More and more school districts are bringing financial literacy into the classroom to teach a new generation how to be financially successful and stable adults. However, many students graduated from high school without an education in finances before the implementation of financial literacy courses and many still aren’t getting it today.
Miranda Marquit recently shared her “7 Financial Moves to Make in Your 20s,” on the personal financial blog Money Ning. The following are a few of Miranda’s tips for those who might have already made young financial mistakes and how to dig out of them.
Live within your means
Miranda says she spent her early 20s engaging in instant gratification, which came back to haunt her in her later twenties as debt. Making a budget is an easy way to stay within your means. Every month you should compare your income and expenses and see if there are any areas where you can whittle down the spending.
Pay down debt
Did you know the average college student has $4,138 in credit card debt alone? When you get the monthly bill, don’t set it aside if you can’t pay it in full. Make at least the minimum payments on all your cards. If you have multiple cards with multiple interest rates, pay off the one with the highest interest rate first by making that payment higher than the rest.
Develop a savings habit
Old habits die hard. If you’re not saving in your 20s, you probably won’t be saving in your 30s, 40s, 50s, etc. Miranda suggests making your monthly savings deposit part of your monthly budget.
Establish credit
Do you want to buy a house? Do you want to RENT a house? A good credit score is important step to getting you in the door. Did you know more employers are looking at prospective employee’s credit score? A credit score can say a lot about people’s lifestyle and priorities. If you want to increase your credit score, consider getting a credit card or taking out a small loan. The rule is that you have to pay everything back in full every time the bill comes. If you don’t, loans and credit cards will have an adverse effect on your credit score.
What is some of the best financial advice you’ve received? Do you have any experience using any of these tips? Share your story in the comment box below.
Sources:
Marquit, Miranda. “7 Financial Moves to Make in Your 20s.” February 16, 2010. Money Ning. Accessed on August 25, 2011. <http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/>
