If your child, at the age of 18, was leaving home for the first time (college, army, just getting away) and asked you for a few tips about finances, what would they be?

My answers:

1.  Save a little bit.  Have 10% of your check deposited automatically into a Savings account that is with a different bank or not immediately accessible by your checking account and forget that that money ever existed, except in case of dire emergency (car breaks down and is your only way to work to earn the money you’re saving would be an acceptable emergency).

2.  Your credit is your future.  Do not get more than 1 credit card to start out with and build that credit up.  As a newbie in the credit field, credit card companies will send you numerous offers.  Read the terms, read the percentage rate, read read read.  Know what you’re getting yourself into.  The best cards have a low interest rate (10% or less) and absolutely NO annual fee.  Accept nothing but the very best.

3.  Let someone else be the fool.  AVOID at all costs the “T-Shirt to fill out an application” credit card trap.  Instead, take 50 cents out of your pocket and hand it to the rep — that’s all he gets for getting you to fill the application out and trying to ruin your credit anyway.  Better yet, ignore the rep, keep your 50 cents and you’re already ahead of the game.

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