College students and young professionals are faced with reality when it comes to finances that they might not be prepared for. Many young professionals are in debt due to decisions they didn’t quite understand they were making. Many college students are using credit cards that they don’t have the money to pay for. Credit, interest, taxes?! What do all these numbers and words mean!?
Here are some ways that you that are in your 20s can improve your financial health and become more financially literate.
Create a budget:
Know where your money is going and live below your means to save money
Create a savings plan
For example save around 20% of your income weekly to be prepared for the future
Look for lower interest rates
When looking to finance a car or get a school loan make sure you take time looking for the lowest rates. Remember the higher the interest rate the more you owe to the lender.
Make payments on time.
There are late fees and this goes on your credit report
Make a debt repayment plan
Put your payments on auto pay, slowly and surely you will have your debt paid off
Work on a credit plan
Get support from your accounting and finance majors for extra help.