Money Tips For Young Adults

The following money tips for young adults should not be taken as exclusively for this age group. There are many older adults who could also benefit from the advice that follows.

Looking for your first credit card?

The ANZ First Visa is a good basic credit card to start off with. The ANZ First Visa features no annual fee for the first year, and is able to be linked to an ANZ Access Advantage transaction account.

• $30 annual fee
• 0% p.a. for 3 months (reverts to 19.24% p.a.) on purchases
• 0% p.a. for 3 months on balance transfers
• Cash Advance Rate of 20.99% p.a.
• 44 days interest free
• Minimum Income Requirement of $15,000 p.a.
• Includes 24/7 ANZ Falcon consumer fraud protection
  Includes purchase protection and extended warranty

Read the ANZ First Visa Credit Card terms and conditions.

The basics

Any financial services contract will contain fine print and terms and conditions that look very daunting. Before signing anything, you must understand how the contract operates:

What does your commitment involve? What has the company promised to do? Are there any exceptions or qualifications to these promises? What happens if there’s a hiccup? If in doubt, ask. The stupid question is the one left unasked. Don’t succumb to pressure. The contract will still be available tomorrow. If you’re told it won’t be, walk away; that’s pressure-selling.

Keep your paperwork

This is an oft-ignored money tip for young people, because paperwork seems so dull, but don’t go shredding any documents unless you are 100% certain they will not be of any future use to you. You can only know this if you read everything, which you probably won’t because very few do. A piece of paper doesn’t take up much space. File everything away just in case you need to refer back to it later on. Trying to find answers when you don’t have the original paperwork always puts you at a disadvantage. Also jot down the gist of any phone calls, and who you spoke to.

Reduce your costs

Always look for ways to lower your costs. Try to avoid paying fees. You will need to do some comparisons to know if this is possible. Look to see if you can alter your banking habits to keep any charges to a minimum. You should know exactly how and when you may be liable for charges.

Play it safe

Be careful with your private financial information. Keep your PIN secret. Do not keep it written down anywhere, especially not in the same place as your plastic. Other people should not be trusted with this, however cynical that may seem. This is a money tip for young adults that is too often learned the hard way.

Keep on top of direct debits

Direct debits are easy to set up, but make sure you cancel any you no longer need. Both the bank and the company concerned must be informed. Whilst the company may accept this cancellation over the phone, your bank will usually require a written letter. To be sure, get into the habit of sending letters to both, and keep copies. Then keep an eye on the following month to make sure the debit does not take place.

Shop around

A money tip for young adults that should carry through your entire life is: Make the effort to compare prices  This includes credit cards, holidays, insurance, and large purchases. Anything that is subject to market competition is worth a comparison to see what deals are out there. Don’t take the first offer on the table. The internet is the best first-stop source of information, but calling companies direct and bartering can work wonders.

Be honest

If you are asked for any details, make sure they are presented accurately. You may think that a few dollars saved by a little white lie or a tactical omission is worth it, but you could invalidate the contract by acting in such a manner. This is especially the case with insurance.

Cost, above all else

Sticking with insurance, don’t buy a car that is going to cost a fortune in insurance. Be sensible, and know what insurance the car will cost before buying it.

Be a canny consumer

The general rule here is this: If it looks too good to be true, it will be. Always research anything that fails into this category. If it’s a scam,there will some online forum full of duped customers complaining about it. Pay attention to this money tip for young people if you want to avoid having to join that forum.

Start saving

It’s never too early for this. Whatever you can manage is enough. Rainy days appear in the lives of most people, and savings can prevent an enormous amount of stress when it happens.

Monitor your superannuation account

In addition to paying you your wages, your employer must contribute an amount equal to 9% of your earnings to your super fund, unless you earn less than $450 a month, or you are under 18 and you are working less than 30 hours per week.

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