7 Tips to Building Your Financial Foundation the Right Way in High School
Building your financial foundation
Start with a solid foundation and your financial skyscraper can go as high as you can build it. Start weak, and your financial skyscraper will be limited. Start unsound, and the first major hiccup will threaten to collapse it. Here are the tips to build your financial foundation the right way while in high school.
1. Get a Job, Even if it’s Part-time
We recommend this for a number of reasons. One, you can begin to gain valuable skills for adulthood, such as learning new skills, collaborating with co-workers, meeting deadlines, and keeping a schedule. Getting a part-time or summer job will also help you to begin gaining independence .
2. Open a Savings Account
If you don’t have an account, it will be important to establish one in order to begin building a relationship with a bank or credit union. Building a relationship with a lender will be important when looking at opening credit cards or taking out loans, especially if you’re just beginning your financial life and have little credit history.
3. Start Building Savings
Once you have some money coming in and have established checking/savings accounts, we recommend you focus on building up some savings. You can store money in either a checking or savings account, but we recommend having both and putting money in savings every month.
4. Make a Budget
While you should at least loosely budget your money throughout your life, budgeting and sticking to that budget is especially important when you don’t have a ton of money coming in and little savings.
5. Make Some Long-term Goals
Once you have some income, have opened checking/savings accounts, begun to save, and built a basic budget it’s time to set some goals. What do you want in the near and far future? Do you want to attend college? Buy a car? Own a home?
6. Begin to Build Credit
At the same time you begin making goals and thinking about how you will need to structure your finances to reach them, you should also begin looking to start building credit. Every individual has a credit score that follows them throughout life, and is the measuring stick lenders and other institutions use to assess your financial responsibility.
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