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is easy to fall into the trap of using a credit card as if it allows consequence- free, unlimited spending. This mind- set obviously leads to ruin, especially since credit card debt carries extremely high interest rates. To be safe, credit card bills should always be paid when due. • SET UP AN EMERGENCY FUND. Having worked for a relatively short period and oftentimes having low salaries, young people are more likely to live paycheck to paycheck. If at all possible, an emergency fund to handle unexpected large expenses should be set up. A good rule is to set aside an amount of money equaling six months of normal living expenses. • ESTABLISH A GOOD CREDIT SCORE. Impress upon young people the im- portance of a good credit score. A per- son’s credit score determines whether or not they will be able to obtain a loan and at what rates. The essential rule for improving credit score is to pay bills on time and use credit cards responsibly. Other ways to build credit are to become an authorized user on a parent's credit card; open a student or secured credit card; pay student loans on time and take out a credit-builder loan. • START NOW SAVING FOR RETIREMENT. Retirement can seem unimportant to people who still have decades left in their working life. But the right time to start saving is always now. An early start makes reaching retirement goals much, much easier. Since in- vestments grow over time, the more time they have to grow, the better. There is no time like the present to begin to learn basic and important money management skills. Establish- ing the proper habits at an early age is extremely valuable. Wise financial management, will help young people avoid financial difficulties and enjoy a happy, successful life. n Find us on Facebook, Instagram and Twitter AUGUST/SEPTEMBER 2020 17 .....................................................................................................................................................................