If you take a small survey and ask financial advisors in your area the courses the schools need but are lacking most on, the answer you will get almost 100% of the time is “money management courses.” And with good reason as you find that many young Americans have trouble managing their finances. The reason behind this is simple, they lack the basic money management skills. And these are the same skills that they need if they are to learn how to pay off their loans quickly and fully and also start saving money for retirement.
Most American teens lack the necessary knowledge and skills to help them track their monthly spending and stay ahead of their financial situations. Luckily, this article has compiled a list of money management tips that you can adopt as a teenager at an early age and see your finances fall in line.
1. Manage your monthly payments
Start by managing your monthly incomes and expenditures. Ensure you know what your monthly budget is, your rent and mortgage payments, gas and grocery bills, student loans, etc. Great financial advisors advise that you double up on your loan payments. You can also sign up for and use an automatic payment program which will save you time and money every month. Monthly payments will be automatically deducted from your checking and savings accounts to pay off your loans.
2. Track your spending habits
You can also develop the habit of checking your credit card statement from time to time. Look at your balance and confirm that everything adds up. You can also use one of the many spend analyzer tools available online to track your spending. This is the easiest way to know where exactly your money is going and by how much. Some spending analyzer tools even categorize your spending so you know where more of your money is going and whether you need to do some adjustments. Tracking your spending also helps you prevent any fraudulent activity from occurring in your account without your knowledge. All the more reason to be checking your credit card receipts.
3. Check your credit report
You also need to be checking your credit report from time to time. Remember, your credit report can and will probably affect the kind of Northcash loan you need in the future. That’s if you will be looking to apply for one. Your credit report also shows a detailed summary of accounts like loans, credit cards, and other lines of credit under your name. Meaning that your credit score needs to be accurate at all times. Any false information can land you in big trouble either by the law or even be the main cause why your future loan application is denied. So, ensure your credit report is always up to date and accurate to avoid such inconveniences.
4. Audit yourself
Sometimes, it pays a great deal to look at your spending especially on a quarterly basis. This enables you to see if there are ways with which you can also cut back on some of your spendings. And put the extra cash into your savings and investments. You can even use the extra cash for debt repayment. Call it hitting two birds with one stone.