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Financial literacy is, unfortunately, not taught in schools, and all too many people never learn how to adopt and maintain healthy financial habits.
Thankfully, Vee, a financial writer and money mindset coach on TikTok, shares tips and techniques to help viewers minimize money stress and begin financial planning. She recently shared a few things she avoids to maintain financial stability.
Three financially literate habits to avoid in order to be good with your money:
1. Apply for store credit cards at checkout.
Vee admitted that when she was younger, she fell victim to these attractive credit card offers.
“What I didn’t know at the time was how those applications affected my credit,” she said, warning younger people not to be tempted by the 25% off deals for in-store sign-ups.
“Every time you apply for new credit, it can take as much as 2 to 5 points off your credit score,” she explained.
While credit scores are incredibly exclusionary and difficult to understand, they are also very important when looking to purchase a home, take out a loan, or maintain financial stability in adulthood.
But when you open a new line of credit, like a retail store’s credit card, the credit company “hard pulls” your credit report to review as part of the approval process. Whether you’re accepted for the card or not, the more credit reviews you approve by applying, the lower your credit score.
The same goes for the length of credit—if you’re approved for a card, aka a “new line of credit,” your credit history is affected, and typically, your score lowers.
By maintaining consistent payments on credit cards and loans, the lowest possible credit balance, and fewer new lines, you can build up your credit, even if it’s just a few points at a time. As many people have unfortunately realized, it’s much easier to lower your score than it is to raise it — the latter takes commitment and planning.
2. Send coupon codes to their primary email address.
When signing up for a store’s email list, a holiday coupon, or any promotional content from a brand, Vee advised using an alternative address instead of your primary inbox.
“That way, I’m not tempted by offers flooding my regular inbox every single day,” she explained. “When I’m ready to buy something, I will then go to that email address to see if there’s a coupon.”
For compulsive shoppers and impulse spenders, this rule can certainly help. When you see the nonstop discounts and offers in your email, it’s easy to justify a purchase. Still, by compartmentalizing, you can better avoid triggers that cause you to spend unnecessary money.
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3. Browse online or in-store for fun.
“I go to the store with a purpose,” Vee stated. “I don’t go to kill time. I don’t go because I’m bored.”
She added that she rarely shops with other people to focus on only buying what she needs. “I don’t have to worry about anyone slowing me down or causing me to spend more time in the store,” she explained, “which will likely result in more browsing and impulse shopping.”
This money coach ultimately suggests people with shopping or spending struggles avoid putting themselves in vulnerable situations that indulge their bad habits. If you’re in Sephora, scrolling on DoorDash, or perusing Target after a long day at the office, you’re only setting yourself up for failure.
Zayda Slabbekoorn is a News & Entertainment Writer at YourTango who focuses on health & wellness, social policy, and human interest stories