24 JUNE 10, 2021 RIDGEWOOD TIMES WWW.QNS.COM
GRADUATION
Five tips for teens to avoid debt
they had started as early as I did in
getting the money thing right,” said
Johnson. “I would tell any teenager
if they have the opportunity to take
part in Money Matters or any other
financial literacy program, take
it. You’ll learn simple steps for saving,
and your future self will thank
you!”
To help and inspire other teens to
take steps to master fi nancial literacy,
Johnson off ers her top fi ve tips.
RESPECT THE POWER OF
CREDIT
You know how teachers, parents
and other adults are always saying a
bad decision can haunt you for years?
That’s defi nitely true with credit. Bad
money habits, like maxing out your
credit card or making late payments,
will show on your credit report
almost right away. Then, it takes
seven years before that disappears
from your credit history. That can
mean paying higher interest rates,
being turned down for a loan, or
not getting hired for a job you want.
The good news is, being smart with
money helps you avoid the credit
trap. These remaining tips will show
you how.
BE A SAVER - IT’S NEVER
TOO EARLY TO START
What’s the best way to avoid using
credit cards? Build a savings cushion,
so when unexpected costs come up,
there will be no need for a credit
card. Starting now, any time money
comes in - your paycheck, babysitting
money, birthday cash from grandma
- the very fi rst thing you should do is
pay yourself. Tuck some of it away,
and watch those dollars add up.
Someday, that money will be there
for you when it’s time to buy a car, go
to college or rent an apartment. The
pride you’ll feel from watching your
savings grow is priceless!
NEVER START THE
MONTH WITHOUT A
PLAN
There’s no substitute for planning.
At the start of the month, sit down
and list everything you will need to
pay for in the coming weeks. Think
about how much you have, what your
paycheck will be, and then, do the
math to make sure you have enough
to cover it. This doesn’t have to be
complicated, just a simple list you
keep on your phone so it’s always
with you. Then, check in with your
monthly plan once every week or
so, and make sure everything’s on
track.
SORT OUT NEEDS VS.
WANTS
Here’s the tough part. Your favorite
band is coming to town, and
all your friends want to catch the
show. But your phone needs a new
battery, your car has a flat tire and
insurance is due. It’s so tempting to
cave and raid your savings account
so you can do it all. These choices are
never fun, and this won’t be the last
time it happens. But remember, your
spending plan will be meaningless if
you don’t stick to it. So yes, there will
be times when you’ll need the conviction
to say no. That said, make room
in your budget for the fun things, so
you can feel great about times like
these when you want to say yes.
STRETCH YOUR DOLLARS
You work hard for your money. Let
it work hard for you! Before you buy,
shop around. Compare prices online,
wait for a sale or download a digital
coupon. Or if you’re grabbing lunch,
skip the beverage and ask for ice water;
then put that money into savings.
Smart money moves like these can
leave you with a little extra and make
it easier to keep it all in balance: your
needs, wants and savings. When you
stay in control of your spending, it’s
that much easier to avoid debt.
Creating good financial habits
early in life can help you achieve
your goals. Follow these tips, and
you’ll be well on your way. Parents
or teens who’d like to learn more
about the program should check
with their local Boys & Girls Club,
or visit the Money Matters page on
BGCA.org and take advantage of this
resource.
— Courtesy of BPT
Back in the day, most people
learned how to manage their
money through the school of
hard knocks. That’s still true. But today’s
young people face much larger,
higher-stakes fi nancial decisions at a
younger age than their elders.
For example, in 2018, the average
college graduate faced $29,200 in
student loan debt - the highest it’s
ever been - according to a new report
by the Institute for College Access &
Success. And recent data from TransUnion
shows that more than half of
people ages 18 to 24 who have a credit
card are carrying a balance on it.
It’s clear teens need help making
sound money decisions. One fi nancial
literacy program pairs teens
with volunteer mentors to create
hands-on fi nancial learning. Money
Matters: Make It Count was created
in collaboration between Boys & Girls
Clubs of America and Charles Schwab
Foundation and is celebrating its 15th
anniversary. Young people have gone
through the program a million times
since it started.
Tamara Johnson served as a former
Money Matters ambassador
in Santa Fe. Johnson, who earned
college scholarships and now practices
family law, credits the program
for giving her the foundation she
needed to take on the responsibilities
of adulthood. As a result, she’s
debt free!
“While I was an ambassador, so
many adults told me how they wished
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