Building a solid credit history is crucial for future financial milestones like purchasing a car or home. Certified financial planner Mary Carlson advises starting small with credit habits, such as using student credit cards like the Capital One SavorOne or Discover it® Student Cash Back, which offer attractive cash-back rewards and no annual fees. It's a common myth that carrying a balance is necessary to build credit; instead, paying off balances in full is key to avoiding interest charges. Becoming an authorized user on a parent’s credit card can also help build credit early. In addition to credit, maintaining savings in a high-yield savings account, like the Marcus by Goldman Sachs account, can significantly increase your interest earnings compared to traditional accounts. Carlson also suggests using the 50-30-20 budgeting rule to manage finances effectively and recommends budgeting apps like Monarch and Goodbudget to streamline tracking. Finally, seek reliable financial advice from credible sources to make informed decisions.
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