If you haven’t thought about it already you should be thinking about it now. What you plan to do with your money. That’s if you even have any yet. My young adults, you should be planning to open up a bank account, think about starting a credit history, and being cautious about debt. I would like to share with you all the beneﬁts of these and ways to avoid some. I ran across a couple of resources and tips on getting and managing a bank account.
One resource from Westchestergov.com, mentioned that opening a checking account will make it is easier to pay by check or online instead of a money order when paying bills or any expenses you have. Also, it’s good to know that your money in the bank is insured so if there was anything to happen you will be covered, but only up to a certain amount.
One resource said up to 100,000. A bank account will accumulate interest, which means your money will grow as you save. Isn’t that nice?! But you have to save. In saving you are preparing yourself for any disasters or accidents that occur in your life and your family’s life as well. Yes, it is good to consider your family when it comes to money. People may struggle or face obstacles ﬁnancially within your family and I suggest you support them because they have supported you. Another thing to think about is when you save you are able to spend money on whatever you want if you budget it well. In saving, I would recommend you save 10 percent from every paycheck and then gradually increase if you can. In addition, having a bank account can make it easy for you to get a credit card.
Now, having a credit card is not gold, but it is necessary to build your credit history in America. In building your credit you will have the opportunity to own a house, get a car, plus it makes it easy to rent apartments. Everyone checks your credit so make sure it’s good!! Please be careful though in using your credit card to not overspend and collect debt.
I would advise that you pay more than your minimum balance but not pay it off too soon to keep your credit increasing. The reason why you should pay more than the minimum is that interest is added to your credit and when you pay the minimum balance you not paying much of it off. They don’t tell you this so please ask plenty of questions. It is good to ask questions for all of what I discussed in this article to make sure no one puts anything past you and that you understand all they tell you. You are all capable of any and everything in life just believe in yourself and use all your resources.
[Monique Thompson Bachelors in Psychology California State University Northridge (CSUN)