25 Money Management Tips for Young People
9. Start Building Credit
Although it seems counter-intuitive at first, it does become a necessary evil for a young adult to take on some debt to show that one can manage it well. This helps build a credit history and earn the bet credit score possible. Combined with the young person’s credit report, the financial track record that the person will ultimately use to request funding for a home or other large purchase will be grounded in the history from these early years. The total length of one’s credit history accounts for up to 10% of the overall FICO score depending on the model being used. Another big component of the credit score is how much total money one owes, so it is important to watch out for maxing one’s credit each month.
