Personal finance is a key issue for everyone entering the world of work. But not only for them, since this topic even transcends the university area. The explanation can be found in the following data.
A 2017 Injuv study reveals that 35% of young people report having a credit card. Of that percentage, 48% are between 25 and 29 years old. The alarming thing is that according to this same study, 74% of not know what a financial product is, 80% of not know what indebtedness is and 75% of not know what interest rates consist of. To get into the world of personal finance then we are going to review the main related products.
What financial products are there?
Below we will review 5 financial products that you must know very well to manage your finances in the best way.
1) Current account
A checking account is one that a bank opens in your name and gives you access to a variety of financial products such as credit cards, checkbooks, among others.
It allows you to deposit your salary or other income through deposits, as well as carry out different operations such as paying online, transferring money, paying credits, insurance, etc. The money in your checking account can be drawn through the debit card that the bank gives you when you open your account.
If you want to know everything about this financial product, go to the Current Account section of Compare. After you are informed you can quote and request the opening of the account that suits you best in our current account quote.
2) Credit card
Credit cards can be great allies in your finances, but they can also be a nasty enemy. That’s why it’s important to know all the terminologies of this key financial product to avoid negatively impacting your personal finances.
As we saw at the beginning, 35% of young people already have a credit card, but many of them do not even know the basic terms of this financial product such as: interest rate, minimum payment, commissions and monthly and annual maintenance costs.
To know all this you can review an article that we have prepared with everything you need to know about credit cards.
Remember that, as the Sernac campaign explains, it is always important to quote before choosing a financial product. On our Compare site you can compare between the different card offers in Chile and request it online.
3) Savings account
A savings account is one that offers you a financial institution to save your money. They are not only offered by banks but also by other types of financial entities such as cooperatives or clearinghouses.
There are different types of savings accounts such as the savings account for housing or to make time deposits. There is also the option of a normal savings account. It is always good to keep your money in savings accounts and not under your mattress or in a safe, since with annual adjustments the money devalues, instead, financial institutions apply interest to your money so that it continues to maintain the value of the current year .
In general, all these accounts are subject to adjustments and interest, but not all, so we recommend that you compare all the options available in the market in Compare.
4) Automotive insurance
When you buy your first car it is always important that you take into account all the costs that go hand in hand with this product. Benzine, patent, Circulation Permit and one of the most important: automobile insurance.
Automotive insurance is a group of coverages that are contracted to protect your car from the expenses caused by accidents or the partial or total theft of the vehicle.
In Compare you can quote your auto insurance at no cost by reviewing all the coverages and assistance offered by the main insurance companies in Chile.
5) Savings for your retirement
Another important point to consider within your personal finances is your long-term investments. Among them are the savings that you have to make for your retirement through the Pension Fund Administrators better known as AFP.
It is important that you inform yourself as best you can before joining a company. Among the things you should compare are the monthly commission charged by the AFP, as well as a good understanding of the different Funds ranging from the most risky (A) to the least risky (E).
In Compare you can also quote the entire AFP offer and understand in depth what this key financial product for your future consists of.