As graduates begin college or adulthood, money expert Steven M. Hughes from Know Money Inc shares tips to help form a good financial foundation.
Congratulations are in order for many high school students that will walk across the graduation stage this Spring.
As graduates begin college or adulthood, money expert Steven M. Hughes from Know Money Inc shares four habits that will help them form a good financial foundation:
- Map Your Money: You’re in the driver’s seat of your finances now and it’s important to know how much you need each month and make a plan. Write down your fixed expenses, variable expenses, and your savings goal each month.
- Strengthen Your Sources of Income: Self-awareness is important here. Assign a value to your interests and skills that can help or benefit someone else. Are you a great violin player? Consider tutoring younger students a few times a week at an hourly rate. Are you a great artist? Set up a website where customers can purchase your current paintings.
- Set Your Financial Goals- We often hear the general financial advice to “start saving early”. To accomplish this, high school graduates should create financial goals and use resources like Qapital and Smarty Pig. These easy-to-set-up services automate deposits into your savings account and help you create a great habit. Setting your financial goals will also help you create a breathable spending plan that works.
- Take Your Credit Seriously: Make your payments on time to avoid collection agencies or late payment notices showing up on your credit report. 35% of your credit score depends on your payment history with another 30% determined by your credit utilization, or how much available credit you use on a monthly basis.
