Growing up, you spend your days learning new concepts and gaining the knowledge that will help you succeed in life. Recent surveys, however, have revealed that many people are lacking the basic financial skills to thrive as adults. As with any skill, knowledge isn’t the ultimate goal. Financial literacy must be practiced in order to serve you well as an adult. At Central Bank, we support the young members of our community with specialized banking products and the advice you need to be successful. It’s never too early to start practicing good financial habits that will benefit you throughout life.

High School Habits

For many, the high school years are filled with forays into adulthood. You may take your first job and start saving for a car. Big expenses such as college and paying your own rent may loom on the horizon. Here are some of the best steps you can take in high school to start building a foundation of financial freedom.

  • Start Saving: As soon as you find yourself with an income, whether it’s an allowance or paycheck, consider opening a savings account. Setting aside any amount each month, big or small, will create a healthy habit for life. Central Bank’s student savings account can help you get started.
  • Learn About Debt: What are the consequences of carrying debt? Did you know that creating debt on a credit card or with a loan will end up costing you more money down the road? Be smart while you’re young — don’t spend money you don’t have.
  • Plan for College: Speaking of debt, student loans are a burden that will chip away at your future salary. Among the Class of 2018, 69% of college students took out student loans and graduated with an average debt of $29,800. Take time to research your college options and find a college you can afford. You’ll thank yourself later when you’re enjoying your paychecks without the burden of debt.

 

Building Confidence in College

Now that you are living on your own, you probably find yourself with some new expenses. College is a great time to practice the financial skills that you’ll need to be successful when you graduate.

  • Make a Budget: Budgeting is simply looking at your income and expenses and making sure you’re meeting your financial goals. There are numerous budgeting apps, such as Mint, if you need help getting started. A budget is an important tool that reflects your financial situation and helps you take control of your spending.
  • Track Expenses: Another important financial skill is identifying where you can save money in your daily routine. Make a list of your fixed expenses, the things you can’t easily change like rent, utilities, gas, and groceries. Then make a list of discretionary expenses such as dining out at restaurants, entertainment, and shopping. When you know where you spend your money, you’ll know where you can cut back if you find you’re spending too much.
  • Build Credit: Having good credit means you’ve built a financial history showing that you can be responsible with money. One of the easiest ways to do this is by paying a credit card bill in full and on time every month. A checking account with a history of no overdrafts is another way to show fiscal maturity. At Central Bank, we offer our student checking account as a great way to get started. Building good credit will help you qualify for an apartment, get a car loan, or buy a house.
  • Make Long-Term Plans: It may seem like the distant future, but graduation day will eventually come. Take time now to identify some future goals. What will you need financially to achieve these goals? A student savings account is a great way to start putting aside money for long-term goals. Not only will you create a great savings habit, you’ll be one step closer to achieving financial freedom.

 

Postgraduate Goals

If you’ve created good financial habits, you should be enjoying that new paycheck and have an account dedicated to long-term savings goals. Don’t ruin your hard work by overspending. Keep up your good habits and tackle this new phase of life with confidence.

  • Save for Retirement: While saving for a new car or first home may be forefront in your mind, don’t forget that you’d like to retire one day. Have some fun researching different long-term investments. However you decide to save, creating a separate retirement account will provide peace of mind when you’re older.
  • Starting a Business: If you’ve got the entrepreneurial spirit, this might be the time when you decide to start your own business. Your good credit and savings habit is going to pay off as you transition these skills to starting and running a company. As your community banking partner, Central Bank is ready to help with a variety of business banking products. We specialize in helping local business and look forward to seeing your business idea come to life.

 

Supporting Your Financial Journey

Whatever your stage in life, we at Central Bank have the products and services you need to create and maintain fiscal health. It’s never too early to practice good financial habits. If you have questions about savings, banking or investing, our friendly associates are here to help. Contact us or visit one of our locations in Houston today to see how we can get you on the road to a bright financial future!