Savings

As yet no British bank offers the facility for families to link savings accounts together to gain the superior interest rates paid on larger balances. But individuals can pool their own finances via an offset mortgage. Here, savings are offset against your mortgage and individuals only pay interest on the difference.

Given that interest charged on debts is far higher than the rate paid on deposits, this can add up to substantial savings – particularly in the current climate where savings rates are so low. Almost half a million people now have these mortgages.

According to First Direct, a higher-rate taxpayer with an average savings balance would have been almost £3,000 better off with an offset mortgage over the past two years when compared with returns from a best-buy savings account.

As offset mortgages tend to have slightly higher interest rates than conventional home loans, they are more suited to those who already have some savings.

Mortgages

Despite the housing minister’s calls last week, it is already perfectly possible to get a mortgage with friends. Lloyds Banking Group, which runs both the Halifax and C & G mortgage brands, said it allowed up to four friends to buy a home together, but only two people’s salaries would be taken into account when deciding how much they could borrow.

But given that the main stumbling block for many first-time buyers is the deposit, this can still be a useful way to get on the first rung of the housing ladder.

The vast majority of lenders (including Lloyds Banking Group) will lend only up to 90pc of a property’s value, with borrowers needing a deposit of between 20pc and 25pc to secure a competitive rate.

The average deposit is now more than £20,000. Combining savings with friends can be a more effective way to build such a pot.

Britannia, part of the Co-op, is one of the few lenders to offer a mortgage aimed at friends buying together. Again up to four people can borrow – but here all salaries are taken into account.

Investments

The middle classes should copy wealthier families and work together to preserve and boost their assets, according to Justin Urquhart Stewart, a director of Seven Investment Management.

As he pointed out, generations within the same family typically run their finances separately, although their interests are often aligned – such as in securing a decent retirement for older relatives, maximising inheritances or paying school fees for grandchildren.

By discussing these issues together, families can work out a coherent financial strategy that is tax-efficient – particularly in relation to inheritance tax. This can be facilitated by the use of trusts, and by making sure all family members utilise their various tax allowances. By pooling resources they can also secure investment products and advice at a lower cost.

Chris Mole of the wealth managers Towry said: “When everyone invests individually they tend not to get good value. Typically people end up buying inferior products from banks which have high charges. This is not an efficient way to invest. Those of modest means should do all they can to reduce unnecessary waste, and not pay high fees many times over.”

Saving Money With Your Friends Or Family

From taking out a mortgage to paying for a trip to the cinema, clubbing together with family or friends can save you money.

Whether it’s with family, friends or complete strangers, it can pay to club together to get a better deal on your finances. Research published last week showed that it costs over £5,000 a year more to live as a single person rather than a couple.

This gap is rising, as those living alone are hit harder by the high annual increases in gas and electricity bills and rising food inflation.

But you don’t need to join a dating agency if you want your money to go further.

Need Help Achieve Your Financial Goals?

How many times have you made a New Year's, began brightly January 1 and lost power on January 31? Publicize your goal might provide just the boost it needs to stay motivated and responsible throughout the year.

"No purpose is achieved in a vacuum," said Gary Ryan Blair, author of The Ten Commandments of Goal Setting. "We all need advice and support that only comes from other people involved."

Friends, relatives or spouses make money a lot of friends because they want you to succeed. You may find it useful to ally with someone who shares the same goals-say your best friend and you work together to capture the dependence of credit cards this year. The key is to find someone you feel comfortable talking openly with your economic successes and failures.

If you are not comfortable baring their souls for financial ones closest to you, you may find it easier to open up to strangers. Who you want, begin to formulate your goals. Simply stating that you want to learn more about the investment is too nebulous. Nail your goal in an action and commit to a deadline

Federal Financial Aid

FAFSA is a commonly used abbreviation for the “Free Application for Federal Student Aid.” Every student should file one of these reports at the beginning of each year, even if they don’t expect to be eligible for federal financial aid. Federal funding includes the Pell Grant and eligibility for subsidized student loans, and eligibility is determined by the student’s financial situation. The more you need money for college, the more likely FAFSA can help you. Click here to learn more about FAFSA - and then when you’re ready to sign up, head over to the FAFSA home page to register for a pin to access your account, and apply for federal student aid.

Chances are, no one source is going to give you all the college money you need to pay for tuition and expenses. The key to graduating debt-free requires drawing on a lot of these sources – never turning down an opportunity for free money just because it doesn’t seem like “enough.”