Money Tricks
Based on 12 Principles That Every Young Person Should Know, from The Jump$tart Coalition for Personal Financial Literacy.
Take the time to list your money goals, along with a working plan for achieving them. Think of it like a road map. You can go to the places you want to without a road map. But not on the first try!
Beware of ads, sales people or other sources of financial offers promising anything free. Like non-financial opportunities, if it sounds too good to be true, it probably is.
The higher the interest rate being offered to you, the higher the risk of losing some or all of the money you invest. No one will pay you high interest rates on a sure thing! The best way to protect yourself from risk is to diversify your investments.
Before buying high-price items, look at how much of your paycheck you're actually going to be able to spend. That would be your net income, (or take-home pay), which is gross income minus deductions such as for taxes.
Ask your credit union to help you compare the interest rates of different investment accounts. You'll get the best value for the money you want to save or invest.
Before you pay your bills and other money you owe, put aside an amount you can afford each month. Save it in separate credit union accounts that you've set up for long-range goals and emergencies.
Want to figure out how long it will take for your money to double? Divide the interest rate into 72. For example, an account earning 6% interest will double in twelve years (72 divided by 6 equals 12).
Did you know that you have a credit report? It's kept by different credit bureaus that record your history of repaying loans. Negative information in credit reports can affect your ability to borrow at a later point.
Your total savings are determined both by the interest you earn on those savings and the time period over which you save. The sooner you start saving, the more money you'll be able to gather over time.
When you're ready to buy your first car, make sure you have auto insurance to avoid being wiped out financially by an accident. Make auto, and as you get older, other insurance part of your sound financial plan.
Create a yearly budget to organize your income and expenses. Include savings as one of your expenses. Use your budget as a guide to help you live within your income.
If you borrow money, repay it according to your promise. This shows that you are worthy of borrowing again in the future. Before you borrow, look at your budget to make sure you can afford the amount required to repay the new loan.
Next...
True or False: Andrew Jackson had a scar on his head for the majority of his life.
Click Andrew's head for the answer.
TRUE: He received it a punishment from a British soldier for not cleaning the soldier's boots.
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When you're ready for a loan, other members' savings will be there to help you out at the lowest possible cost.