Debit Cards V Credit Cards
When you’re under 18, you’re lucky! You can’t get into trouble with credit cards as you are under the legal age! But a lot of young people are encouraged to get credit cards when they turn 18! Beware as misuse of a credit card is one of the easiest ways to get into debt.
Let’s first look at the differences between the two. A debit card gives you access to your own money, so you are limited to withdraw or spend only as much as is in your account. When you turn 18...
Getting on with it
Ok, so your plan looks good on paper, but how are you going to make it work in practice?
Are you going to keep all of your money in the bank and visit the ATM when you need it, or would you prefer to carry it all around in your wallet? Everyone is different, but there are a few techniques you can consider, like the envelope system or the bank system.
Perhaps you'll come up with your own way of handling those dollars. Whatever keeps you on track with your budget is fine!
One thing you should always remember is that your goals, your cash flow and your budget are flexible with a capital F. You should review your financial game plan every few months, and add new goals to your list as they arise. Be sure to cross off the ones that you have reached too!
This may mean going through the strategy, cash flow and budgeting process (using fresh copies of the sheets you've completed) and making some adjustments.
Another good idea is to talk to mum and dad, or others around you who will encourage you with your financial game plan. Ask them to help you keep on track by taking a look at your budget and your strategies every now and then.
Be prepared to take their suggestions on board, and figure out whether they make sense using the same pros and cons process we talked about earlier.
You are in the driver's seat from now on, so go get 'em!
Now that you're a Wallet Wizard with your own money, let's look at other financial tools like bank accounts, loans and investments that can help you in the years to come.
