3 Personal Finance Steps to Take After High School
Personal finance is an important part of every adult’s life in one way or another, and it’s a great idea to get a head start on your journey by taking your first steps as soon as you graduate from high school. Today, we are going to explore 3 steps you should take as soon as you can to get started on your personal financial journey and why they are so important.
#1 Get Your Own Bank Account
It’s likely that you already had some sort of bank account in high school because you may have had a job or had your parents set up an account for you. However, the account you had in high school was registered by your parents or guardian who will still have access to it, even once you become 18 and are capable of handling everything yourself. Setting up your own account without anyone else having access to it gives you privacy over your balances, and what you may be spending money on. Additionally, it protects your money from being taken in the event of someone else's account being compromised.
#2 Get Your Own Credit Card
As long as you understand the costs and benefits of credit card use, it’s an excellent idea to set up a credit card as soon as possible. Not only will you be able to enjoy the benefits of having a credit card like purchase protection and reward points, but you will also start building a credit history which will be needed for future purchases. Much like the bank account, set out to have this account be made only in your name so the access and activity doesn’t get tied to anyone but yourself. You may have a small credit limit at first, but the sooner you start, the better!
#3 Get Your Own Investment Account
This is one of those things that I wish I could have when I graduated high school. Despite having an education centered around finance, I didn’t have the foresight to open up my own separate investment account very early on. With all the mobile applications that allow you to directly deposit money from your bank account and invest commission free, you can easily get some of your money in the market and start learning about investing.
While everyone’s experience with personal finance is different, the one thing that everyone has in common is that there is a process of learning about the topic and how your life fits into it. Like many learning processes, the sooner you start, the better!