Your first job, your first tax return – lots of financial questions suddenly start popping up. What’s the best thing to do? In the video, our expert gives useful tips that can help you on your way to financial independence. We also shine a light on the most important financial topics for all life stages from 0 to 25 years of age.
New financial challenges start appearing when beginning an apprenticeship or a course of study. Stephan Bucher, our expert, explains in the video what you should know about money before your 20th birthday. Here is a summary of the most important tips for you to read:
“It’s a good idea to start transferring money regularly to your savings account as early as possible. It’s easiest to do this with a standing order so that you don’t even have to think about it. This means you will have money saved up when the time comes to pay for your driving test, buy new furniture or you want to start travelling.”
“When choosing their first health insurer, most people tend towards taking the first offer that comes along, or just simply follow on from their parents. I would advise checking, comparing and then making a decision for yourself in your own time. You can nearly always save money by doing this.”
“Once you reach 18, you have to fill out a tax return, whether you’re working or not. It’s important to fill this out correctly, or you risk getting a fine. If you’re already working, you can deduct professional expenses from your taxes. This includes in particular commuting and lunch costs.”
“A whole range of new opportunities opens up with your first salary. However, this is also a good time to set up a budget. There are many tools available that can show your exact income and expenditure each month.
“By making payments into a retirement savings account 3a, you can plan for your retirement and save money on taxes at the same time. It’s also a good idea to look into investing and find out the relevant information as soon as possible.”
Did you know? Everyone in Switzerland earning an income subject to OASI can make payments into a third pillar account. This means that even students with jobs or apprentices can pay into the pillar 3a.
Birth, the first holiday job, driving licence, the first big trip: there are a lot of important questions and decisions about money in life. Let’s go on a journey through time together with Lilly.
When Lilly was born, her parents opened a children’s account for her. Whenever they made a small contribution, they always thought of Lilly’s future: her first school day, the times she’ll realize her dreams and of the adventures that await her. They knew the money would come in handy one day, be it for education, getting a driving licence or moving into her own home.
On her 12th birthday, Lilly’s parents opened a “youth account” for her. Her youth salary and any gifts from relatives are paid into this account. Lily can also use a card to withdraw and spend her money with this account. This way, she learns how to use money and manage it responsibly. Lilly’s favourite hobby is football. When she wants to buy new football shoes, she knows she has to save for them. Lilly enjoys having the freedom to access her own money.
At 14, Lilly starts thinking how she could earn some extra pocket money. A holiday job is the perfect opportunity to gain some work experience and earn some money at the same time. She asks herself:
More tips on: The link will open in a new window student jobs – jobs for young people
At 15, Lilly starts her apprenticeship at a higher vocational school. While working as an apprentice, she receives a regular salary that she proudly pays into her youth account. She maintains an overview of her monthly income and expenditure with the aim of keeping an eye on her finances and avoiding any unexpected expenses. Lilly also sets up a monthly budget so she can keep an eye on her expenditure and check that she’s not spending more than she’s earning. She also saves money because she doesn’t have to pay fees on her youth account.
After successfully completing her apprenticeship, 19-year-old Lilly wants to explore the world before starting her studies. She dreams of travelling solo, but has a lot of questions:
Lilly decides to pick New Zealand as her travel destination. New Zealand is famous for its stunning scenery and multi-faceted culture.
Lilly organizes everything she needs before setting off. Among other things, she decides to open a “student account”. She also applies for a credit card at the same time that she can use on her travels. Good tip: the SmartStudents banking package is free of charge.
Back in Switzerland, Lilly starts her studies with a new perspective of the world. The experiences she had in New Zealand not only taught her a lot, but also affected her personally. Throughout her studies, Lilly benefits from her student account.
At 24, Lilly applies for a job and starts working. It is now time to switch to a normal basic account as a salary account.
Now 26, Lilly examines her finances once again and adjusts her household budget . She’s feeling the squeeze: her salary is increasing, but so too are living costs – whether its for free-time activities, insurance, salary deductions etc. She uses her budget app to help with this. Lilly plans to check her budget whenever she experiences a major change in her life. It’s well worth it.
How do you set up your own budget and why is it so important? FinanzFabio is a famous Swiss finance blogger and has tips to share with you.
