which apps do you find the most helpful in managing finances? The app associated with the bank you use is always my top pick. It makes it easy to keep track of your spending, deposit checks and get alerts. In addition, Venmo is also one of the easiest ways to split the check with friends and pay roommates your share of utilities. And please, if you have banking details on your phone, then use a passcode! Don’t make it easy to swipe into your phone. what are some of the best ways to tackle student debt? • The first step in the process is unearthing all your student loans. There are some simple ways to do this. Go to the National Student Loan Data System for finding all your federal loans and you can pull a credit report in order to see your private student loans. • The next step is to create a plan. For those with federal student loans, that means determining if they’re eligible for a forgiveness program or an income-driven repayment program. • Those with private loans may want to consider refinancing to a lower interest rate. • Ultimately, one of the single most important things anyone with student loans can do is simply make their payments on time. Going into delinquency or default really restricts future options for federal programs or to refinance. how can recent graduates save money, even when they feel that every penny is already spoken for? The first step is to know your cash flow. That’s really just another way to say budget. You must know how much is coming in and how much is going out, otherwise you’ll never get a firm grasp on your financial picture. It’s only when you have this information that you can make informed choices. For some graduates, every penny really is spoken for and even saving 1% into a 401(k) or savings account isn’t an option. But for many, it’s about establishing the habit of savings early, even when you can only put aside $5 per paycheck. When all you can put into a savings account is less than a craft beer costs – it can feel pointless. But if you establish the habit early on, it’s much easier to increase how much you save when you’re earning more and there’s less of a debt burden on your back. Assuming you can magically make a lifestyle shift in your late twenties to early thirties to start saving when you never have before probably won’t shake out like you think it will. what does getting “financially naked with your partner” entail, and why is this important? While I wish everyone would bring a credit report on a first date, I know that’s never going to happen. Instead, I’ll settle for people getting financially naked around the time they realize their partner is someone they could see spending the rest of their lives with. Getting financially naked means having a transparent and honest conversation about money. It doesn’t have to happen all in one night, in fact I’d encourage it to be a series of conversations, but it’s a way to learn more about your partner’s relationship to money and expectations long-term. It’s important to discuss debt (student loans, credit cards, mortgage, personal loans, auto loans, etc.) as well as net worth, credit scores and reports and financial goals. If one person has debt and the other doesn’t, I encourage the partner without debt to share his or her net worth in order for it not to be a onesided conversation. The process of getting financially naked is important because money is known to cause significant stress in marriages and gets cited as a leading cause for divorce. Talking about your finances early and often can help offset some of this pressure. Plus, why would you want to be legally tied to another person and his or her financial life without knowing the full picture first? Erin Lowry is a millennial personal finance expert, speaker and author of “BROKE MILLENNIAL: Stop Scraping By and Get Your Financial Life Together.” She’s also the founder of BrokeMillennial.com. Lowry and her work have been featured on CBS Sunday Morning, CNBC, Fox & Friends, USA Today, Wall Street Journal, Cosmopolitan, Forbes and NBC News. WomanToWomanMagazine.com 43
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