Some millennials don’t have the necessary understanding of how to manage their finances. Too many young adults start their 20s off on the wrong note, having already borrowed money for their education and starting out with little savings. The good news is that even if there is a small amount of income coming in for these young adults, there are still ways they can make a positive impact on their financial situation.
Get a free checking account
All too often, some young adults get stuck in the cycle of depositing a check into their accounts, letting it overdraft and then paying hundreds of dollars each year to the banks in fees. If you’re having trouble keeping a positive balance in your account, find a bank that offers free checking accounts. NerdWallet compiled a list of best free checking accounts to help you save the money in your account, and not to the banks. When opening an account, check to see if you have the option to avoid overdraft fees by not allowing transactions to go through that would put you in the red.
Check your accounts
Now that you have an account check it frequently. Keeping track of where your account stands is a good practice to start soon so that you continue to do it later in life. Checking your balance will allow you to see where you stand, and adjust your spending accordingly. Know when bills are due, how much is due, and the online sign-in information for each account. This monitoring will help you stay on top of your bills and start making a difference in the amount you owe. Even if it’s something you dread, checking these accounts is always much better than avoiding them entirely.
It sounds like a concept that would only be available in the future, but beginning to save money as early as possible will help these millennials down the line. The savings account can be as small or as big as it’s able to be, and you don’t have to make these deposits to savings all the time. Avoid spending money on something that’s between $20 to $50 per month and keep it instead, putting it into a savings account.
Negotiate student loan pays
It goes without saying that if you have student loan debt, you want it to be gone as soon as possible, but if you’re unable to pay the amount that the debtors set for you to pay, you can call and negotiate the monthly bill amount. Once you start getting on the right path with your finances, you can always increase the amount you’d like to pay.