Dollar smart
Careful planning and taking advantage of bank programs key to financial successBy BRANDON VOGRIN Tribune Chronicle correspondent
It is common for people, especially younger people, to have financial problems because they are either bad at managing their funds, or they simply don't know how.
"With gas prices where they are now, it is getting harder and harder to budget my money," said Bowling Green graduate Bill Daugherty of Bazetta. "I don't know when to spend my money and when I should save money."
Woodforest Bank, located in the Wal-Mart SuperCenter off Elm Road in Bazetta, offers incentives for recent graduates to open a checking or savings account. Graduating high school students receive a gift basket filled with things they may need for college.
Sonya Thompson, manager of Woodforest Bank, says she likes to handle new accounts with younger customers personally.
"I like to have either me or my assistant manager sit down with younger customers opening new accounts and show them the difference between a savings and checking account and how to write a check and balance their account."
Thompson says that the biggest problem she has noticed with young people managing their accounts is the misuse of their debit cards. Most people tend to use their debit cards everywhere without keeping track of how much money they have in their checking account.
"Most young people don't keep a register of their account," said Thompson.
By keeping a close eye on your account balance when using your debit card, there is no need to pay penalties for overdrawing your account.
Seven Seventeen Credit Union, based in Howland, is currently putting together a program for 18- to 25-year-olds, which, according to Eric Lanham, marketing manager, offers ''financial products geared toward their unique needs.'' Beginning this fall, the program will build on the Dollar Dog and Cha-Ching programs currently in place at Seven Seventeen for children and teenagers. Lanham said the new service will include a Web component as well as information about saving for your first home, buying versus leasing, and saving for a wedding.
Another service Seven Seventeen offers to all its members is the Balanced Financial Fitness program, which allows members free access to financial counselors for advice about preparing a budget, debt management and managing credit scores and credit reports.
Unlike those in middle age, people 30 years old and younger tend not to be concerned with saving money for their future and figure that there is plenty of time to save later. The average college graduate entering the job market for the first time has never had the amount of money they are now getting and are quick to blow it on things they don't need.
Budgeting is an important way to help you spend money that you need to spend and save money that will help you gain financial stability for the future. You can visit many banking Web sites for hints on how to best budget your money.
Chase Bank's Web site has many tips about budgeting. According to Chase, you should first compare your total income with all of your expenses, trying to keep your expenses as low as possible. Now decide what expenses you can eliminate, but be sure to keep some things for fun. Think about what you tend to overspend on and avoid these things. Maybe cut cable television, eat out less, or turn down the air or heat in your home to save some extra money every month.
Everything that you saved by cutting back on non-essentials should be put into your savings account, along with a set amount from every paycheck. It is important for young people to pay themselves first from their own paycheck. The money won't even be missed after making it a habit to save it, and having a solid savings account is the cornerstone to financial freedom.
Chase Bank's Web site suggests that you set aside 5 percent of your paycheck to save and add money to it when you can. When you eliminate a regular expense, take the money you would normally use to pay that and add it to your savings.
Saving for college is definitely a daunting task considering the constant rise of college tuition. According to Huntington Bank's Web site college tuition prices have risen 6.6 percent in the past year. Huntington.com has many suggestions on how someone should begin saving for college. Begin saving early in life for college, and save early for your children's college education. The sooner you start saving for college, the easier it will be to pay for it when the time comes.
It is never too early to benefit from investing your money. When considering investment opportunities, first decide what your goals are. Buying a house or making another special purchase are short-term goals that don't call for aggressive investing. However, if your plan is to attain wealth through investing, then investing more aggressively is for you. Be sure to make a goal and invest early and as much as you can afford, but make smart investments and be sure to consult with a financial adviser.
Talking to a financial adviser at your bank is a great way to start managing your money better. Some banks even have promotions for young people who are looking to open an account and start their financial future.
For more information on how to better manage your money, visit a financial adviser at your bank, or look on banks' Web sites.
