Week 2

Saving Strategies

Build your emergency fund, choose the right savings accounts, and put your money to work without taking on risk.

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Learning OutcomesBy the end of this week, you'll…

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Identify different types of savings accounts and how they work.
Choose the right savings account based on specific financial goals.
Understand how interest rates (AER) affect savings growth.
Differentiate between Cash ISAs and regular savings, including tax implications.
Calculate and build a personal emergency fund (3 to 6 months of expenses).

Class Slides

This week's slide deck

Use the arrows or your keyboard to scroll through the slides. They are view-only inside the portal.

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Week 2 Quiz

Test what you've learned

Do this week

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Individual Tasks

Do these before the next class

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Individual Tasks

Your individual tasks this week

Tick each one off as you complete it. The full instructions are in the downloadable Individual Tasks PDF in the resources at the bottom of this page.

Open a new savings account that fits your goal
Check the interest rate (AER) on your current savings
Set up a standing order from your current account to your savings
Complete the Emergency Fund Calculator (linked in Tools)
Set up your first sinking fund (Christmas, MOT, holidays, etc.)
Share your screenshots in the WhatsApp community

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Wealth Pod Task

Discuss with your pod

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Wealth Pod Task

The Emergency Fund Dilemma

Read Priya's situation, jot down your own thoughts, then bring them to your Wealth Pod meeting this week. Your answers below save automatically in your browser.

Week 2 Case Study

Meet Priya

29 years old · Marketing Manager in Birmingham · £2,800 a month · £400 spare each month · three big goals and no idea where to start.

Read Priya's full situation Tap to readHide▾

👋 The background

Priya is 29 years old and works as a Marketing Manager in Birmingham. She earns £2,800 per month after tax and has been meaning to get her finances in order for years. She recently finished paying off her student overdraft and finally feels like she has some breathing room.

📊 Financial snapshot

💰 Monthly income£2,800 (after tax)

🏠 Essentials£1,600 / month

🏦 Current savings£2,500 (at 0.1%)

💷 Spare each month£400

✅ DebtsNone

👵 PensionWorkplace (3% match)

🎯 Her goals

🛟Emergency fundShe only has 1.5 months of expenses covered.

🏡House depositShe wants to buy in 3 to 4 years.

📈Long-term investingShe wants to start building wealth for later.

😩 The dilemma

Priya feels overwhelmed. She has £400/month available to save, but three competing goals. She has been paralysed by indecision for months and keeps her savings in her current account earning almost nothing while she figures it out.

She keeps reading conflicting advice: some say emergency fund first, others say take advantage of the LISA bonus while you can, and she has heard that investing early is crucial for compound growth.

THE QUESTION

What should Priya actually do?

🧮 Try splitting Priya's £400

Drag the sliders to see how different splits play out. This is a maths visualiser, not advice.

The £400 explorer

Allocated: 0 / £400

Start with the sliders at 0 and move them around. They cannot total more than £400.

🛟 Emergency fund£0/mo

Move the slider to see Priya's progress.

🏡 Lifetime ISA (house)£0/mo

Move the slider to see the government bonus.

📈 Stocks & Shares ISA£0/mo

Move the slider to see annual contributions.

Heads up: you have allocated more than £400. Bring the sliders back so they total £400 or less.

LISA limit is £4,000 per tax year (capped at £334/month). Bonus = 25% of contributions, paid by the UK government. Numbers ignore interest and investment returns.