Part of being young is making mistakes. But, that doesn’t mean you have to make financial mistakes. In fact, saving money when you are young can often lead to a better financial future.
The best time to begin saving money is when you are fresh out of college and get your first job. According to a recent study by the National Association of Colleges and Employers, the average starting salary for bachelor’s degree graduates in 2012 was $44,259 – which means putting away money now from each paycheck won’t cramp your lifestyle.
The first step is to start a savings account. Starting one is easy, and it can be really useful, especially if combined with a reloadable prepaid debit card to help control your spending. Once the account is set up, we recommend you transfer 10% of your salary to a savings account. You’ll be surprised how much this won’t affect you (especially when you’re younger and with less financial responsibilities), and how quickly it can turn into a few thousand dollars in just a year. In addition, you can get a KAIKU® Visa® Prepaid Card to load your monthly spending budget so you won’t have to worry about overspending.
You should also start paying off any credit card debt you may have. And don’t just pay the minimum amount required. Try to pay off as much as possible. If that’s not an option, then shop around for other credit cards that have low APRs and transfer your balance to another card. Whatever you do, just make sure that you don’t get penalized for not making a payment and jeopardizing your credit score. If you start saving and spending wisely, you can overcome a substantial portion of your debt within the first 5-10 years after graduation.
So, start using a reloadable debit card today. We are sure that you will find it makes spending and saving easier, so that you can live the life you want, while also securing your financial future.