In high school, college, and even in law school, the last thing on Coleâs mind was building credit by using a credit card. Like so many others, his family warned him about what could happen if you used a credit card irresponsibly.
Cole also felt that since he wasnât earning his own money, having a credit card didnât make sense for him. Without a bigger income to support himself, he thought there was too much risk associated with a credit card. Debt, interest rates, and low credit scores were on his mind.
âI didnât even think about getting a credit card in high school. And in college and at law school, it still wasnât something I felt like I was ready for or interested in,â Cole told me. âIt honestly made me kind of scared. What if I didnât pay my bill?â
Coleâs thought process isnât uncommon. He attended Haverford College and law school at Columbia, which were stressful enough by themselves. He didnât feel like throwing a credit card in the mix was going to help anything. âI knew that technically itâs easy to tell yourself to only spend money that you have, but thatâs way easier said than done. Especially when a credit card gives you the ability to spend even more.â
Itâs true, and the student credit cards on the market arenât much help. With high interest rates, confusing fees, and the ability to rack up big bills, itâs easy to see why so many students donât see them as a viable option.
But while he never wanted to get a credit card in college or law school, he does have one now that heâs graduated and working at a law firm. However, his worries havenât just evaporated. Credit cards and money in general still make Cole a little uncomfortable, even with a job as an entertainment lawyer.
I asked him if anything has made him more comfortable with his finances over time. âI love the idea of being able to pay off my credit card whenever I want. I donât want to be stuck with a big bill, so when I learned I could pay it off whenever, I felt a lot better.â Needless to say, thatâs one of the biggest benefits of a Fizz card. To use Fizz, your bill must be paid off every day from your connected bank account. You donât even have the option of building up a big bill over time.
When I asked if he would have done anything differently during his years as a student, Cole said he wished he had started building credit in college. âSomething like Fizz wouldâve made me feel better. It also wouldâve been a lot easier to explain to my family.â
The conversation eventually turned towards money in general, not just credit. I wanted to know how Cole viewed his relationship with money. âI guess I would say Iâm decent with money. I donât work with a strict budget but I certainly live below my means,â Cole explained.
He made the point that for him, college felt like one single bill. Since Cole lived on campus and would frequent the dining hall, he didnât have to keep track of spending on groceries, utilities, rent, and other things that are a factor for him now. âHaving to deal with rent and other expenses has made me better with money. Again, Iâm not a huge budgeter, but I know how to put money aside for things that need to be paid for.â
Cole still feels like he has a long way to go, but since there arenât many young adults that consider themselves financial gurus, I told him not to be too hard on himself.
âHonestly, I havenât had much financial education in my life. Plus, I think that the younger you are, the less you feel like you need to have a financial plan in place,â he explained to me.
I also asked about investing and other parts of his financial picture. âI love my 401(k), but I donât feel comfortable having my own portfolio yet. I feel like Iâm not qualified to invest and I donât know how to approach it. Plus, what if everything goes wrong? Thatâs a worry of mine, so stashing money in a savings account feels a lot safer to me even if it doesnât make as much sense from a return-on-investment perspective.â
Itâs remarkably easy to push financial planning to the side and not think about anything other than whatâs right in front of you. But while it might make you feel better in the short term, youâre not doing yourself any favors by skipping out on building your credit score and investing for the future. Fizz was created to be the financial ally for young adults, so that no one has to feel overwhelmed or intimidated by their finances - and particularly by building credit.
I thought that Cole did a great job of putting his finances in perspective. While even heâll admit heâs not the most financially savvy person out there, heâs working to become better. âMy solution is baby steps. I want to become better with budgeting and better with my finances overall. Thatâs how Iâll overcome my worries.â
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