 | Mark Kolarik is the President of the Kansas Teachers Community Credit Union, located in Pittsburg, KS, since 10-2002 and is a board member of the Kansas Corporate Credit Union located in Wichita, KS . He has been employed in the financial service industry for the last 31 years, having worked in several credit unions for 21years and 10 years in the banking industry. He holds a Bachelor of Business Administration degree from the University of Wisconsin-LaCrosse and is a Certificated Credit Union Executive. |
Banking & Finance
2012-01-26 16:40:07
Money advice for young people
A: To successfully reach their financial goals, a lot depends on what they do and when. Here are just a few ideas young adults can consider at key stages of their life.
If you’re in high school
Get a job: babysitting, lawn mowing or working in a movie theater or another “real” business. A job can provide a sense of accomplishment and responsibility. Automatically put some money into savings or investments before you’re tempted to spend it. Consider opening an account at your local credit union or financial institution, either on your own or with a parent or other adult. You also may want to start using a debit card or credit card. A debit card can be used it to make purchases but you won’t pay interest or get into debt because the money is automatically deducted from your checking account. There are credit cards designed just for teens including ones with a low credit limit that can keep you from getting deeply in debt. Another is a pre-paid card that comes with parental controls, including spending limits.
If you’re in college
Realize that as you pay bills and debts on your own; you are building a “credit record” that could be important when you apply for a loan or a job in the future. Pay your bills on time, and borrow only what you can repay. Choose a credit card carefully. Understand the risks as well as the rewards and do some comparison shopping. Don’t apply for a credit card just because you received an invitation in the mail or a sales person was offering a free gift on campus.
Safeguard your personal information like Social Security number (SSN), when using the Internet or borrowing a computer provided by your school. Consider a paying job or even an unpaid internship at a workplace related to a career you’re considering.
If you’re starting a career
Keep your credit card and other debts manageable and maintain a good credit record. Contribute as much as you can to retirement savings and take advantage of matching contributions that your employer will put into your retirement savings. Do your best to stick to a budget and control your spending, especially if you’re still paying back student loans or working at an entry-level job. Check into low-cost or free insurance offered through your employer.
If you’re starting a family
Continue saving and investing money, including in retirement accounts. A home purchase can be expensive but it also can be an excellent investment and a source of tax breaks. Make sure you are properly insured, including life, health, disability and homeowner’s or renter’s insurance. Talk with an attorney about the legal documents you should have to protect your loved ones if you become seriously ill or die. These documents typically include a will, a “durable power of attorney”) and a “living will.”
