How to achieve your financial goals

Alicia, Maria, Brock (Team Blue)

Introduction

In order to achieve your financial goals you must know how to manage credit and debt responsibly. At certain ages you might not have the resources to do so.

Stage 1: High School Student

As a high school student you may not know much about credit and debt. You also may have limited financial experience or resources and no credit score at this point.

  • If you have a job you should probably own a bank account. When opening a bank account you should learn about the different type of banking accounts (Certificate of Deposit, Savings, Checking etc.) and figure out which one is the best for you. Same thing applies when applying for a credit/debit card. You should read the contract the card bring, rules and the fees
  • When having loans for college you should learn how to manage your debt. When managing debt you should keep your debts and pay them on time.
  • Opening a checking account can help you build a credit score be cause it can get you a loan or a credit card. Also put 1 or more utilities under you name.

Stage 2: College Student

As a college student you have a job, bank account, credit/debit cards, and bills. You may have education loans and car loans. You should start saving money so after college you can pay off these loans.

  • When paying bills and bank accounts regarding credit/debt, PAY ON TIME. ALWAYS. It will help you maintain a positive credit.
  • When buying a car make sure you can afford to put down at least 20% on the car. You must understand all the terms of the loan, pay the monthly payments, and put as much money down. Same thing also applies with an education loan. Try to get the shortest time period you can manage and no more than 48 months.
  • Save and invest as much as you can. Don't waste your money on things that won't matter later on in the future.

Stage 3: 22-50 year old adults

As a young adult you have regular incomes through a career. You also have living expenses a car, and bank accounts. You may be paying off education loans and hopefully started saving for retirement. You may also have started a family and have all those expenses as well.

  • You must understand that paying off your debt can increase credit score and creating more opportunities for loans in the future.
  • Try to pay off your loans as soon as possible
  • Use your credit for good things such as a house or car, education, and your health. Not on paying for household expenses, buying a very expensive car, or creating a new loan to pay for the old one.
  • To protect your credit score pay off all your expenses on time.

Stage 4: 50-70 year old

As older/seniors you usually are at the high point of earning income. You also have the same living expenses but saving and investing as much money for retirement. You may have accumulated a fair amount of debt in loans and credit cards which need to be pay for before retiring.

  • You can invest for retirement by buying stocks. You can also put your extra money (if you have some) into your retirement. Continue filing you taxes so you can receive tax benefits.
  • When paying a lot of debt try looking for sources that will help you accomplished this.
  • To protect you credit score pay all your expenses on time and loans.
How to manage your credit report and debt