Let's Talk MONEY HABITS! How I Saved Thousands & Established Good Credit By Graduation
Hey guys, it's Joi here, and today we're talking all about money. I'm so excited to partner with Capital One on this video to show you the Smart Money habits that helped me prepare for my financial future in college. These habits helped me save thousands by graduation and help me build great credit in my early 20s. In today's video, we will cover how to establish a consistent income, manage saving and budgeting, get your first credit card, and, most importantly, how to build credit responsibly early on.
One of my goals is to help you guys transition from high school to college and then finally college to adulting. A big part of that is learning about credit, budgeting, and saving. Before we begin, comment down below one money lesson that you've learned as a college student.
The first thing we're going to talk about is establishing an income. College is a great time to get serious about having a consistent form of income, whether getting an on-campus job or starting your own side hustle. When I was a college student at the University of Southern California, I took on various income sources. Those included getting internships at companies like NBC Universal and Google, starting my own hair care business, and working out on a campus job. As a college student, there are so many different ways that you can begin to make money. They're both traditional and non-traditional ways. On the traditional side, we have things like campus work-study or getting an on campus job. On the non-traditional side, there are things like getting your own side hustle, tutoring high school students, or even walking dogs.
Your side hustle can also be things that are more passionate oriented like starting a photography business. As I said, I had a mix of both while I was in college. I worked at my university center for Black Cultural and Student Affairs as an on-campus job. And I also had my own business where I worked as a social media influencer, and I also own a haircare business. Now that you know how you can make consistent income as a college student let's get into how you can actually budget and save money responsibly. All while still dealing with all the expenses that come with being enrolled in university and living away from your parents for the first time.
By the time I graduated from college, I had a five-figure savings account. This is not to brag or boast, but it's just to position you guys to know that having big savings at graduation is possible. I want to say that a lot of this is attributed to the privilege I had of having a full-tuition scholarship as well as support for my family when it came to some of my living expenses. But secondly, it came with having that consistent income and a budget and saving strategy. The most simple budgeting strategy I like to use is the 50 30 20 rule for budgeting and saving. For this strategy, you allot 50% of your income for need. Those are things like rent, food, your car, you secondly, a lot 30% of your income for things that are your wants so that can include hanging out with friends or streaming services, and the last 20% you'll use for saving and investing. If these percentages don't work for you, you can adjust them to your situation and expenses. Just know that everyone's financial situation is different. And a lot of these factors can be dependent on things in your life, like loans or whether you take care of a family member and things like that. So try your best to adjust it to work for you.
Once I developed ways to earn income and my savings strategy, I thought it was time to sign up for my first credit card so I could start building a credit history. I got my first credit card as a freshman in college, and it was a credit card that was specifically targeted to college students. It also had different perks for me that made sense as I was starting. I consider signing up for a credit card because your credit score is used for so many different things, especially when you first graduate from college. For example, you need credit to rent an apartment or even finance a car. I opted in for a credit card early that I was able to graduate with a great credit score. As part of my partnership with Capital One, I recently spoke on a panel for their first-gen focus program. This program is dedicated to supporting first-year first-generation college students through the three pillars of financial well-being, personal wellness, and career readiness. So during the kickoff event, the best practices for credit were mentioned. I'm going to break down two tips that I took notes on during the event.
Tip number one is to make sure you are as educated as possible before signing up. For example, make sure you know the essential terms like a credit score. A credit score is one factor that banks use to determine whether they will lend you money. Like I said before, this can determine whether or not you get your first apartment or can make other big purchases.
The second lesson I took away from the event is to take advantage of free credit management tools once you have signed up for your first credit card. For example, Credit Wise from Capital One provides alerts when there are meaningful changes to your credit score. Credit Wise also provides resources to see the potential financial impact your purchases might have before you make them. It's free, and you don't have to be a capital one customer to use the app. So now that I've talked about the importance of building credit early, you can now begin your credit journey. Using a car like a journey student car from Capital One may help you build credit today while building your financial tomorrow. Plus, they just announced a new streaming benefit for new cardholders, as well as a new contact list feature that allows tap to pay.
I love that Capital One has taken a smart approach to evolve their benefits to meet students' needs. New journey cardholders can now earn up to $60 in streaming service subscription credit, in addition to the unlimited 1% cashback on every purchase. Plus, when cardholders pay on time, rewards boost to 1.25%. It's so smart that this card reinforces good behavior. The new stream service credit enables new account holders that pay on time to earn $5 per month for 12 months toward more than 25 eligible media streaming subscription services. Just a disclaimer that exclusions apply credit approval is required in terms and conditions apply. Go to this URL for more information about the card. Before we finish up our conversation on credit, it's important to note that only responsible behavior and products may help enable better credit. In other words, only your financial behavior can help you build good credit. So keep in mind these points before you begin anything.
One, you need to know what you're going to use the credit card for. Two, if you don't think you're ready for a credit card, you may think about becoming an authorized user on your parent's account if they have good credit. This way, you can begin building your credit off of their positive history. Three know that many factors can affect your credit score, not just one credit card.
I wanted to end this video by saying I'm so happy that I could create this guide in partnership with Capital One because it is something that I wish I had when I was entering college. You all know that I only partner with brands that I genuinely love. Capital One has proven its dedication to college students, especially first-gen college students like myself. Make sure you go check out Capital One's new benefit from their journey card at www.capitalone.com/journey if you're ready for your first credit card. If you're a first-year, first-generation college student, make sure you apply for capital one's first-gen focus programs. You can check out the links to both of these things in the description below. Lastly, remember that this video is just a starting point. Use all the resources around you and be proactive to ensure that you're building the best financial future. If you enjoyed today's video, leave a comment down below letting me know one thing you plan to implement into your personal finance journey, and I'll talk to you guys next time. Bye
Learn more about the Capital One Journey Student Rewards Credit Card: https://bit.ly/journeystudentcard Apply to be in the Capital One First Gen Focus Program: https://bit.ly/first-gen-application
