Zach's Challenge Blog: Post-Financial Crisis of the Happily Ever After

Editor's note: We challenged all of our finalists to write a blog post. "From your own experience, what are the top 3 financial issues facing your generation?"

Hear ye! Hear ye, Generation Y! Gather round to hear the tales of princes and princesses, and odysseys of great adventurers. Whether young adult or not you're never to old to learn new morals. Listen to three untold tales of financial issues that can impact you: 

Beast and Belle wanted to get a new castle after the Beast became the Hunk, so they went to the local credit union to apply for a mortgage. Beast's credit check failed to report good credit, and the pair were refused a loan. The Beast had no credit score; he wanted to hang out in his castle for a couple years instead... loathing and playing XBOX. He didn't make any moves for his financial future. 

The moral of the story is make sure you establish a credit score. Credit is important if you ever want to buy a house, car, boat, airplane etc. Establishing credit is not an easy task; you have to start small. Some of the easiest things to do are get a retail or gas credit card since they have low limits --but watch out for high interest rates! You can also try putting your rent, utilities, cell phone, or other monthly bills, into your name. WARNING: this often requires a cosigner or huge down payment so save up --oh and be nice to your parents.  

After becoming mortal, Hercules and Meg moved in together and Hercules, as a hero, worked for the government slaying monsters. Hercules spends all of his money on steroids, work out equipment, protein shakes, and weapons without saving for the unexpected expenses. After slaying monsters for a couple of years, there are no more monsters to slay. No monsters equals no job. Herc is out of a job, single, and unable to pay his bills with no money in his savings. 

The moral of the story is it's extremely important to save up money because you never know what will happen, and it's better to be safe than sorry. If you have money put away and an emergency comes up, it's great to have money ready for the occasion rather than putting yourself in a bind because you spent all of your money. It's recommended to have 6 months of income saved in case you lose your job --and in our current economic situation it makes sense. Life is uncertain so it is important to expect the unexpected and be prepared financially. Live within your means and budget to have the extra savings; try putting money aside every pay check and making sure you can provide for yourself on your single income. If Hunk-ules can get dumped... so can you.  

Cinderella and Prince Charming lived happily ever after, right? This was true until Cinderella got the Princess Master Platinum Deluxe credit card, with no limit, and she went on a huge shopping spree.  Can you say all the diamond encrusted, gold toed, silver lined, shatter resistant glass slippers a princess can ask for!? She bought everything in sight. Prince Charming could hardly afford to pay for Cinderella's spending habits, his payments barely covered the interest! Cinderella thought that the minimum payments were a great idea... that way Prince Charming would still have money for dates.  Turns out he had money for dates with... SNOW WHITE! Cinderella had no choice but to move back in with the evil stepmother since her credit was eternally ruined.  

The moral of the story is use your credit card responsibly.  Credit cards can make, or break, your financial standing. Credit cards may look like an awesome idea, because buy now pay later is an awesome idea! In reality, it really isn't always the best idea. You do have to pay it back --sometimes with interest!  If you get a credit card make sure you read the fine print. Paying the minimum payment every month is a recipe for disaster! You'll end up trapped in the loop of just paying interest. Even if your credit card company gives you a $20,000 limit, chances are you don't have $20,000 to pay them back. Live within your means and pay back the creditors ASAP. If you do decide to get a credit card make sure you know the positive and negative effects it can have on your credit score.  

Zach