The fact is, financial literacy is a skill and not one that’s commonly taught, especially to women. I’ll never understand why such a vital skill is rarely taught in schools.
- Know your credit score. If you’ve never had to manage your finances independently before, credit cards can be a blessing and a curse. By letting you defer payment, it’s supposed to give you more flexibility, but for far too many, it turns into a burden of creeping debt. Knowing your credit score tells you how far you need to go in terms of managing your ability to accrue and pay down debt. If the idea of debt scares you, and it does for a lot of people, you can use a credit card simply to build up your credit by making (and paying off) small purchases that won’t burden you. The trick is keeping track of those purchases; maintain a record to make sure that, when the bill is due, you have enough to wipe it clean. One way to do this is to use a credit card only for your monthly bills (like your internet, cell phone, and other utilities that you already pay each month) and then set up a monthly automatic payment to your credit card. That way, you’re building credit without building up debt.
- Open a savings account. The beautiful thing about savings accounts is that they make it a little harder to get to your money. You can’t spend money that isn’t in your checking account, right? Even just getting a sense of what money you’ve chosen to set aside and what money you’ve allocated for spending can go a long way. So get to work building a reserve so when unexpected costs come up, you can meet them head-on without cutting into the money you live off of. If you’re making good money like you say, squirreling away a few hundred every check should be feasible.
- Get current on your bills. Racking up late fees is a huge issue because they can snowball and turn manageable debts into monsters stalking you night and day. Make it your first priority to stop increasing your debt so you can start paying it down.
- Create a Budget. Look at what you have coming in and out each month. With so many services and products now on a subscription model, it’s easier than ever to wind up paying for things you don’t even use. It may surprise you what you’re still paying for. By getting all of that down in front of you, you’ll start to see what things you can cut, how you may want to allocate what you’re spending money on, as well as how much you can set aside each month for savings.
WRITTEN BY
Liz EltingLiz Elting, Founder and CEO of the Elizabeth Elting Foundation, is an entrepreneur, business leader, linguaphile, philanthropist, feminist, and mother. After living, studying, and working in five countries across the globe, Liz founded TransPerfect out of an NYU dorm room in 1992 and served as Co-CEO until 2018. TransPerfect is the world's largest language solutions company, with over $1.1 billion in revenue and offices in more than 100 cities worldwide. Liz received the 2019 Charles Waldo Haskins Award for business and public service from NYU’s Stern School of Business, the American Heart Association’s 2020 Health Equity Leadership Award, the Alliance of Women Entrepreneurs’ 2021 Vertex Award for changing the face and direction of women’s high-growth entrepreneurship, the American Heart Association’s 2022 Woman Changing the World Award, and Trinity College’s 2022 Kathleen O’Connor Boelhouwer ’85 Alumni Initiative Award. Liz has been recognized as a NOW Woman of Power & Influence, American Express' and Entrepreneur magazine's Woman of the Year, and one of Forbes’ Richest Self-Made Women every year since the list’s inception. Elting is the author of Dream Big and Win: Translating Passion into Purpose and Creating a Billion-Dollar Business.