(BPT) - Being an adult is a learned behavior that takes practice. A key consideration for “adulting” is becoming financially savvy and it’s never too early to start building your financial knowledge. With this guide, students preparing to graduate into the real world can master the art of adulting one step at a time. In fact, taking control of your finances now will help ensure financial security throughout your life.
Ingredients of financial literacy
“It’s never too early to get started on your own financial journey. One of the easiest ways parents can teach their kids about money is to set them up with their own bank account, like Chase High School Checking or Chase College Checking,” said Matt Gromada, Managing Director, Head of Family, Student and Starter Banking at Chase. “It opens the door for important conversations and real-world scenarios about the basics of finance — from spending and saving to credit scores. By having these regular conversations, you can help set your child up for a strong financial future.”
To help get you started on that financial journey, here are three important things aspiring adults will want to consider:
Saving is safety: Saving is the foundation for financial security and independence. Start by putting money aside regularly, even if a small amount, because it’s never too early to start saving and there’s never too little to start saving. And, by starting to save young, it will become a habit that helps build that emergency fund sooner rather than later. An emergency fund can offer peace of mind for unexpected costs as you get older, such as a car repair or sudden medical bill. The easiest way to make it a habit is by automation. Chase Autosave lets you set up repeating, automatic transfers from a Chase checking to a Chase savings account. This simple transaction can help you build an emergency fund without thinking twice.
Begin budgeting: A budget, or a basic financial plan for your money, can help you understand your expenses and help you live within your means. To create your budget, you need to know your income, expenses and how much you want to save. Chase makes it simple with budget worksheets available to all. Enter your recurring income and expenses to see where your money goes each month.
Credit basics: Adults can establish and build good credit by managing your finances wisely. Having and maintaining a strong credit score and history is crucial. For example, credit score is a key consideration when buying a car or a house. Your credit score is based on how responsibly you manage your credit. The main elements of securing a good credit score are paying your bills on time, the length of time you’ve had a credit history, and the amount and kind of accounts you have. Potential lenders will use this information to determine your credit risk. Learning the basics of credit and how to improve your score early on will set you up for future success when you want to make larger purchases. Chase makes keeping track of your credit easy with the Credit Journey, which offers free credit and identity monitoring, including alerts to let you know if your data is exposed in a data breach or on the dark web.
With an eye on your future, these three elements are a great place to start your financial journey. Master these basics, and you'll be well on your way to successful “adulting.”