The “That Girl” Ultimate Financial Understanding Guide

Hello lovelies! I’m going to be real with you—high school does not prepare you for real-world money problems. They don’t teach you how to do taxes, how to save money the right way, or how to avoid common financial mistakes. Most of us have to learn as we go, and sometimes, that means making expensive mistakes. But you? Girl, you’re already winning just by being here! 

This guide is here to help you navigate the basics—finding the right bank, understanding credit cards, and building your credit score. Think of this as your big sister’s financial cheat sheet, guiding you to become that girl—but make it financially savvy edition.

Friendly Reminder: Always consult a financial advisor or banking professional before opening an account or making financial decisions.

Finding the Right Bank for You

Not all banks are created equal. Some are great for students, while others will nickel-and-dime you with fees. Look for a bank that doesn’t charge monthly maintenance fees. Some banks will take money from your account just for keeping it open, which is completely unnecessary when plenty of banks offer free checking. Mobile banking is another important factor. You want a bank with an easy-to-use app so you can check your balance, deposit checks, and transfer money quickly. If you’re planning to save, make sure your bank offers a decent savings account with a competitive financial interest rate so your money isn’t just sitting there losing value.

Some banks also offer perks when you open an account, like financial sign-up bonuses or cash rewards. Always ask about any special promotions when signing up. Some offers require you to enter a promo code during the application process, so double-check before you submit anything.

Credit Cards: The Do’s and Don’ts

A credit card can be your best friend or your worst enemy, depending on how you use it. Getting your first credit card before college can be a smart financial move if you’re responsible. Having a credit card early helps build your credit history, which can be crucial when it’s time to get a car loan, rent an apartment, or even apply for certain jobs. But there’s a right way to use credit cards and a wrong way.

The best thing you can do is pay off your balance in full every month.

This keeps you from paying high-interest fees and helps build your credit score. Look for student credit card perks, like cashback rewards or no annual fees. Many banks offer sign-up bonuses if you spend a certain amount within the first few months, but don’t overspend just to earn a bonus.

Maxing out your credit card is a mistake. Just because you have a $1,000 limit doesn’t mean you should spend $1,000. Keeping your spending below 30 percent of your credit limit is better for your credit score. Another mistake is only making minimum payments. If you do this, you’ll end up paying way more in interest over time. Finally, avoid opening too many credit cards at once. Every time you apply, your credit score takes a small hit, so be strategic.

Credit Score 101: Financial Distress or Financial Freedom

Your credit score is a big deal. It affects your ability to buy a car, rent an apartment, and even get better interest rates on loans. A good credit score can save you thousands of dollars in the long run.

One of the easiest ways to improve your credit score is by asking for a credit limit increase. If you’ve had your card for a year, have been paying on time, and recently got a raise, you can call your bank and ask for a limit increase. This only takes a few minutes and helps lower your “credit utilization ratio“, which boosts your score.

Always make your payments on time. Payment history is the biggest factor in your credit score, so set up automatic payments to avoid missing a due date. Also, keep your oldest credit card open as long as possible. The longer your credit history, the better. If there’s no annual fee, there’s no reason to close an old account, even if you don’t use it.

The Credit Card vs. Debit Card Breakdown

Both have their place, but they serve different purposes. A debit card is a good starting point, especially if you’re getting your first job. You can only spend what you have, so there’s no risk of going into financial debt. However, a credit card helps build your credit score, which is necessary for bigger financial goals like buying a house or getting a car loan. A debit card won’t help your credit score at all, so while it’s useful for everyday spending, it’s not the best long-term financial tool.

Budgeting and Saving: The 80/20 Rule

Most people live paycheck to paycheck because they spend everything they make. You don’t have to be one of them. A simple way to start budgeting is by following the financial 80/20 rule.

Eighty percent of your money goes toward your needs and wants, like rent, groceries, and fun. The other twenty percent should go directly into savings. If twenty percent feels like too much right now, start with ten percent and work your way up. The key is making saving a habit.

High-Yield Savings Accounts: The Secret to Growing Your Money

Regular savings accounts barely pay any interest, meaning your money just sits there doing nothing. A high-yield savings account (HYSA) is a better option because it offers a much higher interest rate, allowing your money to grow over time. Banks like Capital One 360 and Ally Bank have solid options, and the difference in interest earnings over the years can be huge.

Checking Account vs. Savings Account

A checking account is for everyday transactions. Your paycheck goes here, and you pay bills from it. A savings account is where you store money you don’t plan to touch often. Having both is smart because it separates your spending money from your savings. Some banks even let you set up automatic transfers from checking to savings, which makes saving easier.

Planning for the Future: 401(k) and Roth IRA

Retirement may feel far away, but the earlier you start, the better.

A 401(k) is a retirement account offered by some employers, and if your company offers a match, take advantage of it. If your employer matches up to 4 percent of your salary, that’s free money. Contribute at least enough to get the full match. Otherwise, you’re leaving money on the table.

A Roth IRA is another great option. Unlike a 401(k), you open this account yourself. You contribute after-tax money, and it grows tax-free. That means when you withdraw it in retirement, you don’t owe any taxes on it. Many people wait too long to start saving for retirement, but those who start in their early twenties will be in a much better position later.

Watch Out for Big Bank Fees

Some big banks have a reputation for sneaky fees. Monthly financial maintenance fees, overdraft fees, and even fees for talking to a human at the bank can add up. Look for banks that offer free checking and low fees. Credit unions and online banks often have better deals than traditional big banks.

Before opening an account, always check for hidden fees, especially overdraft charges. Some banks charge up to $35 per overdraft, which can quickly spiral into financial debt if you’re not careful.

What Are You Waiting For?

Money can be confusing, but you don’t have to figure it all out alone. Start small, build good habits, and focus on financial stability rather than keeping up with what everyone else is doing.

Pay your credit card balance in full every month.

Save at least twenty percent of your income. Build your credit score early, and be mindful of where you bank. The financial choices you make now will shape your future, and the more you learn now, the better off you’ll be.

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