Explore a variety of financial aid quick tips below, including info on credit scores, credit cards, budgeting, and more.

Set Your Goals

  1. Don't limit yourself. Work toward multiple goals in different time frames simultaneously. It builds momentum with each success.

  2. Short-term goals equate to three months or less.

  3. Intermediate goals are usually reached within the year.

  4. Long-term goals are plans that extend beyond one year. 

  5. Make your goals meaningful and write them down so you can see them often and integrate them into your everyday life.

  6. Set a goal, make a plan, and take action.

  7. Prioritize what's important and stick to your plan.

Credit Score Basics
  1. Check your credit often. Set up alerts to be notified of updates or changes to your new credit, including new/closed accounts, changes in credit score, or potential fraud.
  2. Closing accounts may hurt your credit score.
  3. Open a variety of credit types (revolving, nonrevolving, bank, and store accounts, mortgage, car, etc.) and establish a long credit history; be cautious in closing oldest account.
  4. Ideal credit score is 720+.
  5. Credit scores affect loans, credit card interest, and insurance rates. 
Credit Card Basics
  1. Compare cards and evaluate APR, annual fees, and card perks (earning rewards for usage).
  2. “Student” or “secured” credit cards are excellent options for first-time cardholders. Secured credit cards require a deposit for the credit limit, while student cards may require proof of student status for approval and access to low interest rates or no annual fee perks.
  3. Don’t use more than 30% of your available credit.
  4. Credit cards are NOT just more money; costs not paid each month will accrue interest above the original purchase amount. Consider the balance between needs and wants. 
Choose Your Budgeting Model
  1. Zero-based, allocating every penny to a budget category or savings account.
  2. 50-20-30: 50% needs, 20% savings, 30% wants/discretionary.
  3. Pay yourself first: allocating to retirement and savings as a priority category.
  4. Envelope system: allocating cash to envelopes designated for specific spending.
  5. Fundamentals of budgeting include tracking all income and expenses from a conservative approach (the least amounts you know you can count on) and having a plan for any additional income that might happen so it’s attributed to the right place (savings, retirement, emergency fund) immediately before it’s spent. 
How Much Is “Enough Money”?
  1. Keep total debt to no more than 35% of net income.
  2. Net income should be at least 3x housing costs.
  3. At least six months of savings for living expenses and a separate emergency fund.
Hidden Savings
  1. Monitor subscriptions.
  2. Compare insurance rates.
  3. Increase income, tighten budget.
Retirement
  1. Start now. Retirement accounts must have time to grow and move with the market.
  2. Anyone can open an IRA (individual retirement account) at a local financial institution.
  3. Traditional IRA, contribute pretax, pay tax upon withdrawal.
  4. Roth IRA, contributes after-tax income, and withdrawals are tax-free.
  5. Withdrawals before age 59.5 may incur additional penalties.