"I have no credit. I don’t know what to do, I’m very overwhelmed. If you can help, please let me know. Thank you!": Starting out in life with no credit, unsure how to navigate finances. How can I begin building a solid financial foundation?

Hi Money Minder,

Hey there! I’m a 32-year-old college student from the good ol’ US of A just trying to figure out this whole adulting thing. I’ve been pretty sheltered and have zero credit history. I’m working part-time and bringing in around $900 a month (that’s about 761 euros, by the way). I know I need to get my finances in order, but I have no clue where to even start. Should I dip my toes in the credit card world? If so, which one should I go for? And is there a bank account out there that’s perfect for someone like me? The one I have now is draining my wallet with monthly fees for not having enough cash in it. I’m feeling pretty lost and overwhelmed. If you’ve got any tips or advice, I’d really appreciate it. Thanks a bunch!

Farewell,
Financially Frazzled

Response from THE MONEY MINDER:

Hello There,

Congratulations on taking the first step towards financial literacy and independence. It’s completely understandable to feel overwhelmed, but taking control of your finances is a crucial step towards securing a stable future.

Firstly, it’s wise to establish a solid foundation by opening a new bank account that offers no monthly fees and better terms than your current account. Look for a basic checking account that meets your needs and offers features like no minimum balance requirements. This will help you avoid unnecessary fees and manage your money more effectively.

As for building credit, a secured credit card could be a good starting point for someone with no credit history. With a secured card, you provide a security deposit as collateral, which can help you establish a positive credit history over time. Make sure to choose a reputable credit card issuer that reports to all three major credit bureaus to maximize the impact on your credit score.

In terms of budgeting, start by tracking your expenses to understand where your money is going each month. Create a budget that allocates your income towards essentials like rent, utilities, and groceries, while also setting aside funds for savings and emergency expenses. This will help you stay on track and avoid unnecessary spending.

Remember, financial wellness is a journey, and it’s okay to seek help and guidance along the way. Consider reaching out to financial advisors, community resources, or online tools to support you in making informed decisions about your money. Stay committed to your goals and take small steps towards building a secure financial future. All the best from THE MONEY MINDER.