Factual Friday: Personal Finance

    This is typically something you’re not supposed to say out loud, but I love spending money. We’re all familiar with the saying “money doesn’t buy happiness” which is true, it won’t fill an emotional void. However, there is definitely a joy that accompanies a new pair of boots, a fresh set of nails or a really good meal. The only problem is, most of us are not yet working a full-time job, thus, balling on a budget. And when you Google “Personal finance tips for young adults,” the first result to pop up says, “learn self control.” Like, you’re not wrong Google, but really? That was the best you could come up with? So here’s what we’re gonna do, I’m gonna read through these articles, ask some smart people in my life (shoutout Naomi), use my own brain, and we’re going to figure out some tips that are, objectively, more helpful. Welcome to Factual Friday: personal finance edition. 

(Photo from pexels.com)

    At this point I should probably clarify a couple things. Personal finance, is of course, personal. Meaning, everything I’m saying is situational and if it doesn’t apply to your situation, don’t do it! Second, there is still a lot I don’t know about personal finance; I am currently a full-time college student so I cannot advise on how to handle a real salary or how to invest your money. This is just going to be some tips and tricks on how to handle money in high school or college, based a lot on my own personal experience. 

    Tip #1: Budget 

    This is probably kind of obvious but it’s definitely worth saying. Because the word budget sounds so official and formal, it can be easy to forget it’s applicable to literally every situation. You want a new wardrobe for Spring? You need new art supplies? You’re planning on seeing your favorite team play when the pandemic has died down? Budget! Your! Money! Budgeting your money is for any expenses period, not just the “adult” expenses. Budgeting your money can take many different forms. It could look like actually moving money around in your bank account; maybe you put aside some money from Checking to Savings. If you don’t have a credit or debit card yet, or you just like using cash, you could physically put aside some money in a safe location. You could make lists, you could make spreadsheets, you could even use apps like PocketGuard, GoodBudget and Truebill, to name a few. When budgeting your money, try to be as realistic and honest with yourself as possible. If you love spending money on nice meals, that’s your prerogative, but make sure you set aside the money for that. 

    Tip #2: Cut down costs where you can 

    Instead of getting a Grande at Starbucks, get a Tall. Next time you have to take a plane, bring your own snacks instead of buying expensive airport food. It’s not a huge difference in money but those few dollars saved here and there will add up. You can also download apps to help you save money like Honey and UNiDAYS. Honey is a free browser extension that finds and applies coupon codes to your cart when you’re buying something online. UNiDAYS is an app in which you can search brands and find coupons for them; basically like Honey except you do the work yourself.

    Tip #3: Stay on top of where your money goes 

    No one likes looking at their credit card bill but it’s really important to know where your money is going. And, even more important to know if someone made a mistake with your money. Make a habit of looking through your bill to ensure that everything looks right. It’s happened to me a couple times where I’ve found out I’ve been overcharged for something by looking carefully through my bill. Once, I even caught a credit card thief that way, they used my card to buy $60 worth of fast food! 

    Tip #4: Am I really going to use this?

    This a question I ask myself often, to make sure I can justify purchases. It helps me figure out what would be an impulse buy and what would actually be a valuable purchase. If I can and will use it often, great! That’s a justified purchase! However, if I can’t see myself using/wearing it more than once, I tend not to buy it. Obviously there are some scenarios in which one can justify buying something they only use once, like a prom dress, but usually this is a pretty useful rule. You can do the same thing with food by asking yourself, “Do I really need this or do I have food at home?”

    Tip #5: Creativity goes a long way 

    Again, I don’t mean to state the obvious, but we have so much easily accessible information. Between Google, TikTok and Pinterest, you can find a lot of ways to DIY a lot of different things. Often this is a cheaper solution to buying something so it’s definitely worth looking into.

    Remember, all of this takes practice. As unhelpful as my Google search results were, it does take self control and discipline to manage your personal finances. Managing money is tricky, so don’t get down on yourself when you inevitably will make a mistake. We’re all still learning and ultimately, experience is the best teacher. 

And with that, I wish you a Factual Friday and a fun weekend!

Xoxo,

Zoe