Categories: Budgeting
Maybe you’re a parent who wants to instill financial literacy throughout your child’s life, or you’re a teenager looking to maximize your after school job and plan for college. Perhaps you’re already a young adult and want to ensure you get off on the right financial footing as you enter the working world. Whatever situation is closest to yours, creating early habits is critical to financial success and security. Like other good habits, many of those pertaining to your financial future are easy to start and easy to maintain with just a bit of planning and determination.
Habit #1: Get started early
Good financial habits can start anytime, but the earlier the better. Even if you “only” have a babysitting job, take some of your earnings and put it in your savings account or even invest it. Saving and investing can begin at any time, from the first check a baby gets from Grandma to a first job out in the “real” world. The concept of “paying yourself first” is an important one to learn and practice early to ensure long-term financial success
Habit #2: Lead by example
Show, don’t tell. If you’re a parent, demonstrate to your kids how to create habits. Let them hear budgeting conversations and see how you make decisions at the grocery store between differently priced products. Show them that you sometimes need to say “no” to things both they and you might want but don’t need.
Habit #3: Find financial mentors
You can find financial mentors in many parts of your life–parents, teachers and local financial institution staff are all good places to start. Ask questions about finances and involve these mentors in your financial plans and dreams so they can advise you on the best next steps throughout your journey.
Habit #4: Live within (or below) your means
This habit is the foundation to any financial successes or failures you might have throughout your life. The good news is, it’s pretty easy if you understand your finances and track your spending, both of which you can conquer with a bit of planning. From your very first job, look at your take-home pay and build your daily budget around 90% of it (so if you’re making $1,000/week, put $100 into savings and calculate your living expenses based on the rest). As your savings and investments grow, your financial security and options will also expand
Habit #5: Stay educated & informed about finances
Whether you read books, listen to podcasts or follow financial influencers or blogs online, staying up-to-date and knowledgeable on money matters is a great early habit. As you understand more about borrowing, basic money management, investing and other financial topics, you’ll be able to incorporate them into your life and make sound decisions for your financial future.
Another good early habit is getting a checking account to help manage your income and expenses.
Sign up for an online checking account – a new way to bank!