It’s Never Too Early
When it comes to learning good money management tips; it's truly never too early to get started. In fact, learning how to save and spend wisely when you're young gives you great insight on how to best handle your finances and will help you build a solid financial future for years to come.
By the time you graduate from high school and are headed to college or looking to begin a new career, you should be prepared to earn money as well as know how to properly spend and save it. Here are some basic money management tips to help savvy young adults make the most of their income no matter how much money they're making.
Money Management Tips for Young Adults
1. It’s Never Too Early to Set Financial Goals
When it comes to setting financial goals, the earlier the better! In fact, as soon as you start earning money of your own, you should begin setting long term and short term financial goals to keep you motivated, goal oriented, and to keep your spending on track. You don’t have to make a lot of money to set financial goals. Any money management plan you make is a good idea and a great lesson in finance.
2. A Budget is Your Friend
Learning good budgeting techniques when you're young will help you maintain your financial freedom as you build your life to buy a home, a car, open Individual Retirement Accounts (IRA’s), etc. Even with a part-time job while in high school or college, budgeting is crucial to ensure how to best save and spend your money so that you can afford everything you need and want. Budgeting can start as early as teaching your young children how to allocate the allowance they're given and the importance of saving a little money every month.
3. Learn About Savings and Checking Accounts
By the time you graduate from high school, you should already have at least a checking account and should be considering a savings account as well. You should also have access to those accounts and know how to make deposits, withdrawals, and check the status, which is easy today with the variety of online tools that are available for managing your money. This is especially important if you plan to work or go to school away from home, where your parents may not be readily accessible when you need to access your accounts. The Peach State Xtreme Teen Checking Account is a great option with no monthly fees, no minimum balance, and more.
4. Get Comfortable Reading Account Statements
It's a smart idea to review your account statements on a regular basis to ensure your finances are on track and there are no transaction errors. You can receive your statement as a printed version that comes in the mail or digitally online. It typically includes your account balance, loan due dates and payments, account transactions, interest rates, and more. This will help you know exactly what is happening with your money and also alert you to any fraudulent transactions or errors that may occur. With technology today, banking and keeping track of your activities is at your fingertips 24/7. Using tools like mobile banking is a great way to stay on top of your money management at any time.
5. Building Credit Now Will Help Frame Your Future
Recent grads should understand the importance of a good credit score and should start early to ensure this by making smart financial choices. Paying your bills on time and creating an excellent payment history will allow you to reap the benefits of an excellent credit score for when it comes time to open a credit card or buy a car or home. The better your credit score, the better interest rates you could be eligible for, and with that, you'll have loan opportunities available when you need them.
6. Save for Emergencies
Learning at an early age to save your money for unexpected emergency situations could really pay off in the long run. It's ideal to have three to six months’ worth of expenses in your savings account to rely on should unexpected things come up. This will avoid running up balances on a credit card and will go a long way to get you out of a bind when you need it most.
7. Don't Be Afraid to Ask for Help
Don’t be afraid to ask questions when it comes to advice on financial and money issues. Asking your parents, a trusted friend, or even someone at your local credit union who has experience in paying bills, getting loans, and building a strong credit history can give you great money management tips that can help you develop the necessary skills to help you achieve financial success.
A bright financial future is in store for savvy young adults who take charge of their finances now by learning how to properly save, spend, and budget as well as understand credit. Smart planning and a better understanding of money management in your younger years is one of the best things you can do for yourself because it will help you achieve financial independence and meet your money goals now and later in life. Contact Peach State today to find out more about our Xtreme Teen Checking Account or to get answers to any financial questions that you may have. We are always here to help!