The Five Foundations
McKenna Zuleger and Paige Kaiser
First Foundation: Save a $500 Emergency Fund
This will change as you get older. After schooling this should expand to a full three to six months worth of expenses. You will be prepared for any unexpected expenses and have a sense of financial security.
Second Foundation: Get Out of Debt
Ideally, you would not get into debt in the first place. If you are though, it is important to try and get out as quickly as possible. The longer it sits, the larger it gets. Once you are out of debt, you can start building wealth.
Third Foundation: Pay Cash for Your Car
Set up a sinking fund to help save up for your car. This way when the time comes to buy it, you won't have to take out loans and go into debt. You won't be making car payments each month like most people are. If you pay with cash right away, you won't pay as much in the future with interest.
Fourth Foundation: Pay Cash for College
College is very expensive so it is important to set up a sinking fund. Hopefully your parents have saved money for your college but if they didn't then it's important to pay what cash you can and take out minimal loans.
Fifth Foundation: Build Wealth and Give
Building wealth gives you financial stability and the ability to retire with dignity. After you're out of debt it's important to start doing this right away. Once your money starts working for you then you can give. Pick a cause that you feel strongly about and donate to that.