Money Management Tips for Young Adults
5 Crucial Personal Finance Tips for Generation Z
Want to set yourself up for financial success? Start as early as now with these 5 money management tips for young adults.
Gen Z has officially started entering the workforce. Similar to the previous generation of millennials, Gen Z carries with them student loans and an unfavorable economy. Young adults can jumpstart their financial journey with these tips.
1. Budget, Budget, Budget
A budget is the most basic key to managing your finances. With a budget, you make sure all bills are paid and all expenses are accounted for. It minimizes instances of overspending and impulsive shopping. Young adults should develop the habit of budgeting their money before they fall into a cycle of debt.
2. Prioritize Yourself
As a young adult, you probably have a lot of goals –you want to pay off your students loans, travel, buy new gadgets, etc. These are all well and good but do not forget about yourself. Save some money as an investment in yourself for the future. Allot as little as 1% or as much as 5% of your life savings which can serve as your retirement fund or help to pay for other goals like a postgraduate degree or a business.
3. Save Up for Emergencies
In addition to saving up for your future, you also need to safeguard your financial health from unexpected expenses. It’s not advisable to dip into your savings every time your car needs repairs or if you ever find yourself without a job. It’s a good idea to have at least six months’ worth of emergency savings. If that’s a large amount, you can fund your emergency savings with our ACCESS LOANS TM employee loan programs.
4. Stay On Top of Your Bills
Payment history, or how well you pay your bills, has a major impact on your credit score. Missing payments on any of your bills become a negative deduction on your credit score. So, always pay your bills on time. If you could pay earlier and pay in full (such as in credit cards) do so.
5. Build Your credit, Carefully
As a young adult, you are probably still building your credit. Staying on top of your bill is one way to increase your credit score. Another way is to establish a credit mix. Getting a credit card and keeping the utilization rate at below 30% and paying off your bills on time are good. Likewise, getting a personal loan from an employee loan program could be an affordable and secure way to build your credit. We report your payment history to the top credit bureaus so responsible payers will surely see an improvement in their credit score when they apply for a loan.
Learn more about ACCESS LOANS™ loan products.
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