Money management is hard work, but it really doesn’t have to be. Financial buzzwords like interest rates, hidden fees, and credit score can seem frightening, but getting tips from actual financial experts (like the ones at Neo Financial) is a great way to not only conquer your banking, but make it fun to do so.
Speaking of Neo Financial, we’ve teamed up with their money experts to put together this list of 8 financial tips that all millennials and Gen Z’s should know. But first, let’s get into Neo Financial. Sure you might have seen their branding around town from your favourite restos to coffee shops and more, but who is Neo?
Well, first and foremost, Neo is a fintech company that’s building a better banking experience for Canadians. Neo is reimagining spending, saving, and rewards, by using innovative tech to simplify Canadian’s finances. Oh, they also do that while creating rewarding experiences and building a community for Canadians. And that’s why we’ve teamed up with Neo, ‘cause they are the banking experts we definitely need in our lives.
So, let’s get to it!
1. Get a high-interest savings account
But don’t be fooled by big banks that offer high introductory rates- they don’t tend to last long. Make sure you read the fine print, because there might be some strings attached. From higher initial deposit minimums, to minimum balance requirements, to fees for basic transactions- it can all add up. So make sure you’re choosing a high-interest savings account that will benefit you in the long run, not just right now.
The Neo Savings account was designed to help you grow your savings and reach your goals faster. For starters, their interest rate is 1.30%*. That means you can earn up to 130x† more interest than at traditional banks, where the average interest rate is 0.05%. Neo Savings also compounds interest daily and pays it out to you monthly, so you can rest easy knowing that your money is working for you.
2. Spend strategically with your credit card
There are plenty of ways you can use your credit card strategically. Using your credit card at businesses and online brands that offer cashback rewards is a great way to reduce your credit card bill, especially when you earn cashback on your everyday spending for groceries, gas, dining, and more. For example, Neo’s credit card offers an average of 4-6% cashback at thousands of local and national businesses, including most major gas and grocery stores, pharmacies, restaurants, cafes, plus Amazon, Doordash, Netflix, Spotify, and more.
3. Treat your credit card like your debit card
A great way to avoid paying interest is to make sure you never spend more than you can pay-off. Don’t charge credit for what you don’t have. If you use your credit card as a debit, you can avoid interest charges and debt while reaping the benefits of rewards like cashback earnings and points (well, if you’ve got a Neo Mastercard at least!).
4. Avoid unnecessary banking fees
Canadians pay an average of $220 bank fees per year, just to keep their money safe. After a while that starts to add up, meaning your hard-earned money is leaving your bank account for no other reason than to keep your money in a bank.
You shouldn’t have to pay fees to do your banking. Try something digital, like Neo Financial where you pay no monthly fees or minimum balances, but still get all the benefits of unlimited free transactions, Interac e-Transfers, paying bills, all from one free account. Neo empowers you to earn more out of your everyday spending and saving, by replacing a lifetime of bank fees.
5. Simplify your finances
Technology has improved almost every aspect of our lives, and the time is now to embrace digital solutions when it comes to your banking. Using proper tools to help make healthier financial decisions is key, but the trick is to find a system that keeps it all in one place.
And that’s why we bank with Neo. No more unused loyalty cards, no more mismanaging your savings, no more missed monthly payments. No reward goes wasted with Neo, because it’s all done automatically. Neo is easy as they come. Spend, save and earn rewards, all in one digital experience. The Neo app allows you to seamlessly manage your money, and reward yourself in doing so. After all, Neo’s technology was developed with the needs of Canadians in mind, and the financial experience we deserve.
6. Know what impacts your credit score
Before you embark on your financial journey, you’ll have to understand the facts that affect your credit score. There are five factors that are weighed when calculating your credit score. Payment history, hard credit checks, credit utilization, credit history, and public records. Want to learn more? Check out Neo’s blog for a full rundown.
7. Learn how to improve your credit
Whether you’ve got good or bad credit, it’s only natural to want to boost your credit score. Luckily, if you stick to these 8 simple steps, you’ll be on your way to checking off those financial goals you’ve been after. Creating a budget, paying down existing debt, paying bills on time, focusing on credit utilization, applying for new credit sparingly, getting a secured credit card, transferring balances with caution, and keeping old accounts open are all things to keep in mind when that help raise your credit score.
8. Create a budget, and stick to it
Create an honest budget based on what causes your credit to swing positive or negative. Your budget helps you get realistic about your spending habits so you can set achievable goals, especially when it comes to getting out of debt.
There are a ton of popular budgeting tools and templates out there, and it’s important to pick a plan that is easy for you to stick to. Make sure you consider annual expenses, like taxes and insurance fees, as well as long-term and emergency savings for any of those unexpected expenses that crop up.
Well folks, there you have it! There are the 8 tips everyone should know when embarking on their financial journey. For more useful tips from Neo, make sure to keep an eye out on their blog.
And don’t forget, you can set up your Neo account with a click of a button- simple as that and you’ll automatically get $25 in your account (Neo’s treat!).