According to the Obama administration, it’s younger than the age of 21. A recent article in the New York Times talks about the new legislation slated to go into effect regarding the accessibility — or lack thereof — of credit cards for teenagers and those in their early 20s, and how parents should teach their children about money management.
Tag Archives: checking account
Like I mentioned earlier, I monitor my net worth at the beginning of each month. I find that it helps keep me on point with regard to all of the goals I have for myself. I also just like to keep tabs every month. To me, it’s a nice, round period of time. I wouldn’t do it any more often than that, but I’d do it more than once per year. I think quarterly would work just fine.
Anyway, on to the numbers …
Self-control and priorities, or the lack thereof, take on a razor-like focus in today’s installment of Daily Dimes.
There is a story today all over the wires about several large banks — Bank of America, Wells Fargo, and Chase — taking another look at the fees they levy for those who overdraft their banking accounts. Essentially, they will become more lenient with those who do overdraw from their accounts if they opt into particular programs.
According to the article, banks are set to collect $38 billion — yes, billion — from overdrafts this year. Thirty-eight billion dollars out of your pockets because you can’t keep track of your own funds! There’s no excuse for this. You can go to any ATM check your balance, keep your checkbook on you with an updated tally of how much you’ve spent, or set up online access to your account (virtually every bank is doing this now) so you can check your balance as long as you have an Internet connection.
I think it is ridiculous government and other finance experts find that making rules more lenient for overdrafts is a good thing. It’s not.
I’ve taken the lessons my mother has taught me about planning and budgeting and broken it down into six steps. Follow these to establish your personal finance plan, and you will have the foundation in place for success — no matter what small obstacles or larger life events may come your way.
Here are the six (in order):
1. Figure out your net worth.
2. Set goals for yourself.
3. Determine how much money you spend per month.
4. Take your paycheck and start allocating for your expenses.
5. Set aside your savings.
6. Adjust accordingly.
Common cents? Sure, but sometimes we all need to get back to basics. Read on after the jump for more information on each step.