Here are 6 tips to help college grads – or anyone else – build credit. Good credit is the cornerstone of sound finances. A top credit score can help you get the best terms on a loan. Here are some key ways college grads or others can build credit.

1. Think before you borrow – can the purchase wait? Is my interest rate the lowest rate possible?
2. Don’t overdo it – limit the amount of debt you have at a given time
3. Know what impacts your score
   • 35 percent: payment history
   • 30 percent: amount owed
   • 15 percent: length of credit history
   • 10 percent: new credit
   • 10 Percent: credit mix (credit cards, loans, etc.)
4. Know your options – to secure credit
5. Be Punctual – always pay on time

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To explore the importance of financial literacy, we turned to financial experts working in colleges, high schools, and credit unions. Together, the populations they serve span a broad range of ages, incomes, and backgrounds. These educators witness first-hand the impact that financial literacy – or the lack of financial literacy – can have on a person’s life.

Research has shown that students are more likely to drop out of school because of “outside pressures” than poor grades. Students success is no longer constrained  to classrooms or defined by academic performance alone. The topic of money often arises and has to be managed. Planning ahead can be helpful. For those who don’t plan ahead resources maybe available but there is no guarantee of success without proper planning.

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Why is financial literacy important?

Financial literacy is important because it equips us with the knowledge and skills we need to manage money effectively. Without it, our financial decisions and the actions we take – or don’t take – lack an informed foundation to maximize their success. And this can have dire consequences.

• Nearly half of Americans don’t expect to have enough money to retire comfortably
• Credit card debt has reached its highest point ever.
• Forty percent of Americans can’t afford a $400 emergency expense
• Student loans are in default at the highest rates in history

Given the above statistics, it might not be surprising that nearly tw0-thirds of Americans can’t pass a basic test of financial literacy.

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Some types of traffic violations can drive your car insurance rate dramatically higher. Accidentally run a red light or drive a little to fast, and you may get a ticket. But that is just the start of your worries. Some traffic violations can drive your car insurance premium dramatically higher. In fact, the money you lose in higher policy costs can dwarf the expense of the ticket itself, according to a study from a car insurance comparison tool The Zebra.

For example, blow through a red light, and your rate could jump 22.7 percent. That could cost you an extra $333 in your annual premium. Here are the facts:

• Failing to wear a seat belt: 4 percent increase, extra $59
• Not-at-fault accident: 6.7 percent increase, extra $98
• Texting while driving: 19.7 percent increase, extra $290
• Failing to stop at a red light: 22.7 percent increase, extra $333
• Speeding: 23.2 percent increase, extra $341
• Improper passing: 23.4 percent increase, extra $344
• At-fault accident: 42 percent increase, extra $617
• DUI: 73.9 percent increase, extra $1,086
• Hit and run: 82.2 percent increase, extra $1,209

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It’s been quite a year for hip hop artist 21 Savage. Despite dealing with immigration issues, the 21 Savage, real name, Sheyaa Bin Abraham-Joseph, has managed to remain at the top of the charts as a staple of the genre. While he may be best known for lyrics about his car accumulation and his famous “in my bank account,” he’s putting his money where his mouth is (quite literally) and using his fame (as well as his financial knowledge) to help youth develop sound financial goals, increase financial literacy, and assist with job and college placements. During an appearance in Georgia at a local elementary school, 21 Savage led a mini-workshop for delighted 4th graders, where he talked about the value of financial education and literacy. He also announced an upcoming event and pledged to help each child open his or her own first bank account- complete with $100 in it. As for the artist, developing a sound financial future is a cause near to his heart.

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Two consumer giants plan to start working together to sell consumer data to banks, the latest attempt to feed banks appetite for more information to consumers. Both companies already sell their services to banks, but now their sales employees will pitch each other’s services as well. Equifax has lost business since the 2017 breach, but the company has said it “has made enormous progress.” Equifax remains under investigation by federal and state legislators. This breach led to legislation that allows consumers to “freeze” their credit files at no cost. Yes, for FREE! Contact Experian, Transunion and Equifax for more information.

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To prevent identity theft, leave these three items at home and not in your purse. They are:

First, receipts may often have your personal identification such as your credit card number. Take one check if needed for a special purchase.

Second, you should never carry around your checkbook. Thieves can may fraudulent purchases from your account.

Third, do not keep your passport in your purse for identification. When traveling abroad, make a photo copy and leave your passport in the hotel safe.

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Recently, there has been a spike in renter evictions around the country. Rental costs now take more than 30% of an individuals monthly income. ‘Fragile renters’ frequently live from paycheck to paycheck and are likely to be evicted more quickly than ever before. For example in Milwaukee, Wisconsin – evictions have increased 3 times the number in previous years. Also, the evictions are higher for African Americans than the rest of the population. If you are concerned about this issue, contact your local housing authority to learn about your rights. An eviction can wreak havoc on your credit report and will likely remain for up to seven years. Please note that an eviction can turn into homelessness for those living on the financial edge.

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Arguments about money hamper many marriages. In fact, couples fight about money twice as much ad they fight about sex. And the challenges can actually start even before you say “I do”. Items to discuss before marriage:

1. debt – school loans, car loans, credit cards, gambling habits, or taxes owed etc.
2. Personality – the spender vs. saver roles as a couple
3. Power Play – He works – she doesn’t vs. who will make the money decisions
4. Mine, Yours, Ours – did you own property and assets prior to marriage?
5. Children – is child support or spousal support involved?
6. Extended Family – do you lend or borrow from family members? If so, how does your spouse feel about this?

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If you have a credit card, you should, theoretically, know how missing a payment or paying off less than your total balance each month can lead to a debt spiral. The interest rate on credit cards is very high compared to other financial products, and it compounds when you don’t pay your balance off in full each month.

And credit cards make it easy to fall into that debt spiral. One way they do this is that your issuer will display the “minimum balance due” each month prominently on your bill/online account, and if you don’t know better and continually pay off just the minimum, you can end up owing a lot more money over the long term.

When credit card companies give you more flexibility by paying the minimum balance, it is really a way for them to profit from you. It’s easy to spend more than you can afford, but you should only charge as much as you can pay off in a single month. Credit cards companies are counting on the fact that you won’t.

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