If you've already got your own personal finances in order and have begun to build a solid credit history, I applaud you. But if you're anything like me, you're terrified that your limited cash will quickly disappear in a slew of hidden fees and interest rates. Or worse, that you'll loose track of your spending and go completely bankrupt before you hit 20.
My credit-wary friends, I would like to introduce you to two helpful tools I've recently discovered to help take a bit of the fear out of financial planning:
First is the how-to guides in the Wall Street Journal's personal finance section. While they may not be completely comprehensive, the guides at least help break down daunting financial tasks (like picking out your first credit card) in laymans' terms. It's simple, but the important thing is that it at least gives you some direction and understanding. I chose the article about how to get a good deal on your credit card for this article, but there's a variety of information to access on this site.
My next little wonder is Mint.com, a financial planning site that manages all of your finances simply by syncing with your online bank account. You don't even need to know you account number to get yourself started. As you can see, I'm still kind of working on the details of my account, but the budget feature that you see here is pretty ingenuitive stuff. It automatically subtracts any purchases made on the debit card hooked up to your checking account from the budget category (e.g., I spent $56 at Target, so it automatically subtracted $56 from the Shopping category - don't ask me how it knows).
With tools like these, pursuing a personal credit card seems a lot less daunting.
I really didn't know what kind of tools are out there, i applaud you Bridgett for making these items well know. I wanted to start building my credit score, and the first article helped figure out what would be best to look for in a credit card. The second is such a helpful comilation of functions that im thinking about opening my own account it sounds fantastic. E.
ReplyDeleteThis is good information for young adults such as ourselves. It's never too early to start thinking about your credit score because it follows you for your entire life so mistakes when you're young can hurt you for years to come. Thanks Bridgett for showing me these useful sites. E
ReplyDeleteI always felt weary of investing into tools and companies that help manage my finances. My mother worked at Chase bank, so she always warned me about frauds and companies that just want to take more of your money--not manage it. I find that if you invest your time into the bank which your money is in, they will help you manage it just fine.
ReplyDeleteE
I got my first (and only) credit card about six months ago. I really only use to pay for things online, because it is insured. I also have a debit card which I think is much better to use because it takes the money directly out of your bank account, so you really can't spend money that you don't have which can prevent you from getting into a lot of fnancial trouble.
ReplyDeleteThe credit card plan that I have is through Bank of America. My card is called the Student Platinum Plus Card (Visa). I have a limit of $700 a month (and i NEVER EVER spend that much). I hardly ever use my credit card because it can be a bad habit, but when I do it is really simple to make sure that the money youve borrowed from the bank is payed back. Having online banking is extremely useful; So, when I make a purchase with my credit card I simply go to my personal finance site and transfer money from my checking or savings account directly into my credit acount and once the transfer is made I have nothing to worry about. :)
Before getting a credit card it is really important to have done ALL your research because not all credit cards are the same.
This is interesting info to know. I am still a bit wary though of these new structures that are put in place to help us manage our finances. How often do they update up on our recent spendings? Is it completely "free"? Its funny and cynical of me to think like this but.... what if these so-called help companies have some possible ways of taking a few cents from your spendings? Imagine them taking about ten cents for each of your purchases or something and multiple that by the millions of clients they have and their spendings per day. Millionaire in the making. Am just thinking stuff.... its possible though.
ReplyDeleteTo a shopaholic person like me, it is not a good idea to carry a credit card with me when I go shopping with my friends, but in China, the limitation of your credit card is depends on your income which you have to fill some forms to apply for a credit card. But I really prefer to use debit card now, the young adults like us may hardly hold there saving if we use credit card. It is really usefuly article! E
ReplyDeleteThese tools seem very interesting and helpful. I should look into using these online banking tools. I have a debit card and credit card as well. I use them both, (but not that much because money does not grow on trees) but I like to use my debit card more because it takes it directly out of my account. It is still nice having a credit card so I can build up my credit and make online purchases. (A, E)
ReplyDeleteThanks Bridgett this online tool that you should us is very helpful when it comes to managing a credit card. I really afraid of getting a credit card and suddenly falling into debt before even graduating but this tool is a great help, although it doesn’t mean I am going to get one anyways. Having a debit card is more convenient for me because it helps me manage the money that I have now and not go over. With a credit card interest has to be paid at a certain rate which I will owe more than I would actually be using and that means that I would have to pay extra when I can simply wait to purchase what I want when I have the money.(E, A)
ReplyDeleteIt's interesting that I read your blog today because as of this afternoon I became a car owner!
ReplyDeleteIn choosing a car insurance to sign a policy with I had no clue what to look for let along what type to purchase. However, I made my decision based on what I could realistically afford and that would benefit me most at a level that was affordable. This goes back to the marginal change and marginal benefit theory in chapter 1.
Yes this may or may not be the best decision in the long run but at the present time this is what is best for me. I can't afford full-coverage so I decided to go with no-fault. However, the incentive that influenced me to sign a policy with State Farm is the incentive of a free renters insurance policy.
It is tough times for everyone in the financial area but what works for me is being rational and thinking at the margin. Principle 3 states that rational people systematically and purposefully do the best they can to achieve their objectives, given the opportunities they have. E & T
I'm going to put off getting a credit card as long as I can. I've had a debit card ever since I started working 2-3 years ago and it's worked out fine. There's no way I can get stuck with fees I don't know about as long as I keep track of my balance, and I'll be alot less tempted to spend more than I have (and less tempted to procrastinate, telling myself I'll save up the money to pay credit card bills.)
ReplyDeleteCertain parts of this article reminded me of this clip from SNL, so I figured I'd post it. It definitely makes me happy that I have a debit card instead of a credit card.
http://www.hulu.com/watch/1389/saturday-night-live-dont-buy-stuff