Financial Literacy Skills

How to Save Money on Your Phone and Phone Contract




Mobile phones are essential, but they don’t have to break the bank. Here are practical tips to cut costs on your phone and contract while staying connected.

1. Saving on a New Phone

  • Choose a Cheaper Model:
  • Opt for last year’s version or a budget-friendly brand. Most modern phones offer excellent functionality.
  • Consider Refurbished Options:
  • Buy from a reputable seller and ensure it comes with a warranty. Refurbished phones are more affordable without compromising quality.
  • SIM-Only Deals:
  • Purchase the phone outright if possible. SIM-only contracts are consistently cheaper than bundled plans.
  • Stick with Your Current Phone:
  • If your phone still works well, keep using it. Pair it with a SIM-only plan for significant savings.

2. Reviewing Your Contract

  • Analyze Your Usage:
  • Data: Most users don’t exceed 2–3GB per month. Check your usage to avoid overpaying for unlimited plans.
  • Calls and Texts: Ensure you’re not paying extra for services you don’t need. Consider free messaging apps like WhatsApp.

  • Family Discounts: Look for deals offering free calls within the same network for family members.

  • Upgrade or Downgrade:

  • Providers often push upgrades, but downgrading could align better with your needs.

  • Use price comparison sites to identify better deals and negotiate with your current provider.

  • Time Contract Renewals:

  • Check for better deals when your contract term ends (usually 1–2 years). Mentioning that you’re considering switching can lead to special retention offers.

3. Pay Monthly vs. Pay-As-You-Go

  • Pay Monthly:
  • Ideal for heavy users. Some plans offer low-cost options with data rollover.
  • Pay-As-You-Go:
  • Useful for occasional users. Be cautious of hidden costs like minimum top-ups or unused data expirations.

4. Avoiding Unexpected Costs

  • Data and Usage Caps:
  • Set data limits and receive alerts when nearing your allowance. Avoid expensive overages.
  • Wi-Fi First:
  • Disable mobile data when Wi-Fi is available to minimize usage.
  • Childproofing Purchases:
  • Disable in-app purchases and educate kids about online spending.
  • Premium Numbers:
  • Avoid calling premium-rate numbers (e.g., 0871 or 09 in the UK).

5. Insurance: Necessity or Extra??

  • When to Skip Insurance:
  • If your phone is inexpensive or you’re careful with devices, consider saving the premium instead.
  • When to Insure:
  • If your handset is costly or included in a contract, insurance can be worthwhile for peace of mind.

Shop Around for Insurance:
- Mobile provider insurance may not be the best deal.
- Check if your household insurance or bank account perks cover phones.

6. Look for Contract Extras

Some providers include perks like streaming service subscriptions. If you already use these services, they can save you additional money.

Summing it up

  1. Opt for SIM-only plans and avoid unnecessary handset upgrades.
  2. Shop around to find better deals—your provider won’t offer these upfront.
  3. Be vigilant about unexpected charges and only pay for what you truly need.

By being strategic, you can significantly reduce your phone expenses while keeping up with life’s demands.

❤ If you liked this, consider supporting us by checking out Tiny Skills - 250+ Top Work & Personal Skills Made Easy