Tip 1. Understand Where Your Money Goes
– Track your spending: Use apps like Spendee, PocketSmith Sidekick, Vault22, or a simple Excel spreadsheet.
– Categorize expenses: Divide your expenses into categories such as food, transportation, entertainment, savings, etc.
– Find your budget leaks: Identify small, regular expenses that add up, like daily coffee or impulse buys.
Tip 2. Start Budgeting Early
– Use the 50/30/20 rule:
– 50% for needs (rent, transportation, food)
– 30% for wants (entertainment, shopping)
– 20% for savings or debt repayment
– Automate your savings via a debit order.
Tip 3. Learn About Credit & Debt
– Understand how credit cards work: Only spend what you can pay off each month.
– Avoid high-interest debt, such as personal loans.
– Start building your credit score responsibly.
Tip 4. Start Saving & Investing as soon as possible
– Open a savings account for emergencies and aim to have 3-6 months’ worth of expenses saved.
– Learn about compound interest: The earlier you start saving, the more your money will grow. (Recommended book: “The Compound Effect” by Darren Hardy).
– Consider beginner-friendly investing platforms such as Easy Equities.
Tip 5. Invest in Yourself
– Pay for skills or courses that can enhance your income potential through Udemy and Coursera. An excellent free beginner course is ‘Financial Planning for Young Adults’ offered by the University of Illinois (https://www.coursera.org/learn/financial-planning )
– Follow credible financial educators on platforms like YouTube (Maya on Money), or through podcasts (Money Rules Podcast).
– Read popular books such as “The Intelligent Investor” or “The Psychology of Money.”
Tip 6. Set Short & Long-Term Goals
– Short-term goals: Save for a watch, holiday, or emergency fund.
– Long-term goals: Plan for a car, house, or retirement (The earlier you start the less you must save)
– Break down goals into monthly or weekly targets.
Tip 7. Surround Yourself with Good Money Habits
– Talk openly about money with friends to normalize the conversation.
– Join youth financial literacy programs (FSCA MyMoney Learning Series) or online communities.
– Follow individuals who inspire smart financial decisions instead of those who merely showcase flashy lifestyles.
– Avoid ‘too good to be true’ scams or ‘get rich quick schemes.
Created by: Sean Johnston, CFP® PROFESSIONAL
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