When it comes to long-term success, the next job or certification is only one piece of the puzzle. It’s equally important to understand the financial resources available to you and how they fit into your future. To that end, our supporters at TD Bank recently shared helpful financial literacy and planning tips with young adult members of our Construction Career Accelerator program. Here are the key takeaways:

 

1. Banking is a relationship.

Just like with people, banks want to know they can trust you. If you’ve borrowed money from other banks and failed to pay it back, that trust can be hard to come by. Use your free annual credit report to catch issues like high usage or late payments early and adjust. And if you’re just starting out with credit, remember that building a strong relationship takes time. The length of your credit history factors heavily into your score, but the best you can do is keep your oldest line of credit open and play the long game.

 

 

2. A solid budget is nothing but net.

As TD Business Relationship Manager Victor Alvarez put it, your gross income is the money you wish you had. Your net income is what you have to work with in the real world. Base your budget on your net income to set realistic expectations about how much you can save or spend after needs like rent and utilities are covered.  

 

3. Every financial journey is unique.

It would be nice to have a clear and universal set of financial rules to follow. But best practices vary depending on where you are in life. For instance, keeping credit card usage under 30% of your total available credit may be attainable for some and not others, while investing may shift from a “want” to a “need” as you get older. Consider your unique life circumstances, do your own research, and you’ll be well on your way to making the financial choices that work for you.

For more Financial Education, visit the TD Bank Learning Center.