Money Lessons to Learn Before You Turn 20

Think back to when you were 20 years old — how much did you actually know about financial responsibility? We’re guessing you didn’t know all too much. Unfortunately, not much has changed in terms of young people knowing how to properly manage their money. Whether you’re the parent teaching your kids or the kids trying to gain some wisdom, these are some money lessons to learn before you turn 20.

You don’t need to accumulate debt to build credit.

While having loans and responsibly paying them off helps build credit, you can also get a very basic credit card with a small monthly limit. As long as you don’t charge too much and pay off your bill on time, you can build your credit without drowning yourself in too much debt. Important: Debit cards do not help your build credit, so stop assuming they do.

Choosing the right kinds of student loans can save you money.

Remember these two words: subsidized and unsubsidized. Subsidized federal student loans don’t charge you interest while you’re in school, which can save you a lot of money in the long run. And when it comes to private loans, try to make them a last resort since they may not offer the same perks as federal loans.

A healthy lifestyle can equal a healthy wallet.

Think about how much money you spend on food and drinks each month? If you decided to cut back on ordering takeout and going out, you could save potentially hundreds of dollars a month, not to mention give your body a break from all that unhealthy junk.

Identity theft can affect anyone, so stop losing your debit card.

It’s not just inconvenient to lose your debit card or ID while you’re out — it’s dangerous. Anyone can find those cards and use them to wipe your bank account clean or open fake accounts in your name. If that happens, forget building credit — yours could be ruined. Make sure to always secure your personal cards and also avoid putting any personal information online as much as you can.

At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From managing your cash to 529 savings plans, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.