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...
Strategy Time
Phew, another big step toward your game plan is complete! All the hard work is nearly done, and you've come away with a detailed picture of your starting point and your destination. Now let's find the best road to take.
If you add up the total cost of your goals (from your personal goal list (PDF)) and compare it to your total income (from your financial reality worksheet (PDF)), it's clear that your money won't stretch far enough to cover everything this week or this month…probably not even this year!
So how on earth are you meant to achieve your goals?
Earn More:
Maybe this is an option if your part-time job has more hours on offer, or mum and dad have some extra chores. But who wants to spend all their life working? What's really important is that you lead a balanced lifestyle, with time divided between study, recreation, work, and of course, rest! So don't go overboard – you'll be working full-time soon enough.
Spend Less:
This is probably also possible to some extent. Chances are, in recording your expenses you've already thought about where you can cut costs. But again, it doesn't make sense to become a hermit, or deny yourself everything.
Compromise and Prioritise:
Now we're talking. Attaining a lifetime full of goals is about deciding what's most important to you, and having the patience to work to a plan. It might mean waiting a bit longer for this goal, in order to achieve that one. The good thing about making these kind of decisions, is that you'll get heaps better at it with practice.
Start by exploring the options.
