The Best Financial Options for Young Adults to Choose
Best Financial Products to Pick: As we have seen best financial products for working families, the same is considered for young adults also. Experts say that youngsters should pick those financial products that are really needed for them. It is difficult to decide which product is useful to everyone because needs are varied from person to person.
Pick Bank or Credit Union Checking Account, Not Prepaid Debit Card
Shop around or ask parent to open a checking account with bank. Ask information about minimum balance requirement, out of network ATM fees and monthly maintenance fees. Find a financial institution by shopping around where the fees for all of these services are zero. Local credit unions often have lower fees than banks. Prepaid debit accounts are function like bank/credit union deposit account but more expensive than checking account.
Pick Low-Limit Credit Card with a Low APR, not High-Limit Card with all the Reward Bells and Whistles
Young people should prefer cards with low fees and interest rates rather than gravitating toward the flashier reward cards. Credit card companies have interest only in collecting money. They are not advising how to spend, how much spend and on what to spend. It is card holder’s responsibility to aware about spending.
Pick 401(k) or Roth IRA Containing No-Load Mutual Funds, Index or Structured Funds, Not Retirement Account Containing Actively Managed Funds
It is risky to invest in small- cap funds, emerging markets and value stocks. If an employer is offering 401(k) with matching funds then it is the best choice for employee. A Roth IRA is also a great investment because money invested in Roth IRA is tax free at the time of withdrawal. Money market account is another good option for those who don’t want to pick retirement account.
Pick High-deductible Health Insurance, Not Pricier Plan, or Insurance to Cover the Deductible Gap
At the young age, people can pick health insurance plan with low premium. Many young people could not realize the need of health insurance in young age but it realized in old age. So, it is better to pick it in younger age for getting benefit of low premium.
Pick Renter’s Insurance, Not that Going Without
Renter’s insurance provides protection against many catastrophes. Without insurance, sometimes the cost of replacing everything in event of damage is more. It you have car insurance, then get discounts in Renter’s Insurance that many insurers provide.
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