Rashmitha
What strategies can help me be financially stable early on?
I've noticed my parents always struggling with finances due to their spending habits and lack of financial understanding. I want to avoid this for myself at all costs and was wondering how I can implement good saving and financial habits early on to avoid falling into the same debt situation myself. I want to live without worrying about money but also have the ability to spend on wants occasionally. I will start college Fall of 2025 and I will be paying for college all alone with perhaps some financial aid from college because of cutting contact from my parents and not having parental support for separate reasons. However, I still want to make good financial decisions so I don't spend my life in crushing loans and debt. I have no knowledge of finances, cards or banking related stuff, so I would love to learn all there is to know.
3 answers
Isabel Dominguez
Isabel’s Answer
To lay the foundation for financial stability at an early stage, begin with self-education on the subject of personal finance. Get to grips with budgeting—monitor your earnings and outgoings to manage your expenditure effectively. Initiate a savings account at a bank and utilize it to accumulate an emergency fund. Steer clear of unnecessary debt by comprehending interest rates and exercising caution when using credit cards. Look for resources on financial literacy on the internet or at your prospective college. Prepare for college costs by applying for scholarships and grants. Contemplate part-time employment or internships to acquire experience and boost your income. Establish financial objectives, give priority to savings, and revisit your budget occasionally to make necessary adjustments. Cultivating these good habits today will lay the groundwork for financial security in the future.
Garrett Kennedy
Garrett’s Answer
Torin Hamlett
Torin’s Answer
Maintaining a sound financial life is crucial. A piece of advice that always resonates with me is, "It's not about the quantity of money you earn, but rather how you manage the money you have." Keeping a written budget is a practical way to keep track of your spending habits. Whenever you're about to make a purchase, no matter how small, it's wise to check your account balance first. This way, you're aware of exactly where your money is going. As your financial circumstances evolve, your budget should adapt accordingly.
The topic of credit is another significant aspect. Good credit can be a lifesaver in times of need, while bad credit can exacerbate an already challenging situation. I suggest that students consider getting a starter credit card to cultivate good credit habits from the start. Keep it straightforward - make one purchase with the credit card each month and ensure it's paid off in full. This practice will help you learn how to handle credit responsibly and avoid future issues. Whenever you borrow money, it's essential to have a repayment strategy in place.
When it comes to banking, many banks offer free accounts for students, so you shouldn't be incurring any banking fees. I would advise choosing a bank that provides excellent online or mobile banking services, as this can assist you in managing your budget effectively. It's also beneficial to have both a checking and savings account. Make it a habit to deposit a portion of each paycheck into your savings account to accumulate an emergency fund. Ideally, you should aim to have at least six months' worth of expenses saved as a safety net.