If you’re a student or a young person under 20 years old, I would like to grab your attention for a few minutes to talk about personal finance tips that will help you to keep more of what you earn and help to prevent stressful situations that you don’t need to go through.

First things first. Create a budget. Start by tracking your income and expenses, and create a budget that covers all of your necessary expenses like tuition fees, rent, groceries, transportation, and other living expenses. Use budgeting tools like spreadsheets or budgeting apps to help you to best manage your finances.

Next, look for scholarships and grants. Take the time to research and apply for scholarships and grants that can help you pay for your education after high school. This can help you to reduce your reliance on student loans and ultimately lower your debt burden after graduation. The best time to start is right now, even if you aren’t ready to graduate from high school. Learning how to acquire scholarships and grants will push you ahead of the line so that you’re ready when the time is right.

If you must take out student loans, try to borrow only what you need and consider federal loans with lower interest rates. Make sure that you understand your loan repayment terms and options.

This one is important. Be sure to build good credit. Building good credit early can help you to qualify for better interest rates on loans and credit cards in the future. It will also save you money on insurance premiums and may be a factor when it’s time to go job hunting. Many employers base part of their hiring decision process on a credit score, so don’t assume that you don’t need a credit score or that you will be fine without a good score.

Consider applying for a credit card with a low credit limit and use it responsibly by paying off your balances on time and in full. Over time, you will build good credit and a great credit score that you can continue to improve upon in the future. If you’re looking for an affordable tool to help with this, go to smartcredit.com/followme.

Another great piece of advice is to earn extra income. Look for part-time jobs, freelance work, or even starting your own business. You can also consider renting out your unused space if applicable or selling items that you no longer need to keep things tidy while earning a few extra dollars.

Look for ways to cut unnecessary expenses such as eating out, shopping for non-essential items, or paying for services that you don't really need. Use free resources such as libraries, public transportation, and community events to save money.

Last but not least, plan for your future. It’s never too early to start planning for your financial future by setting long-term goals, such as saving for a down payment on a house or investing in a retirement account as soon as possible. Even small contributions can add up over time. Allow compound interest to work in your favor and not against you.

As quoted by Albert Einstein, “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it.”