Credit-Care Game Plan Offers Route to Better Finances for Gen Y

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NewsUSA - America's Gen Y -- 87 million people age 18 to 34 -- are stressed out over finances, according to Western Union Payments MoneyMindset Index survey. The survey reports that half of Gen Y respondents feel increased stress about financial obligations; 40 percent say their financial situation has worsened in the last six months.

However, the survey, conducted quarterly by Javelin Strategy & Research, also has good news.

"In spite of the difficult economy, Gen Y is engaging in smart financial behavior to help build their better future," says David Shapiro, senior vice president, Western Union. "This survey shows Gen Y using tools such as online banking and online bill pay to manage their budget and credit standing."

Here are some tips to get you started:

Credit and Debt Game Plan:

* Establish the Base. Open a bank account, and start saving and paying down debt: online banking, online bill payment, automatic deduction and mobile banking are helpful tools.

* Establish a Budget. Check out online budget management tools to get your budget started. Also check the applications available for smart phones.

* Establish Credit. Approximately 30 percent of your credit score is based on bill payment history. Look into scheduling automatic payments through your banks or biller.

* Establish Credit -- Part II. Even if it's just one bill payment, establish credit in your name.

* Check Your Credit Scores. Know how to obtain your credit scores and read them. Forty percent of Gen Y-ers have not seen their credit scores in the past year, and 44 percent have never seen them. Check sources such as annualcreditreport.com and myfico.com for how-to's.

* Set up an Emergency Fund. Set up an automatic rainy-day savings plan now.

* Work It Both Ways. Understand there are two paths to financial success. Make more money and save it. Or spend less money and save it. Or do both.

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