5 Personal Finance Tips You Must Know While You're Still Young
5 Personal Finance Tips You Must Know While You're Still Young
Many people who were fortunate enough to grow up and live under the financial shelter of their parents often did not think about their futures early on as they should have. It is such an advantage to have a solid grasp of basic financial concepts as early as possible so that one can be prepared to face the world with minimal shock. Here are 5 financial tips you must know while you're still young.
Pxhere
#1 Start as early as you can
When it comes to saving, earlier is always better. In Canada, young adults have the option to file a tax return and start creating contribution room so that once they have jobs, they can start contributing to their RRSPs. An RRSP is a great way to prepare for retirement and starting contributions that early can help you get ahead of the game. Make sure to plan out a budget that will help make it easier for you to set money aside.
SnappyGoat
#2 Understand credit cards
Credit cards can get you into a lot of trouble if you use them without understanding how they really work. They become especially dangerous when you start to rely on them too heavily—doing so can often send you down a hole of debt that can be difficult to get out of. If you own credit cards, make sure to watch your spending habits. Try your best to use debit for your transactions to avoid constantly borrowing from your cards.
Picpedia
#3 Life insurance is key
The benefit of buying life insurance while you're young and healthy is that you will enjoy low and affordable premiums. There are also several policies that have a grandfathering clause, meaning that if your health were to suddenly change, you would still be able to keep the insurance policies you took out when you were younger.
Pxhere
#4 Set your priorities
A car may seem like an easy investment, but it can get in the way of other financial goals you may have, such as buying a house. Think about it—a monthly payment of over $500 is what you would also need to save in order to afford a down payment on a house. It will be too difficult to manage two big purchases at a time, so it's important to prioritize which big expense comes first, and which of them can wait.
Quote Inspector
#5 Avoid impulse spending
Impulse spending is one of the easiest ways to rack up credit card debt. Once you have access to adult money, it can be tempting to spend it on things you want but didn't prepare yourself to buy. It may help to set some ground rules for yourself. For example: if something costs $200, wait two hours before buying it. Similarly, if something costs $400, wait 24 hours before buying it, and so forth. Anything that is genuinely worth having is worth waiting for.
StockSnap
Source
READ MORE
You didn’t get hacked. You didn’t have your card stolen. You sent the money yourself, because someone convinced you to. Now the bank says the charge was authorized, so there’s nothing they can do. Unfortunately, this is one of the hardest types of fraud to reverse, but “hard” doesn’t mean “impossible”.
You handed over your hard-earned money because you love your parents and you wanted to help. Maybe bills were piling up, maybe they said things were tight, and you stepped up without hesitation because that is what you do for family. Then you opened Facebook, and there it was—brand-new furniture, proudly photographed and shared for the world to react to. And something inside you shifted. Not quite anger, not quite heartbreak, but something sitting uncomfortably between the two. You are not imagining things. That stings. Before you fire off a message, cut them off, or swallow the whole thing in silence, let us talk about what is actually happening here and how to handle it without destroying your relationship or your own sense of self-worth.
Inheriting money from a grandmother can feel like both a gift and a responsibility. The situation becomes complicated when parents insist that the funds should be used for “family expenses” rather than personal plans. The central question quickly emerges: is the heir legally or morally obligated to share the inheritance? On one side stand clear property rights. On the other hand, expectations are shaped by loyalty, gratitude, and shared history. What begins as a private financial matter can turn into an emotional dispute about fairness and duty. The tension lies between individual ownership and collective family identity, making the issue far more complex than a simple transfer of money.
Florida's most popular retirement cities are getting crowded and expensive. But a quieter shift is happening in smaller towns across the state, and realtors are paying close attention to all of them.
Worried that turning 50 means the IRS will start taxing your 401(k)? Learn the real rules about 401(k) taxes, early withdrawal penalties, catch-up contributions, and when retirement income is actually taxed.
We review the reasons why it's standard practice at a real estate showing for the seller to be absent.
Disclaimer
The information on MoneyMade.com is intended to support financial literacy and should not be considered tax or legal advice. It is not meant to serve as a forecast, research report, or investment recommendation, nor should it be taken as an offer or solicitation to buy or sell any securities or adopt any particular investment strategy. All financial, tax, and legal decisions should be made with the help of a qualified professional. We do not guarantee the accuracy, timeliness, or outcomes associated with the use of this content.
Dear reader,
It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.
Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!
Warmest regards,
The Moneymade team
