With the passage of college examination season, college grads are about to embark on a new phase of their life journey.
It is important that college grads develop positive money habits. And as part of that journey, getting a job and earning an income will feature in a big way. But, since financial education is still not part of the national curriculum in schools or at college, we wanted to share a few important money tips to help them along their way.
Their relationship with money matters…a lot! This is not just about how they manage their money…it is how it can have a big impact on day-to-day life decisions in the future. Financial services use a credit register to track how people borrow and repay loans and that information is being increasingly used to make employment, property lease, insurance premium rates, credit and even some hospital admission decisions based on a credit score. So, if they borrow money, make sure they make repayments on time and as agreed. If they fail to do so, this can have a major negative impact here in Ireland and beyond!
Income is extremely precious – protect it! One's ability to earn an income is their most valuable resource. But since time is limited, so will be their ability to earn. So the key is ensuring they maximize their earning ability and protect their income. One way of achieving this is by tracking their spending and having a plan to save. But to make this a little easier, consider the rule of 50:30:20. 50% for life needs (shelter, food etc), 30% for wants (live a little) and 20% for savings. Yes, get into a habit of saving. The sooner they do, the sooner they will not miss that extra cash…or spend it!
Pay off debt quickly – and this piece of advice does not just apply to student debt, it goes for all debt. Remember, the longer one takes to repay debt, the more it will cost in interest charges!
Remember, your relationship with money will be really important. Learning to put your money to work for you instead of the other way around is a proven method of how successful people have built some wealth.
With the passage of college examination season, college grads are about to embark on a new phase of their life journey.
It is important that college grads develop positive money habits. And as part of that journey, getting a job and earning an income will feature in a big way. But, since financial education is still not part of the national curriculum in schools or at college, we wanted to share a few important money tips to help them along their way.
Their relationship with money matters…a lot! This is not just about how they manage their money…it is how it can have a big impact on day-to-day life decisions in the future. Financial services use a credit register to track how people borrow and repay loans and that information is being increasingly used to make employment, property lease, insurance premium rates, credit and even some hospital admission decisions based on a credit score. So, if they borrow money, make sure they make repayments on time and as agreed. If they fail to do so, this can have a major negative impact here in Ireland and beyond!
Income is extremely precious – protect it! One's ability to earn an income is their most valuable resource. But since time is limited, so will be their ability to earn. So the key is ensuring they maximize their earning ability and protect their income. One way of achieving this is by tracking their spending and having a plan to save. But to make this a little easier, consider the rule of 50:30:20. 50% for life needs (shelter, food etc), 30% for wants (live a little) and 20% for savings. Yes, get into a habit of saving. The sooner they do, the sooner they will not miss that extra cash…or spend it!
Pay off debt quickly – and this piece of advice does not just apply to student debt, it goes for all debt. Remember, the longer one takes to repay debt, the more it will cost in interest charges!
Remember, your relationship with money will be really important. Learning to put your money to work for you instead of the other way around is a proven method of how successful people have built some wealth.
Make your money work for you!