies to second-handgoods, and goods sold privately.

When it comes to spending money, it helps to know where you stand in law.This section explains what you can do if there a problem with any of the goodsor services that you buy.

SPENDING

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IT’S A CONTRACT

WHAT SHOULD I GET FOR MY MONEY?

When you buy something from a shopor pay for a service (like a train fare orhaircut) you are making an agreement,known in law as a contract.The contract means that, in return

for the money that you pay, thegoods you buy should do everythingyou can reasonably expect and, inparticular, all that the seller andmanufacturer claim.Once a contract has been agreed,

neither side can change it on theirown.

Some shops allow customers to optout of their contract by agreeing toexchange unwanted items or byproviding a refund, as long as goodsare returned in mint condition withthe receipt. Shops don’t have to dothis by law, unless it was promisedas part of the contract.But what about your rights if thegoods you have bought arefaulty?

If you’re buying something expensive, itis wise to do some research beforehand.There are various consumer magazinesand websites which review/rate differentproducts. You can also go to a shop andask just to see an item, without buyingit. If you decide to make a purchase,keep the receipt in case you have acomplaint.

Dry cleaners, shoe repairers, hairdressers,travel agents and many others providea service – and you are protected bylaw if that service is inadequate.

Under the Supply of Goods andServices Act 1982, a service must beprovided...• with reasonable care and skill;• within a reasonable time; and• for a reasonable charge, whereit is not agreed beforehand.

Problems are less likely to occur ifcertain things are agreed before thework is started. How much will it cost?How long will it take? What happens ifthe work can’t be finished? Try to sortthese out first. Handle your complaintjust as you would were it for faultygoods. Don’t be afraid to seek advice.Help is available from your localCitizens Advice Bureau, tradingstandards or consumer advice centre.

Some trades, such as travel agents,garages, dry cleaners, shoe sellers etc.,have their own associations layingdown a code of practice or standards.These have no legal standing, but theassociations can help you resolve yourcomplaint against a trader. Contactaddresses are available from your locallibrary or online.

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£ Getting it right £ Problems

£ Services too

SPENDING

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Some businesses will try and get youto part with money that you mightnot want to spend, others may bereluctant to pay you money they arelegally obliged to give you – it’simportant that you know your rightsin these situations.

If you want to cut down on the junkmail you receive, you can register withthe Mailing Preference Service atwww.mpsonline.org.uk. It’s quite asimple process, but takes about fourmonths to take full effect.

If you are worried, angered orinconvenienced by telesales calls, youcan sign up to the TelephonePreference Service,www.tpsonline.org.uk, whichscreens and reduces the number ofcalls you will receive.£ Junk mail

£ Telesales

JUNK MAIL AND PHONE CALLS

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Most spam offers are a scam. If themessage looks doubtful, delete it, anddon't click on the adverts. Under thePrivacy and Electronic CommunicationsRegulations, businesses can send directmarketing messages by e-mail only toexisting customers or to those peoplewho have agreed to let them do so.

However, a great deal of bulk spam issent from outside the UK, and there islittle that UK law can do to deal withthis. If this becomes a problem, you mayget some help from your internet serviceprovider (ISP). There is also informationavailable from the InformationCommissioner's Office (see contacts).You may also receive so called ‘419’ or‘Advance Fee Fraud’ e-mails. These e-mails usually promise you considerablecash rewards if you help to transfer alarge sum of money by payingimaginary fees and charges. This is ascam – if you receive such an e-maildelete it and do not reply.

Another scam is called ‘Phishing’. Thisinvolves sending e-mails that look likethey come from a genuine company(or even your bank) to try and trick youinto disclosing personal informationsuch as your pin number or bankdetails. You should never providepersonal information in this way – formore information visit Bank Safe Online(see contacts).

Rogue dialling scams use a computerprogramme to trick victims’ computersinto dialling premium rate numbers,often costing as much as £1.50 perminute. Internet users can find thattheir telephone bill has increased byseveral hundred pounds afterunknowingly downloading a rogue dial-up programme. Unfortunately, theyhave little choice but to pay up.Contacting your telephone provider andPhonepayPlus (see contacts) may stopthe problem from happening again.

If you cannot get any satisfaction over aproblem with faulty goods or poorservice, you can write to the personconcerned warning them that you willtry to recover the money they owe youby taking your case to the small claimscourt (strictly known as the small claimstrack). This is a simplified way ofsettling disputes, in which a judge hearsyour case in an informal setting withoutyou having to be represented by lawyers.Cases involve claims of less than£5,000 and can be brought only bysomeone of 18 or over. In Scotlandsmall claims are brought in the SheriffCourt to settle claims of up to £3,000.You can get more details from your localcounty court (under Courts in the phonebook), the Citizens Advice Bureau or aconsumer advice centre, (seecontacts).

£ Spam £ Rogue-dialling scams

£ The small claims court

Some businesses will do as much asthey can to help you with a problemover something you have bought;others may claim there is nothingthey can do. Don’t give up if the shoptries to get out of its legalobligations…

… we’ll send itback to theworkshopOnly if you want them to. If you actreasonably quickly you can choosewhether to ask for a full or partialrefund, compensation or to have thegoods repaired or replaced (if that isa practical option). If the goods havedeveloped a fault in the first sixmonths it is assumed they were faultywhen you bought them (unless theshop can prove otherwise).

… you’ll have to take it up withthe manufacturerWrong. You bought the goods fromthe shop and your contract was withthem, not with a manufacturer onthe other side of the world. If thegoods genuinely don’t work, the shophas not kept its side of the contractand you have a right to get yourmoney back. Shops normally have toaccept responsibility to you for themanufacturer’s claims..

… we’ll give you a credit noteNo. If the goods are faulty, you’reentitled to your money back,providing you act quickly. You don’thave to accept a credit note if youdon’t want to. If you do accept acredit note, check where and when

you can use it – some credit notesmust be used within a fixed time andonly in exchange for certain goods orservices.

…sorry, it’s out of guaranteeThis can be tricky. A major problemwith an expensive computer threemonths after the guarantee has runout can lead to a large repair bill.Raise it with the dealer and ask totalk to the manager. Produce thedocumentation and use themanufacturer’s literature (whichprobably stresses reliability andquality) to point out that it is notreasonable to expect a failure aftersuch a short period. There’s no hardand fast law about what isreasonable in terms of a productfailure. It depends on thecircumstances.

… we don’t giverefunds on sale goodsWrong. Unless the faultwas pointed out to youor was something you

should have seen when you boughtthem, goods bought in sales carry allthe protection of the Sale of GoodsAct 1979.

… we’ll give you a replacementOnly if that’s what you want.However, if by now the fault has ledyou to decide that you don’t reallywant the product after all, you areentitled to your moneyback – not a replacement.It’s up to you to choosewhat to do.

PUT DOWNS

SPENDING

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If you are not satisfied with somethingyou have bought…• Stop using it straightaway andtake it back, with the receiptand guarantee (if you haveone), to the shop where youbought it. It strengthens yourcase if you can do this as soonas possible. Your contract waswith the shop, not themanufacturer, so it is the shop’sresponsibility to deal with yourcomplaint. Even if you have lostthe receipt, the contract stillexists.

• Before you take the goods back,decide what you are going tosay and what you would like theshop to do. Do you want yourmoney back, or will you accept arepair or a replacement item?

• Think about your legal position.A faulty earphone connectionon an MP3 player means that itis not of satisfactory quality.Don’t be afraid to use the lawwhen making your case.

• If the shop assistant doesn’t help,ask for someone more senior.

• If you bought the goods by mailorder or from a shop somedistance away, it’s easier totelephone or write. Keep a copyof all letters, send a photocopyof your receipt (keep theoriginal), and if you talk on thephone, get the name of theperson you spoke to. Make abrief note of the conversation.

If you buy goods online or over the phone,your basic legal rights are the same asbuying something in a shop. Howeveryou also have a number of additionalrights. These include the right to:• be given clear informationabout the nature of the product,what it will cost you (includingtaxes and delivery), and thename and address of the seller;

• cancel your order up to sevendays after you have receivedthe goods (see below);

• have the goods delivered within30 days of your order, unlessyou agreed with the seller thatit would take longer. If the goodsdo not arrive within this time,you are entitled to a full refund.

£ Finding it’s wrong £ Buying over the phoneand on the internet

PAGE 19

SPENDING

These rights to cancel do not apply tocertain goods and services, includingfood and other perishable items,unsealed computer software, CDs andDVDs, magazines, newspapers andtickets for travel, accommodation orevents. For further details contact yourlocal Citizens Advice Bureau orConsumer Direct (see contacts).

If you are buying goods from a countrywithin the EU your additional rightsshould be the same as they are in theUK. However, some countries may notyet have put them into practice andchasing up a supplier in anothercountry may not be straightforward,and could be costly. If you are buyingfrom outside the EU, check the smallprint and be aware that the law may bedifferent from the UK, which is likely tomake it more difficult to pursue acomplaint.

£ Cancellation £ Buying goods fromoutside the UK

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STUDENTFINANCE

SCHOOL ANDFURTHER

EDUCATION

HIGHEREDUCATION

STUDENTLOANS

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EMAs are financial payments designedto encourage students to stay ineducation after 16, and to help with thecosts of their travel, books andequipment.

Weekly payments of £10, £20 or £30a week are available during term time,depending on total household income.

EMAs are available to students inEngland, Wales, Scotland and NorthernIreland, but the rules governingapplications and eligibility are slightlydifferent in each country. Applicantsmust be aged between 16 and 18 andenrolled on specific full-time courses,such as GCSEs, A or AS levels, andcertain diplomas or basic skills courses.

Students who apply for an EMA arerequired to sign a contract agreeing togood attendance. The money ispaid directly into the student’s bankor building society account, andbonuses are available to studentswho meet their attendance andperformance targets.

An EMA is not taxableand does not affectother benefits, butmay be withdrawnor have to be paidback if a studentfails to meet theterms of theirlearningagreement.

Students studying in the sixth form or atFE college may also be entitled to helpfrom learner support funds. These aredesigned to help students from low-income families. Details are availablefrom local authorities, schools orcolleges.

Students in Wales may apply for anAssembly Learning Grant (ALG). This isavailable to students aged 19 and over,studying on a course of at least 275hours leading to a nationally recognisedqualification. Payments are available upto £1,500 for full-time students and£750 for part-time students, and alsodepend on household income.

Young parents who are under 20, infurther education and

caring for their children,can get help of up to£160 per week (£175in London) withchildcare and travelcosts under the Careto Learn scheme.

See contacts forfurther details of

all grants andallowances.

STUDENT FINANCE

£ Other financial hlp£ Other financial help£ Education MaintenanceAllowance (EMA)

SCHOOL AND FURTHER EDUCATION

PAGE 22

There are two main areas ofexpenditure for students – the costof their tuition, and general livingexpenses.

Tuition fees • Students who start theircourse in England in September 2009will be required to pay tuition fees ofup to £3,225 a year.

Students who normally live inScotland and choose to study there arenot required to pay any university orcollege tuition fees. Students who liveand study at college or university inWales are entitled to a non-meanstested grant of up to £1,940 to covertheir fees, which does not have to berepaid. However students from bothWales and Scotland who choose tostudy outside their own country aregenerally required to pay the fees ofthe country in which they are studying.

Living costs • These are likely to be inthe region of £6,000-£9,000 a year,depending on where you live, youraccommodation arrangements andyour general spending patterns.

There are three general areas offinancial help available to students:• loans and grants from thegovernment

• a bank overdraft• bursaries and scholarships fromuniversities

Students can also benefit fromdiscounts on things such as food, traveland clothing.

The availability of financial help from thegovernment depends on the course thestudent is taking, where they live andtheir individual circumstances. Studentscan receive help for their tuition feesand the cost of living (also known asmaintenance), via loans and grants.

Tuition fees • A government loan isavailable to cover the cost of a student’stuition fees. This is not dependent onthe student’s family or householdincome.

It becomes repayable when thestudent has finished university and isearning more than £15,000 a year.

Maintenance loan • This is availableto help students cover the cost ofaccommodation, food, travel,books, leisure etc. It is madeup of two parts – one thatis dependant on familyor household income,and one that is not.

See page 26 for moreinformation on studentloans.

HIGHER EDUCATION

£ Help from the government

£ Loans

£ Financial help

PAGE 23

Maintenance grant • Students frompoorer backgrounds in England andWales, may be entitled to financial helpfrom a maintenance grant, currentlyworth up to £2,835 per year.

Students whose family income isbelow £25,000 per year receive the fullgrant. Those whose family income isbetween £25,000 and £60,005 receivea partial grant, although at the higherlevel, it is very small.

The maintenance grant is paid in threetermly instalments, and does not needto be repaid.

Special Support Grant • A SpecialSupport Grant is available for studentswho are eligible to receive IncomeSupport and other means-testedbenefits such as Housing Benefit. Itcovers additional course costs such asbooks, equipment, travel or childcare.The arrangements for assessing andpaying the special support grant are thesame as for the maintenance grantabove. Students who receive amaintenance grant and those on a gapyear are not entitled to a SpecialSupport Grant.

Assembly Learning Grant • Studentsliving and studying in Wales from lowincome backgrounds may qualify for anAssembly Learning Grant, funded bythe National Assembly for Wales. Thegrant applies on top of a student loanand other forms of support. It neednot be paid back at the end of thecourse and does not affect a person’seligibility for benefits.

Young Students’ Bursary (YSB) •This is available to students living andstudying in Scotland, whose householdincome is less than £33,300 per year.The Bursary need not be repaid andallows students to reduce the level oftheir student loan by up to £2,575 peryear.

Students receiving a YSB may also beeligible for an Additional Loan if theiryearly household income is below

£21,210.Students in Scotlandare also entitled to

help with the costof daily travel tocollege or

university.

STUDENT FINANCE

£ Grants

PAGE 24

Most banks offer special accounts forstudents, often with incentives such asvouchers, discounts or a free railcard.They also offer an overdraft facility (seepage 8) allowing you to go overdrawnup to a certain amount (sometimes upto £1,500 - £2,000 at the end of yourcourse).

The interest rates on studentoverdrafts are normally very low, butmay rise sharply when your course isover. It therefore pays to clear yourbank overdraft as soon as you possiblycan, or open a Graduate Account,which is often more flexible aboutstudent overdrafts.

Some students have more than oneaccount. Some banks allow this, othersdo not; therefore it’s important to readthe terms and conditions of youraccount.

Although access to a second overdraftmay be advantageous in the short run,it means that twice the money may berequired at the end of the course topay off all your debts.

Bursaries and scholarships • Manyuniversities offer bursaries, designed toreduce the overall cost of fees, as dosome charities, employers and sportingorganisations. These are oftenspecifically available for students whosefamilies are on a low income, but mayalso be available to students who haveachieved high grades at A level.Information is available from individualuniversity websites.

A national bursary scheme operatesfor students in Wales.

£ A bank overdraft £ Help from collegesand universities

PAGE 25

PAGE 26

How much can I borrow? • Thisdepends on your family’s income,whether you are living at or awayfrom home, and whether you arestudying in or outside London.Currently, students living away

from home and studying outsideLondon can obtain a maximum loanof £4,625, or £6,475 if theiruniversity or college is in London(and £6,480 if they are from Walesand studying in London). Themaximum available to students fromScotland , whether they study inScotland or elsewhere, is £4,510.Students from England can also

apply for a tuition fee loan of up to£3,225 a year (2009), depending onhow much they are charged by theiruniversity. This loan does notdepend on the size of theirhousehold income.

How much will the loan cost?• Interest is charged on the loanfrom the date on which the firstpayment is made, and is linked tothe rate of inflation. At the moment

it is 3.8 per cent, chargeable fromthe moment the loan is taken out.

When do I pay it back? • You don’thave to start paying it back untilyour course has finished, and youhave a job in which you earn a least£15,000 per year. Deductions willbe made automatically by youremployer, in the same way as taxand insurance.A person earning £1,500 per

month (£18,000 per year) wouldhave £22.50 deducted each month.Payments would cease if theirannual income fell below £15,000,and begin again when it returned toa figure above this level.If you wish, you may pay off your

loan more quickly with extravoluntary repayments.

Where can I get moreinformation? • Information isavailable from your local authority,see contacts for details of helpfulwebsites and organisations.

Student loans

Through the Student Loans Company the government provides loans forstudents on full-time courses designed to cover both tuition fees and livingcosts.

STUDENT FINANCE

CONTACTS

PAGE 27

www.aimhigher.ac.uk – agovernment website with informationfor those thinking about going intohigher education.

www.banksafeonline.org.uk –information on staying safe whenbanking online.

http://caretolearn.lsc.gov.uk – theLearning and Skills Council site onchildcare for young learners.

www.citizensadvice.org.uk – theCitizens Advice Bureau is a charity thatprovides free advice to help peopleresolve their legal, money and otherproblems.

www.consumerdirect.gov.uk – agovernment advice site for consumers.

www.direct.gov.uk – the officialgovernment website for citizens, withdetails about public services.

www.fsa.gov.uk – the FinancialServices Authority homepage

www.hmrc.gov.uk – HM Revenueand Customs website.

www.ico.gov.uk – the homepage forthe Information Commissioner's Office

www.jobcentreplus.gov.uk – hasinformation on benefits and jobs.

www.moneymadeclear.fsa.gov.uk– a website produced by the FinancialServices Authority with clear and simpleexplanations of many issues associatedwith money.

www.nationaldebtline.co.uk –provides free, independent andconfidential advice about dealing withdebt.

www.nus.org.uk – the NationalUnion of Students website.

www.oft.gsi.gov.uk – the officialwatchdog protecting consumers’interests.

www.phonepayplus.org.uk – thewebsite of the organisation regulatingservices such as competitions, TV votingand downloads that are charged tousers' phone bills.

www.saas.gov.uk – the StudentAwards Agency for Scotland.

www.slc.co.uk – the Student LoanCompany website.

www.studentfinancedirect.co.uk –information about all aspects of financefor students going to university.

www.studentfinanceengland.co.uk– the Student Finance England website.

www.studentfinancewales.co.uk –the Student Finance Wales website.

www.tradingstandards.gov.uk –Trading Standards has offices in mosttowns and provides free advice on arange of consumer problems.

Photo credits:

Ablestock: Pg 8 (girl).iStockphoto: Cover (jeans); Introduction; Pgs 1 (£1 coin);4-5, 6-7, 8-9, 10-11, 12 (credit cards); 5 (bank); 6 (cheque); 7 (girl); 7 (statement);9 (pasta); 10 (umbrellas); 11 (tax); 11 (payslip); 12 (group); 13 (chip & pin); 13 (shopping); 14-15, 16-17, 18-19, 20 (receipt); 15 (shopping); 16 (call centre);16 (letterbox); 17 (wallet); 17 (spam); 18 (illustrations); 19 (keyboard); 19 (trolley);20 (shoppers); 21 (money); 22-23, 24-25, 26 (coins); 22 (student); 23 (mortarboard); 23 (coins); 24 (student); 25 (hand); 25 (statement); 26 (pocket); 27(keyboard); 27 (girl at computer); back cover (students); back cover (money).Nomad: Pg 12 (NI card).Not for Zombies: Cover (coins); Pgs 1 (coins); 3 (Sir John Houblon);3 (£50 note); 4 (girl); 4 (credit card); 5 (ATM machine); 21 (Queen);25 (Piggy bank).www.opsi.gov.uk: Pg 15 (Sale of Goods Act 1982).

MYMONEYMYRIGHTSInformation in this booklet is takenfrom the Young Citizen’s PassportEdition 13’. If you’d like to order acopy of the YCP, you can obtain itonline atwww.hoddereducation.co.uk.

Alternatively, you can subscribe tothe online version atwww.ycponline.co.uk.

The Young Citizen’s Passport isproduced by the CitizenshipFoundation, an independenteducational charity which aimsto empower individuals toengage in the wider communitythrough education about thelaw, democracy and society.

The Citizenship Foundation63 Gee StreetLondon EC1V 3RS

Tel 020 7566 4141Fax 020 7566 4131

www.citizenshipfoundation.org.ukE-mail info@citizenshipfoundation.org.uk

Charity Reg No. 801360

I S BN 978-0-340-99112-1

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