Financial intelligence is paramount for youngsters who want to achieve success and financial freedom early in life. This is because youngsters who make smart financial decisions at the beginning of their career ladder have better savings, fewer debts, emergency funds and other financial perks as compared to their counterparts.
Following are some proven financial tips for youngsters:
- Practice Budgeting: One of the most useful financial tip is to learn how to budget. Budgeting helps you keep a tab on your incomes and expenses. It makes it easier to allocate funds for important things such as education, bills, grocery, etc.
- Open A Savings Account: A savings account is one of the best modes of saving money for future investments as well as for achieving both long-term and short-term goals. You may consider being a member of the credit union as you will be entitled to many benefits and privileges reserved for members only.
- Plan Ahead For Retirement: Start saving for your retirement while you are still young. You can be a part of an employer’s plan for the same. Such plans require you to contribute a portion of your income towards retirement goal.
- Pay Off Your Debts Systematically: Start paying off your debts by getting rid of the smaller ones initially and gradually building your way up to the larger debts. This is referred to as the ‘Snowball Method’ and is great for keeping you motivated and focused. Take on a new debt in extreme cases only.
- Build An Emergency Fund: It is important to keep aside some money in your emergency fund. So, if you start building your emergency fund while you are young, it will ensure that you have a substantial amount down the road.
- Reduce Expenses: A great financial rule that can do wonders for youngsters is to minimize unnecessary expenses. Start by trimming off expenses that are futile and repetitive in nature. Eventually progress to cutting down expenditure on more meaningful yet avoidable items.
- Manage Raises: When you get a raise, use it judiciously. Instead of spending it for leisure, you can either use it to pay off a long pending debt or save it.
- Educate Your Children: Teach your kids the value of money at an early age. Embed it in their malleable minds that saving is not an option but a necessity. You can even take them to a nearest credit union and motivate them to open their own savings accounts.
Greater Central Texas Federal Credit Union is a not-for-profit financial cooperative that operates for the common benefit and welfare of its member-owners. For more information, visit 3305 E. Elms Rd., Killeen, TX -76542 or call at (254) 690 – 2274.