Financial education is unfortunately not taught in schools and too many people never learn how to adopt and maintain healthy financial habits.
Fortunately, Vee, a financial writer and coach on TikTok, shares tips and techniques to help viewers minimize financial stress and start financial planning. She recently shared some things she avoids to maintain financial stability.
Three financially savvy habits to avoid to be good with your money:
1. Apply for in-store credit cards at checkout.
Vee admitted that when she was younger, she fell victim to these attractive credit card offers.
“What I didn’t know at the time was how those apps were affecting my credit,” she said, warning young people not to be tempted by the 25 percent discounts for store sign-ups.
“Every time you apply for new credit, it can take up to 2 to 5 points off your credit score,” she explained.
While credit scores are incredibly overwhelming and difficult to understand, they are also very important when looking to buy a home, get a loan, or maintain financial stability in adulthood.
But when you open a new line of credit, such as a retail store credit card, the credit company “pulls hard” on your credit report to review it as part of the approval process. Regardless of whether or not you’re approved for the card, the more credit reviews you pass through your application, the lower your credit score.
The same goes for credit tenure – if you’re approved for a card, referred to as a “new line of credit,” your credit history is affected and your score usually goes down.
By maintaining consistent credit card and loan payments, the lowest possible credit balance, and fewer new lines, you can build your credit, even if it’s just a few points at a time. As many people have unfortunately found out, it’s much easier to lower your score than to raise it – the latter requires commitment and planning.
2. Send coupon codes to their primary email address.
When signing up for a store email list, a holiday coupon or any promotional content from a brand, Vee advises you to use an alternative address instead of your primary email inbox.
“That way, I’m not tempted by the offers that flood my regular inbox every day,” she explained. “When I’m ready to buy something, I’ll then go to that email address to see if there’s a coupon.”
For compulsive shoppers and impulse spenders, this rule can definitely help. When you see non-stop sales and deals in your email, it’s easy to justify a purchase. However, by compartmentalizing, you can better avoid the triggers that cause you to spend unnecessary money.
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3. Browse online or in store for fun.
“I go to the store with a purpose,” Vee said. “I’m not going to kill time. I don’t go because I’m bored.”
She added that she rarely shops with other people to focus only on buying what she needs. “I don’t have to worry about someone slowing me down or making me spend more time in the store,” she explained, “which will likely result in more browsing and impulse buying.”
This money coach ultimately suggests that people with shopping or spending difficulties avoid putting themselves in vulnerable situations that indulge their bad habits. If you’re in Sephora, scrolling through DoorDash, or perusing Target after a long day at the office, you’re only setting yourself up for failure.
Zayda Slabbekoorn is a news and entertainment writer at YourTango focusing on health and wellness, social policy and human interest stories
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