I was thrilled to be a guest expert for Experian's Credit Chat on Wednesday, July 31st. The ten questions asked made for an excellent discussion, and frankly, a great post. Here are ten questions and answers for navigating your finances after high school.
What are key financial responsibilities to consider immediately after graduating high school?
Your financial behavior is tracked, scored, and has real consequences.
Protect your digital footprint: you are your own greatest asset.
Credit can be a dangerous weapon or asset building tool. You are responsible for using it correctly.
Social Security is dead. Retirement is your responsibility. Begin investing ASAP.
Vehicles are awful assets. They destroy wealth.
How can young adults establish a budgeting system to effectively manage their finances post-high school?
Budgeting is more about managing our behavior than our money. Set up a money management system that makes saving automatic and spending more inconvenient.
Here are a few examples in our post, Why Budgets Do NOT Work.
What role does understanding credit and personal finance play in helping young adults establish healthy spending and credit habits?
Benjamin Franklin said it best:
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Why is it so important to begin establishing a strong credit history from a young age?
A strong credit history can lead to…
✅ better loan rates
✅ more high quality credit products
✅ easier approval for rentals
✅ lower insurance premiums
Starting early allows for more time to build a positive credit record, benefiting long-term financial health.
What are the benefits of starting to build an emergency fund as soon as you are earning a paycheck?
You can automate savings with your first paycheck by splitting the deposit into checking at one FI, and savings at another. Or you can auto transfer from checking to savings!
We rely on Raisin to identify the highest yield savings accounts. Click here to learn how you can open an account today.
What are practical tips for finding affordable housing options and managing rental expenses after high school?
Hands down, the best hack is to find roommates to share expenses. When selecting a roommate, consider:
👉 Lifestyle: Does their way of life jive with yours?
👉 Responsibilities: Can they pay their share of rent and bills on time?
👉 Compatibility: Will you get along living together?
How can individuals explore different avenues for generating income, such as part-time jobs, freelancing, or starting a side business?
Whatever direction you choose, consider using the free resources provided by the SBA to help you every step of the way.
What resources or tools are available to help young adults track their expenses, monitor financial progress, and plan for the future?
We LOVE Tiller! It's safe and easy to use, and all your transactions are automatically downloaded into easy-to-read sheets. You also get a daily email with a review of each financial transaction from all of your linked accounts.
Click here to learn more about Tiller.
How can learning about basic investing principles and savings strategies benefit individuals as they transition into independent financial decision-making?
If there's one simple rule that every single person should understand, it's this:
Go to Investor.gov to calculate your compounding investment returns over time.
In what ways can setting up retirement accounts and planning for the future contribute to financial stability and security post-high school?
This is me screaming from the rooftop…
Invest as much as possible, as early as possible, and keep investing. Automate your investing, buy low/no-cost index funds, and fully utilize employer matching programs.
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