Thought this would be a good idea for a thread. Schools don't really teach young adults about personal finance and that results in a lot of people learning from their own mistakes out in the real world. What have been your experiences with managing money and personal finance? Did your parents walk you through the basics? Is building an emergency fund a priority for you? If you're like me, do you frequently use credit cards? Do you prefer miles or cash back? Has a low credit score held you back from a big decision? I'd love to hear about fellow users' experiences! Let's dish!
Did your parents walk you through the basics? Yes. Is building an emergency fund a priority for you? No. I haven't the means to do that anyway, and it isn't important to me. I'm currently living on student loans, and homelessish over the summer (sleeping in my tent, or at friends, or occasionally in parks). In other words, I can manage without money if I have to. If you're like me, do you frequently use credit cards? Do you prefer miles or cash back? I don't have a credit card, though technically all of my money is debt. I stay within the budget allowed for me by the loans I get. Has a low credit score held you back from a big decision? I don't really intend to make such decisions.
Did your parents walk you through the basics? No. My mom's shit at managing her own finances. Watching her tell me all the time that she "got lazy" and didn't make the house payment or she doesn't have a lot of money and then proceed to spend a few hundred dollars on things we don't need has been a huge learning experience of its own, though. Is building an emergency fund a priority for you? Yes, but not particularly high on the list. I usually end up burning through it. If you're like me, do you frequently use credit cards? Do you prefer miles or cash back? I have one that is supposed to be for emergencies only but gets used quite a bit for larger purchases. I like my cash back. Has a low credit score held you back from a big decision? I don't know what my credit score is. Hasn't mattered, since being unemployed is a bigger problem.
I'm going to have to. My savings right now wouldn't be enough to sustain someone beyond a couple months, and I'm not touching my stocks under any circumstances. That scary period between college and employment is looking even scarier.
Is an emergency fund important to me? All my money is under one account so not really. I'm not old enough for a credit card. I don't have a credit score.
I've never really talked about money with anyone.. though we did have some money management lessons in secondary school. Nothing too convoluted though. The only thing my mother ever told me - never get a credit card. I have a debit card, so I can only spend what's there. My mother declared bankruptcy about 10 years ago, so I have an inkling of what not to do.. I try to save a bit of money, but I'm not really in a position to save a lot and I usually end up spending whatever's there. When I graduate and start working full-time, I'm more interested in starting payments for my pension - which is actually another thing my mother said I should do as soon as I was able to.
I don't want to talk about my student loans. It was necessary to loan money in order to be able to pay rent, tuition fees etc but I dread the day I have to start paying it back. Don't have a credit card anymore, because I never used it, but now I live abroad I kind of want to get a new one for things like plane tickets or renting a car. Trying to buy a plane ticket without a credit card is hell. With my current salary I don't make enough money to save something. I'm always happy if I make it to the end of the month :lol: but then again I'm not holding back on things like going out or buying some new clothes or sneakers every now and then.
On a lighter note, I always remember my mom listening to this song: [YOUTUBE]MX7MbG6MiQs[/YOUTUBE] Someone needs to make my dad listen to that...
My parents didn't want me through the basics because as a young child I was always fascinated with money (even majored in economics haha). They would buy me books on money, but didn't really "teach me" because I already know more than the average adult at the time. I bought my first stocks at 14 or so. Yes, a big chunk was GM and I lost it all, but it was a good learning experience. I don't have an emergency fund, per se, but have cash and cash equivalents if needed. I do want an emergency fund later on. Don't use a credit card but would prefer cash back. Don't really fly. Low credit score? Don't really have much credit haha. Will try to establish some soon.
When I get a glut of work, I take advantage of it and earn what I can then buy everything I need and save the rest. I've never had a credit card and never had a loan.
I learned how to pay rent and shop for groceries while living at my grandma's... sadly they don't teach this in school. When I have children.... those little shits are gonna be street smart and book smart. XD
Very bad and very good. Got out of college with a boatload of student loans (although not on the scale that people face today, I think - maybe about $40,000 or so). Worked some sales jobs and found I suck at it. Worked retail and hated it. Along the way racked up a lot of debt, mostly credit cards. Had the same car repossessed twice. Credit counseling told me I was somehow spending $300 more a month than I was making, said they couldn't help me, and suggested I get a loan from my parents (pause for :roflmao::roflmao::roflmao::roflmao: :eusa_doh: - I was making way more money than my parents and I wasn't making much). Was on such a chummy basis with the collections departments of some credit cards that when I moved to VA with no idea of what my new address was they just asked that I contact them when I got here. Which I did. Got a job I liked. Met my husband, who is very VERY good with money and credit. Under his guidance paid off all the credit cards, the student loans, etc. These days we have savings, retirement accounts developing nicely, a financial adviser, and my credit score is north of 800. Not really, no. I kinda sorta knew how to balance a checkbook when I left home. That was it. I don't have as much in my personal savings as I would like, but between us my husband and I could probably not work at all for a year or two with what is in the combined accounts. So, not so much. Also, we have lots and lots of open credit if we need it. I put nearly every purchase on a card and then pay it off completely (or nearly so) every month. I don't care about miles or cash back, prefer the convenience of using a card issued by my bank so I can manage all my accounts on one website. Nope. During the lean years, I never checked my credit score. My husband has a credit score that makes most merchants practically wet themselves with joy. Mine is somewhere in that space now, I think, but not really looking to make any major purchases right now, so not sure. Here's my experience, Todd
Thanks for sharing everyone! I've been there, hun! It's always good to start early. Connections through professors are what helped me get my first job. Good luck! Hi hun! I see you're in college. I got my first credit card when I was 19, it was actually a student credit card through Capital One. Those are the easiest accounts to open that can start helping you build credit. Secured credit cards are other options you can consider as well. I actually have 9 now :eek: But I keep them under hawk eyes xD Ouch, bankruptcies are tough. I don't think you should be too scared of opening a credit card though. If they're managed responsibly, they can actually be pretty useful. Cash back and other rewards come to mind LOVE it! Yaaas! Preach hun! Thanks for sharing hun! I'm glad you were able to sort things out. And an 800 credit score? That's quite an accomplishment :eusa_clap I'm still trying to see how I'm going to rein in all of my student loans in. It's a shame college has to be so expensive, even with scholarships!
This has frustrated me more and more. When was the last time I had to calculate the circumference of a circle or an angle? No idea, probably when I learned those things in math class. When was the last time I had to do taxes? Now, exactly 1 year after the last time, but they never taught that in school! Stupid. My parents didn't really teach me anything about math, except money math. I did learn how to budget in school, which has been helpful. I have 3 bank accounts right now, my Japanese bank account, and a chequings and savings account in Canada. My accounts in Canada have a few thousand dollars in them combined, and I've got a nice little cushion in my Japanese account. I am super lucky and have no debt, having paid off my previous-no-longer-active credit card and my student loans. I also have 0 assets and can't get a credit card here (possibly due to age? not sure). I also completely blew through an inheritence, mostly on rent, food, and satisfying my first [jackass] bf, but also a bit on school which is the only part I don't regret (I won't even tell you how much money it was, I'll want to cry). That was a hard practical lesson in what not to do.
I wish schools did teach how to budget and general finance. Something actually useful. Did My parents walk me through the basic's of finance. Yes sort of. Growing up I was always around when my Mother calculated out monthly bills. I was also always given a budget for things that I wanted before I got a job in high school. There was never a this is how to finance talk. Just learned by watching. I try to put back money for things like repairs/ anything that comes up. I aim for 5%, but don't always hit this. Student loans are a pain! Can't wait until these are paid off. I have several credit cards that I use. I pay most of the balance off each month. Also, put most on my rewards cards that way I can get the cash back. Don't really need the miles. Don't fly commercial that often. My credit score has never impacted a decision that I've made.
My parents set a really good example and we've talked a lot about money. I don't have a credit card. I prefer to use cash whenever possible. I don't keep all my cash in one place. I don't gamble. I'd never agree to a joint bank account. I don't lend money to anyone. Well, except that one time I asked my dad to sign a contract in order to permit him to take a specific amount of money and buy a new TV on my behalf. He still jokes about it! Maybe it's changed now, but my high school didn't provide much information about managing personal finances. However, they did give us work experience, and I enjoyed that that way more than school. I started my first business project near the end of high school. It sounds more impressive than it really was because I was basically washing cars!
