Money Management: How To Avoid Mistakes
Being a young adult means you have more opportunities to earn money than you did as a child. Over time, you’ll also have more access to financial tools such as a checking account, credit card, auto loan, mortgage and more. But all of these products come with a huge responsibility, and lots of people make expensive mistakes when they’re starting out. Here are some common mistakes to avoid in the future.
Overdrawing a checking account. Imagine that you have a checking account and one afternoon you accidentally overdraw your account by buying lunch, filling the car with gas and going to a movie. With an overdraft fee for each item, you could end up paying a lot of extra money. If you have a checking account, it’s important to pay close attention to how much money is in the account. Setting up overdraft protection may also be a smart move.
Overspending on a credit card. Credit card purchases add up a lot faster than most people expect. So do the interest and fees. Soon you could be facing a mountain of debt. Before you get a credit card, talk to your parents and agree on guidelines about how much you can spend on the card and what types of things you should charge. After you get a card, each month review the bill carefully and pay the balance in full.
Failing to protect your information. Misplaced debit cards, sharing account numbers and passwords, and tossing personal information without shredding it first all raise your risk of identity theft. You can learn more about how to protect yourself at www.ftc.gov.
Forgetting to save. Saving money is a great idea at any age. When you’re an adult on your own, you’ll need savings for the down payment on a car or home, to cover emergency expenses and to make your other financial goals come true.
We can help you make the most of your money and avoid mistakes. Contact us today to learn more.