Banking
Cosigners
A person who agrees to be a partner in your bank account. they guarantee debt for someone who cannot qualify on their own. Unfortunately they cannot be removed. you’ll have to open a new bank account. The good news is they cannot access your funds, but they can see your activity. they will have put themselves as a co-signer when you got the bank account and you can ask the bank about it if your abuser won’t tell you.
Joint Owners
A joint owner is someone who is on equal footing in the account. You both can take out and put in money, and your credit scores are combined. You are both responsible for any debt incurred. You can’t remove them from the account either, and would have to open a new one. on the bright side they can’t remove you. Once again, they can see your activity.
Designated Beneficiary
This is a person who has been identified as the person to divide your financial resources when you are dead. It’s morbid but if they somehow didn’t end up a cosigner or joint owner, they may have weaseled in as the benefactor. This also means they can override any will you left. This one you can remove from your bank account and they don’t have to know about it. This term is also used in life insurance policies but we’re specifically referring to bank accounts.
Getting a New Bank Account
picking a bank is hard without knowing what you need. So take your time to figure out what you need and want out of it and talk with the different banks without committing. There are online options and smaller bank options as well as larger more versatile banks. For help thinking it through click or tap here
Banks are there to serve you, not sell you things, so it’s a tip off if they’re pushing more than they’re supporting. focus on getting yourself a practical savings or checking account. They will walk you through the steps and talk you through whatever you need.
Credit
There is a difference between checking and savings accounts. Mainly, checking is for accessing regularly and savings is for building up money, not pulling it out. There are different limits to how much you can access within a week or month.
Debit cards are essentially immediate exchange of money. It comes straight from your account and you don’t pay the card off at the end of the month. Credit cards are basically a promise to have that money ready at the end of the month while debit cards function off what is already in your account. you go through a credit company and you pay the company rather than the places you are purchasing from. Debit cards are subject to overdraft fees while credit cards have late payment fees.
Credit is important to help you to be able to finance things, get loans, and apply for apartments. It proves you can pay off things on time. However, you can get into murky waters if you don’t keep track of paying it off and end up racking up both bad credit and late fees. You can’t go into debt as easy with a debit card like you can with a credit card.
For credit cards, search the following fees:
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What is the annual fee? This is what you pay to use the card for a year.
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What is the annual percentage rate (APR)? This is how much interest you pay every year. A lower APR means you pay less interest. That costs you less money.
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Are there other fees? How much will it cost if a payment was late? What will it cost if you go over your credit limit?
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What is the grace period? This is the time between when you spend money and when the card charges you interest. A longer grace period is better. Look for one that is at least 25 days long.
For a debit card, find out what the fee is if you:
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have a checking account
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use a debit card
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get cash from ATMs at other banks
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have less money in your account than the bank requires
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spend more money than you have in your account
Credit cards are also safer than debit cards because legally if someone steals it they’re stealing from the credit card company not you. However debit cards are cheaper. With a debit card, you can get cash from a register rather than an ATM and avoid fees. You also don’t pay interest on a debit card like you do a credit card.
good RX is great for getting your prescriptions cheaper.
Health Insurance
This is your best resource for finding good coverage. Click here
Medicaid is another good option if you’re unemployed or your job doesn’t offer it. Eligibility depends on your state’s legislation, so that’s worth a quick google search.
It’s a good idea to check if your job gives you healthcare coverage. Some places like Starbucks give 401K’s, health insurance, and six free therapy sessions. (we are not sponsored by Starbucks)
Obama Care under the ARPA helps those within 100% to 150% of the federal poverty level (FPL) could qualify for zero-premium silver
plans, while those between 150% and 400% of the poverty line could receive higher subsidies overall. Essentially, it gives you federal help for your insurance, making sure you get your basic needs met. It’s worth a look to see if you qualify.
Sometimes manipulators won’t take you off their insurance. You can still get your own insurance and list it as primary and theirs as secondary. The only problem is they may be able to see what doctor you go to etc. The best thing to do is call your provider and your parents provider. If they don’t have answers, ask for a supervisor. This is a situation where pushing as high up the ranks as you can go to get answers is okay. Sometimes your insurance company may say they won’t cover something because you’re technically on your parents. If yours is set as primary that shouldn’t happen, but sometimes it does. Once again, get on their tail about it. Their job is to help you.
College
A quick note before we dive in, it’s entirely okay if you don’t know what you want to do yet. You can start out getting your basics done at community college, or take a gap year to start working and figure out where you want to go. This doesn’t have to be a straight out of high school thing. You also never have to go to college.
College
Before Looking for a college, check if your job would potentially help you pay. Some jobs like Starbucks will pay for you to go to online universities after you work with them for a certain period of time.
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Apply Texas
Scholly
We’re based in Texas so a go to in the lovely southern state is ApplyTexas.com. tap or click the icon for more
An app for finding scholarships is Scholly. It costs 4.99 for a month, 24.99 for six months, and 34.99 for twelve. find it in the app store or tap or click the icon.
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Common App
Common app is free and helps to apply for colleges around the US. find it in the app store or tap/click the icon
Coalition for College
Coalition for College is also a free program that helps you fill out applications. tap or click the icon for more.
Loans
Federal
Federal loans have two types.
Direct subsidized loans are for undergrads who's family shows financial need. These loans have no interest that accumulates while the student is in school or the grace period after (usually about six months)
The other type is direct unsubsidized loans which are not based on income and can be available to undergraduate and graduate students. Interest starts as soon as you get the loan.
There are annual and lifetime limits on both options and once you reach those limits there are options for PLUS program loans. because of the limits you might not be able to cover all of college.
Private
private loans depend on the lender but typically require a credit and income check to make sure you are financially stable, and if you aren’t they’ll ask for a cosigner such as a parent or guardian. the terms are different depending on the lender.
To check out a list of private student loans click here
Calculate the total cost of the loan before getting it and Check all loan options for the best overall offer and check the interest rates and how that will impact the total.
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Pay attention to...
Fees
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Origination Fee
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Administrative Fee
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Processing Fees for payment types
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Processing Fees for paying
Payments
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Down Payment
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First payment
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In between payments
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Last payment
Penalties
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Late payments
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not paying off loan on time
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Paying off early - Look for payment increase or big payment at end
Transportation
Getting out from under someone is tough in itself but also having to find your own transportation without a car is stressful.
A good idea is to check and see what buses go by you and how much it costs, as well as seeing if you can bike or walk places. Some cities have fantastic train service and decent prices so check that out too. Locals will probably have a pretty good estimate of its usefulness.
If you haven’t picked an apartment yet, see if you can get one within walking distance to your most important places, like work, school, and the grocery store.
Another way to get around is carpooling with friends or coworkers and chip in for gas.
Before you look into getting a car consider getting an E-Bike instead.
While still expensive, they are cheaper than a car and give you an effective way to travel for a solid distance. invest in a parka to cover it during rain or snow.
In most states you must have a certain license.
Car Insurance
First up, get car insurance before you actually buy a car. Have the make and model you want in mind so you can get accurate estimates but don’t actually buy the car yet. Sometimes you can’t even drive it home until you have insurance.
Insurance companies look at your credit score. If you have good credit that is absolutely fantastic, but most people won’t and that’s okay. While it will make it more difficult and possibly a bit more expensive, there are still companies who will consider you anyway.
Shopping around is a good idea. You can get quotes from several companies so you can find the best prices for you. USAA is known to be the best insurance company for people with low to no credit. Once you get on your feet and have a decent credit score, you can shop around again and find companies that will give you even better rates. To have a look at rates in different states click here
Another great resource is Lemonade Insurance. They cover apartments, cars and more. Find it in the app store or click/tap the icon
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Car Loans and Financing
The difference between financing and loans is in how you apply. If you borrow through your dealer, they'll typically send your details to multiple lenders to see where you qualify. With a car loan, you apply directly with one lender and can get a rate quote before you submit your application. Most of this is tied to your credit. Getting pre-approved rates from several lenders is another important bit, because it helps you see how different lenders will charge you. It’s also helpful so you can set your budget.
In a loan, you agree to pay the amount financed, plus a finance charge, over a certain period of time.
Once you start getting pre-approvals, you'll have 14 days to get as many as you want without having a bunch of hard credit inquiries on your credit report it will only show up as one for those 14 days. A hard inquiry gives a lender a complete view of your credit history, but might negatively affect your credit score. Pre-approvals are generally good for 30 or 60 days, depending on the lender.
If this is the route you go try to make sure you set up automated payments to avoid late fees, now just focus on making sure you have that money so when it does go through you’re not in the red.
On the other hand, there are two options for financing. one is direct lending and the other is dealership financing.
Direct lending means borrowing money from a bank, credit union or finance company.
Dealership financing is applying through a dealership. (shocker.) Both you and the dealer enter into a contract. You buy a car and agree to pay within the deadline along with finance charges. The dealer typically sells the contract to a bank, finance company, or credit union. The bank will service and collect your payments.
There’s a benefit to going to your bank. You will likely receive lower interest rates. Dealers tend to have higher interest rates so financing through a bank or credit union can offer much more competitive rates.
You can take out a loan or finance a car with little to no credit. The prices will be higher and some lenders will not be willing to work with you. Don’t give up, there are people out there who will. Credit info and further explanation
Consider all options before getting a loan
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What options are there besides a loan? 2nd job, plasma, wait, save up, pawn, etc
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Calculate the total cost of the loan before getting it
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How much is the loan’s total cost (price check)?
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Check all loan options for the best overall offer?
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Principle + Fees + Interest
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What are the payment terms/penalties on the loan?
There are specific lenders that work with people who have little to no credit.
There’s also credit unions that tend to accept people from rough financial situations. They can give you “credit builder auto loans” which do exactly as the name says. Both car and credit for you, my friend. You will have to be a member of the union before you can access the loan.
If you’re a student or recent graduate, congrats, there are specific loans and programs that help get you a vehicle. they’ll use things like GPA, income, and down payment to decide on the loan.
Filing Taxes
The entire walkthrough is best read here but below we have the basics and some definitions for you, as well as other links
You’ll need to have the forms that document your income and side jobs. If you have an side gig that makes a certain amount of money, you can deduct things you buy for that gig as work costs.
It’s best to do it online so you don’t have to deal with postage and addresses. There’s several applications like TurboTax and others. these will help make the process more smooth for you
Some of the Forms:
W-2’s: This shows important information about the income you've earned from your employer, amount of taxes withheld from your paycheck, benefits provided and other information for the year. You use this form to file your federal and state taxes.
Note: a W-9 is a form you submit if you're doing independent contractor work for someone.
1099’s: Is a collection of tax forms documenting different types of payments made by an individual or a business that typically isn't your employer. The payer fills out the form with the appropriate details and sends copies to you and the IRS, reporting payments made during the tax year.
reports of other income
tax deductions and receipts
There are some things that can impact your taxes.
Changing jobs, opening a new savings account, selling stocks or mutual funds, and paying college tuition or student loan interest are all things that impact your taxes
There are also several ways you can deduct even more or get credit. TurboTax has a list of some of them. Click here and go to the 3. It will say Consider relevant tax deductions and credits
IRS Freefile Click here for first time tax filers.
If you’re prepping to escape an abusive household some tips we’ve found helpful are to always have a go bag with your essentials and to start quietly liquidating your assets i.e. selling extra clothes, video games, and other things you don’t need and putting that money somewhere your guardian or abuser cannot find it. Bury it in the backyard if you have to. Then you’ll have something to start out with.
To organize it you can use Excel spreadsheets, a piece of paper, or literal envelops where you put each amount of cash into the labeled envelope. There are several apps that can help, one of them being Goodbudget, which has envelops you organize with the amounts you have into sections for each category (groceries, gas, cellphone, internet etc.) and then whenever you spend you plug it into the app and it will calculate what you now have
Budgeting can feel extremely restraining but it’s an excellent way to keep track of your money, avoid debt, and spend less than you make so you’re not toeing the line. The purpose is to help you be able to see what you can cut back on so you can make ends meet. It’s also reassuring to know exactly where you stand with your funds
When you budget you are deciding how much you will need each month for your expenses and making sure your next paycheck splits into those envelopes to help you get there.
Budgeting for Beginners
Example categories:
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Periodic expenses
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Cell Phone, Car Insurance, Credit Card Payment
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Car Inspection/Registration
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Example - $40 monthly cell bill = Saving $10 per weekly paycheck
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Specific needs/wants
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Apartment Deposit ($480 in 12 weeks, $40 per week)
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Regular Car Maintenance (Oil Change especially)
Surprises
Surprises can be negative or positive
Negative surprises or Emergencies - can be medical, car, something break, ticket, unexpected fee for something you have to do, work attire
Positive Surprises – friend comes into town, something free that costs a lot but needs you to kick in a little to make it work
Once you have your categories, double check how much buffer you'll need each week/month to keep cushions so you don't lose your mind.
Coupons
A good time to use coupons is when the product is on your list or in the Plan, actually saves you Money over the generic or Non-Couponed item.
It's not a good time to use a coupon when the product isn't on the List/Plan, you don’t really need it, and/or it costs more than generic or similar non-couponed Item even after the coupon.
A big tip is starting with only needs and an emergency fund that you’ll slowly add money to so you can cover unexpected expenses. Aim to have $500 in Emergency Savings – Give yourself 25 weeks which is $20 per week
Create a list of expected spending for the week and money you have from last week. This helps you plan to spend less than you make.
Go ahead and save money for later as well as strike a balance to save with a purpose rather than have money burning a hole in your wallet or stockpiling. pay attention to your categories and prioritize them.
Things to consider when working with a budget
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How much do you have from last payday?
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you may have Categories that don’t have money planned for them every week
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What do you need to buy or save for until next pay day
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What are your priorities?
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periodic savings at least needs high priority
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Estimate costs in priority order until you’re out of money
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Carefully consider all aspects of a loan
Grocery store tips
Make a shopping list before going to the store so your hungry stomach doesn’t guide you.
prices do matter and vary from store to store so keep an eye out for the best places and best prices that benefit you.
generic brands are a lovely way to get what you want cheaper. Sure they’re a little less “quality” but often not enough to notice.
Also sometimes it’s best to just pick one store rather than running to several to get the best deals only to run out of gas. Aldi’s, Five Below, Fiesta Texas, thrift stores etc. Thrift stores can be hard if you don’t have time though, so don’t shame yourself for having to snag a pair of jeans from Walmart for a little more money. Dollar General and Dollar Tree both have some basic freezer meals as well as supplies like toilet paper and cooking utensils.
A tip we’ve heard is downloading the McDonald’s app. They tend to have deals for several free food options regularly with cheap purchases.