Personal Finance Tips and Tricks

How to Open a Bank Account

Choose a Bank and Account: Pick a bank and decide whether you want a checking account (for spending) or a savings account (for saving).
Gather your documents:
- A valid ID (like a passport or driver's license).
- Your Social Security Number (if required).
- A parent or guardian (if under 18).
Visit the Bank or Apply Online: Go to branch or visit the bank's website to fill out application.
Make a Deposit: Add the required minimum deposit (often $25 - $100) to activate your account.
Set up Online Banking: Sign up for online or mobile banking to manage your account.

The 50/20/30 Rule

The 50/20/30 rule is a simple budgeting guideline that helps individuals allocate their income into three categories: needs, savings, and wants. It's designed to create balance while helping you manage your money responsibly.

Breakdown of Rule:

50% for Needs:

Essentially, you are required to spend money on things like rent, mortgage, utilities, groceries, insurance, transportation, and minimum debt payments.

20% for Savings:

Any money set aside for future financial security or to pay debts faster. Things like emergency fund savings, investments, and extra payments on loans or credit cards.

30% for Wants:

Non-essential expenses that bring enjoyment or convenience. Activities such as eating out at restaurants, entertainment, shopping, and hobbies.

Debit vs Credit Card

Debit Cards: What are they?

Debit cards are payment cards that allow you to access money directly from your bank account to pay for goods or services or withdraw cash from an ATM.

Key Features:

Linked to your bank account.
Spending Limits.
No Interest Charges.
Online and In-Person Use.

Credit Cards: What are they?

Credit cards are payment cards that allow you to borrow money from a bank or financial institution up to a set limit to pay for goods or services.

Key Features:

Borrowed Money.
Credit Limits.
Monthly bills.
Interest charges.

Setting Financial Goals

As a teenager or young adult it is natural to start thinking about your financial future!

The best thing you can do at this age is to establish Short-Term and Long-Term goals:

Short-term - Save for the things like a concert, gaming console, or trip.
Long-term - Think about college, a car, or even starting a business.

How to Open a Bank Account

The 50/20/30 Rule

Breakdown of Rule:

Debit vs Credit Card

Debit Cards: What are they?

Key Features:

Credit Cards: What are they?

Key Features:

Setting Financial Goals

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