Top 10 financial mistakes young people make
This is a great list from the Financial Post that all young Canadians should read. And #1 on their list is a topic near and dear to our heart.
1. Misunderstanding credit cards
Services like Paypass are making them even easier to use. But credit cards are often misunderstood by young people, with small purchasing decisions often leading to long-term problems. Whether it’s cash advances, large balances, only making minimum payments, paying late or not paying at all, the small piece of plastic can be much more trouble than you realized. There’s also signing up for too many, unnecessarily increasing your limit and wrecking your credit rating.
“Credit card debt is spending your future income before you’ve earned it, and not magic money,” said Lisa Yanaky, a young woman from Toronto.