It’s Never Too Early

When it comes to learning good money management tips; it is truly never too early to get started. In fact, learning how to save and spend wisely when you are 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 how to properly spend and save it. Here are some basic money management tips to help savvy young adults make the most of your income even when you don’t earn that much yet.

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 keep your spending on track. You don’t have to make a lot of money to set financial goals. Any money management plans you make are a good idea and a great lesson in finance.
   
   
2. A Budget is Your Friend
   Learning to budget well when you are young will help you maintain your financial freedom as you build your life and get mortgages, car payments, IRA’s etc. Even with a part-time job while in high school or college, budgeting is crucial to ensure how to best spend your money so that you can afford everything you want and need. It can start as early as teaching your young children how to budget the allowance they are given and teaching them the importance of setting aside a little 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 credit unions and banks offer for their customers to utilize. 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. There are many local credit unions and banks that often offer checking accounts that are specifically created for young members. The Members Plus Rising Teen Account is a great option with not monthly fees, no minimum balance and FREE financial education as well.
   
   
4. Get Comfortable Reading Bank Statements
   It is a smart idea to review your bank statements on a regular basis. This can be online or via a printed bank statement in the mail and includes understanding your balance, loan due dates, all transaction types, interest rates, etc. 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 really is at your fingertips. Using tools like mobile banking is a great way to stay on top of your money management with the added convenience of being available 24/7.
   
   
5. Building Credit will Help With the Future
   Recent grads should understand the importance of a good credit score and should start early with smart financial choices to ensure this. Paying your bills on time and creating an excellent payment history will allow you to reap the benefits of an excellent credit score when it comes time to buy a home or car. The better your credit score, the better interest rates, and loan opportunities you will have 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 is ideal to have three to six months’ worth of expenses in your savings account to rely on should things come up. This will avoid running up a credit card and will go a long way to get you out of a bind when needed.
   
   
7. Know When to Ask for Help
   Don’t be afraid to speak up and ask for help when it comes to advice on financial and money issues. Parents or a trusted friend who have experience in the real world of paying bills, getting loans, and building a strong credit history can give you great money management tips that can help you develop priceless skills to help you succeed.

A bright financial future is in store for young adults who take charge of their financial future by learning how to properly navigate their finances now. Smart planning and a better understanding of money management in your younger years will help you achieve financial independence and meet your money goals now and later in life and is one of the best things you can so for yourself. Contact your local credit union today to find out if they have any programs that are specifically for young members.