Gen Z is the first generation to grow up in a fully digital world where spending is quick and easy with just a few clicks online.
It’s so incredibly easy to spend money online. With that comes a need for a bit more responsibility and self-control when trying to outline and prioritize a monthly budget.
Tip #1: Practice mindful spending
Influencer culture is growing and for many young adults this means spending to keep up with the latest trends. Social media encourages heavy spending as a tool to success.
Combat the urge to spend impulsively by waiting a full 24 hours before making an emotional purchase. Drop your wants into your online cart, and look at it in a day or two! After a little time, you are likely to click “delete” on a few items in that cart.
Tip #2: It’s harder to spend cash
Use cash whenever possible. Swiping a card is so easy, but when you have to hand over cash, you might be more likely to think twice about the price of an item.
Cash helps to keep overspending in check and supports more mindful purchases.
Even if you stick to cash for only a week or two, it’s an experience to help build positive spending habits.
Tip #3: Pennies grow with automatic savings
It is important to spend your hard-earned dollars carefully. Just as important is saving some dollars.
Navigator offers a debit card savings program, Save’N Up, that rounds up your debit card purchases to the nearest dollar. That change is then automatically transferred to your Save’N Up account which earns an excellent savings rate.
Automatic savings is a great way to build up any savings account, so you can start earning interest. It’s an easy way to put your savings on cruise control!
Tip #4 Build credit with a credit card
Find the credit card that is right for you, and use it as a tool in which to build credit and not as an unlimited resource.
An ideal credit card for young adults with not a lot of credit history is a secured credit card.
A secured credit card can give you a starting credit limit, a great rate, and by paying it off regularly, an opportunity to build your credit score.
Small steps to financial wellness
Have a purpose for your money. Start saving early. Being mindful now will help you to build great habits for the future!