Helping young adults with Budgeting, Investing & Taxes

[healthy11]

We've had other discussions at Millermoms, about building a good credit score, etc. ( millermom.proboards.com/index.cgi?board=college&action=display&thread=7536 ) but the June 2011 issue of Money Magazine mentions some potentially useful information regarding helping young adults learn about budgeting/money management.

As the article says, kids don't want to listen to lectures about balancing a checkbook, but they might like www.Mint.com which is a trendy free budgeting tool aimed at Gen X and Y, and it's also available as a mobile app...it can track spending in various categories and even alert the user if they're nearing a threshold that the user has set. Another is Power Wallet www.moneytalksnews.com/rates/powerwallet/

Read more: wallstcheatsheet.com/personal-finance/how-to-actually-commit-to-a-budget-7-tips-for-success.html/?a=viewall#ixzz3JqtfScKl

The article also mentioned introducing the young adults to the concept of emergency savings, like if their car needs repair, etc. The ultimate goal is to have 6 months of expenses saved up, but many kids may need help even starting, so they recommend setting up a savings account where some fixed $ amount is transferred from checking to it every time they get paid.

Another "emergency area" that many 20-somethings overlook is medical expenses...if their job doesn't come with health insurance right away, and they don't qualify to stay on the parent's policy, the article recommends getting a short-term policy, like through www.gradmed.com or www.ehealth-insurance.com

wallstcheatsheet.com/personal-finance/how-to-actually-commit-to-a-budget-7-tips-for-success.html/2/ says, "One downside to Mint and certain other personal finance apps is that unless you check the app everyday, you can continue to be blissfully unaware of your budget until it finally sends you an “over-budget” notification or a “high spending” warning. No worries, though, there are plenty of other finance apps out there, including Level Money, HelloWallet, Dollarbird, Moneywiz, Homebudget, and more. BUDGT is another super popular app, which gives you a clear view of what your “spendable” money looks like on any given day. Joanna, of Our Freaking Budget, a blog dedicated purely to home budgeting, says she swears by a combination of both Homebudget and Mint. She reviews some of her favorites at www.ourfreakingbudget.com/best-personal-finance-apps-2014/ "

For good, independent financial and investing knowledge through every stage of life, CPA's sponsor a free site: www.360financialliteracy.org/Topics/Investor-Education
and FINRA does, too: www.finra.org/Investors/SmartInvesting/index.htm

and another informative site is www.learnvest.com/knowledge-center/are-you-financially-healthy-the-3-numbers-you-should-know/

And for first-time tax filers, see www.fastweb.com/student-life/articles/3091-first-time-tax-filing-explained

Also, for some recommendations from actual people with ADHD, see connect.additudemag.com/groups/topic/Managing_money_apps12/

[healthy11]

For those individuals who have credit cards, the following may also be of interest:
www.annualcreditreport.com only gives free credit reports, but as of July 2011, the following two internet sites are considered legitimate places to get your numeric credit score, according to the "Upgrade Your Life" producers at Yahoo.com:
www.quizzle.com and
www.creditsesame.com

[bros]

Also creditkarma.com

[healthy11]

It's been mentioned in other conversations, but everyone needs to be wary of "the fine print" and extra fees that are often assessed in conjunction with bank accounts. Here's a good article on that subject: finance.yahoo.com/news/bank-fees-watch-2012-050114176.html

[dwolen]

We were thinking my dd should get a credit card so she can build a credit history, use it occassionally, etc. She applied for one with her bank, but was denied due to no credit history. (When she lived with the group in Cleveland, the utillities were in her roomies' names, though she made sure the bills were paid, she says.) She does have difficulties with memory, exectutive function, etc., so for now, I am making sure the tuition is paid, follow her bank account.
Any suggestions for sources of a credit card? They used to offer credit cards to students a lot, before the 2008 recession.

[healthy11]

I'm surprised whatever bank she has her checking account didn't qualify her for a credit card, but maybe she hasn't been with them for a long enough period of time?

Capital One still has college/student cards, and I'd suggest trying them. They usually start with a low credit limit, around $500. In order to improve one's credit score, a person should use the card (don't just get it and toss it in a drawer) but never exceed 30% of the credit limit in any month, and pay it off, on time, the following month. After about 6 months, a person should then have the ability to qualify for other credit cards.

If you haven't already done so, be sure to read millermom.proboards.com/index.cgi?board=college&action=display&thread=7536 (The thread was started before new credit rules went into effect, but some of the later comments pertain to today's credit marketplace.)

[healthy11]

Here are more good articles about helping kids learn about money management and "the real world:" www.foxbusiness.com/personal-finance/2012/02/20/prepping-your-student-for-real-world-starts-young/

The title says it all: "Every 25-year-old in America should see this chart" www.businessinsider.com/compound-interest-retirement-funds-2014-3

[healthy11]

Here's a story about a company called Simple, that offers an alternative to conventional banking and which helps its users with a metric called Safe-To-Spend, a number that answers the question, "How much can I spend today without getting in trouble tomorrow?"

Simple knows not only your balance, but is also aware of upcoming expenses like rent, saving for a car, etc. So if you have a $1,000 balance but rent's due next week and you're putting aside a little money every day to take the significant other out this weekend, Simple will know that you've actually got $200 or so.

www.businessinsider.com/simple-banking-2014-1

Another new type of app that can help people learn to "save painlessly" is Digit (but realize you don't earn interest on your savings at this point in time): finance.yahoo.com/news/29-old-invented-painless-way-170000170.html

[healthy11]

www.dallasfed.org/microsites/cd/wealth/online/index.html is a "Beginner's Guide for Securing Your Financial Future"

finance.yahoo.com/news/millennials-worse-off-parents-120849536.html mentions an advantage millennials have is technology. Not only do banks have more mobile services, but there are dozens of apps available to help them manage their money and stay on top of savings and investments. Many-like www.BudgetSimple.com , www.Mint.com and www.Spendeeapp.com are free and can be accessed easily from a mobile phone.

www.moneyunder30.com/best-budgeting-tools mentions a number of free and paid apps and websites for budgeting, including www.personalcapital.com , www.Learnvest.com , www.youneedabudget.com , www.mint.com , www.hellowallet.com , www.billguard.com , www.mvelopes.com , www.moneydance.com, www.buxfer.com , and other articles mention www.goodbudget.com (formerly EEBA, the Easy Envelope Budget Aid) and Spending Tracker (for Windows 8.1 and up, and Android phones).

www.cnbc.com/id/102363544 lists some of the "best financial planning apps of 2015" including www.Acorns.com (free), Home Budget ($4.99), Mint Bills (free), Expensify (free), Bill Guard (free), Level Money (free), Square Cash (free), Saved Plus (free), and Blooom (fee varies).

www.goodfinancialcents.com/personal-capital-vs-mint-review/ gives detailed comparisons of mint.com vs. personalcapital.com (essentially, mint is more for budgeting, while personalcapital is more for investing)

[healthy11]

With the IRS tax deadline quickly approaching, and the subject of money/finances on people's mind, I feel it could be useful to "bump" this thread again.

Here's another short article containing good overall financial advice: www.yahoo.com/finance/news/6-rules-living-frugally-153922841.html

Also, an April 27, 2016 Washington Post article by Jonnelle Marte talks about how Millennials who do have extra cash might invest. Among other things, it says, "Investing can be intimidating, especially for young savers who don’t have quite enough cash where they feel ready to hire a financial adviser... But after the emergency fund is set and retirement contributions are substantial, additional savings can be invested through a brokerage account or online based investment firm. Choosing the right account will depend on how much you have to invest and how much advice you need.

For example, so-called roboadvisers such as Wealthfront, Betterment, and Personal Capital will create portfolios based on a person’s goals and risk tolerance using stocks and low-cost exchange-traded funds. Smartphone apps can be helpful for savers who want to start investing but don’t have a huge portfolio. Through one app, Stash, people can start investing in ETFs with as little as $5. And with Acorns, savers can invest the spare change left over after everyday purchases. People who want to trade individual stocks and who want to be more hands on with their portfolios can also turn to traditional brokerage firms, such as Charles Schwab and E-Trade, which offer some online portfolio guidance for investors who want the help.

[healthy11]

This site is interesting, especially given that the author at www.budgetsaresexy.com/net-worth/ says he keeps a monthly record of his net worth, to remind himself that it's all a journey, which is especially important for someone with ADHD!!
(I'm not sure how old the fellow is, or what type of job he has, but he certainly seems to have a good financial mindset and savings!)

www.yahoo.com/news/create-stick-budget-isnt-fun-150000980.html

[healthy11]

A financial representative being interviewed shared some great advice, especially with regards to younger people: Sometimes, it's the way a message is presented that can determine if the information is heard and accepted. INSTEAD OF SAYING IT IS CRITICAL TO CREATE A BUDGET, TELL THEM IT'S IMPORTANT TO HAVE A SPENDING PLAN!

"Budget" sounds very tedious, restrictive, and old-fashioned, but calling it a "Spending Plan" is more positive and encourages people to think about where their money is going now, as well as what they might want to accumulate (save) in order to spend later on.

[healthy11]

www.businessinsider.com/how-to-save-money-every-day-2018-7 has a lot of good suggestions, including using financial planning apps.... "They provide an almost effortless way to save money each day, as they can connect directly with your accounts to track spending and alert you to problem areas without needing to log your spending each day yourself."

Some apps such as www.acorns.com, www.Mint.com, and www.Wally.me also help you create a budget, as well as alert you when you're spending too much in one category.

Mybanktracker lists other apps here: www.mybanktracker.com/news/personal-finance-apps-better-than-mint

www.robinhood.com is a free stock-trading app popular with young adults.

[healthy11]

From [e-mail]: It goes along with the slow and steady exit from brick-and-mortar banks: A slew of apps promising “smart” technology that can do the thinking (or fee management) for you. Case in point: Mint just launched MintSights, a new tool that uses machine learning to provide users with a simplified view of what’s important for their finances (how to better manage your cash flow or how to dive into investing). Another example: Zero Financial just debuted a debit-meets-credit card in the form of a mobile banking experience that manages the fees for you, offers cash back and doesn’t allow you to spend what you don’t have.

[healthy11]

There are 15 free budgeting templates for various topics (from daily living to wedding planning, etc.) at www.gobankingrates.com/saving-money/budgeting/easy-to-use-budget-templates/

[shawbridge]

I figured data was the first step and suggested to ShawD that she start monitoring spending. She is now using Mint and has linked it to credit cards and bank accounts, I think.

[healthy11]

Here's an article that emphasizes about how important data is, especially to beginning savers:
Do these five things to get to your first $10,000 even if you have no money
by Jill Cornfield, CNBC May 28, 2019

finance.yahoo.com/news/five-things-first-10-000-123046339.html

[healthy11]

An organization that helps people with financial literacy, Money Smart Week is a national public education program coordinated by the Federal Reserve Bank of Chicago and delivered by a network of supporters that empowers people with the knowledge and skills to make better-informed personal financial decisions around the key financial pillars of saving, spending, borrowing and planning.

www.moneysmartweek.org/