(StatePoint) If you’re like many young adults, you’re turning to social media and online influencers for money advice.
According to Experian research, Gen Z and millennials are not going to financial organizations for information or to shop for financial services as a first step. Among those surveyed ages 18-44, the go-to source of information is an internet search, while only about 30% of respondents overall go to a financial services company. Industry experts say that you should be cautious about information found on these channels.
“Learning good financial habits early can set you up for long-term success. It all starts with the right knowledge from trustworthy sources,” says Rod Griffin, senior director of Consumer Education and Advocacy for Experian.
No longer just for credit information, Experian now offers many other tools and features that can help you improve your entire financial life every day. Like a supportive friend, Experian aims to be your BFF — in this case, your Big Financial Friend — who you can lean on to improve many facets of your financial life.
Now, the company is sharing these financial tips with young adults:
Start building credit: Credit is a powerful tool that can help open doors, from renting an apartment to buying a car or even landing a job. The key is to use it intentionally. First, consider opening a secured card or credit card and use it for small, manageable purchases like gas or groceries. Then, pay it off in full each month. This helps you build a strong credit history and shows lenders you’re a responsible borrower. If you’ve never had a credit card or loan before, you might not have a credit report yet. At Experian, you can establish an Experian credit report with no history and start building a credit profile right away.
Check in on your credit report and credit score: Reviewing your credit reports and credit scores regularly is one of the smartest habits you can have.
Stick to a budget: Budgets are not about restriction. They’re about giving you the ability to plan ahead, avoid unnecessary debt and reach financial goals. You don’t need anything fancy to get started. Use a budgeting app, spreadsheet, or even a notebook to track spending and adjust as needed.
Face student loans head-on: Log into your loan servicer’s website to review your balances, interest rates and repayment terms. Missing payments can hurt your credit scores and lead to long-term financial stress, so make it a priority to pay on time, every time. When possible, pay more than the minimum to reduce the total interest you pay over time, and become debt-free faster.
Think ahead: It might feel early to think about retirement or homeownership, but small steps now can make a big difference later. Begin by setting up a savings account, emergency fund, or retirement or brokerage account. Contribute what you can, even if it’s just a little each month, to prepare for the unexpected and get on track for long-term success.
Don’t leave free money on the table: When you secure your first post-grad job, take advantage of employee benefits, like 401(k) matching, a health savings account and student loan repayment benefits, to maximize your finances.
Go to trusted sources: Whether you’re just starting out or looking to build a stronger financial foundation, Experian offers tools, education and products designed to help you take control of your financial future. To access these resources, visit experian.com.
“Everyone can benefit from accessing credible financial information, especially young adults just starting to manage their money. Getting educated and using trusted sources will help you make informed financial decisions,” says Griffin.
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Photo Credit: (c) Kar-Tr / iStock via Getty Images Plus
