San Diego may have a sizable population (1.37 million people), but it’s now also a young city, with 25% of residents 25 years old or younger. With a median age of only 34.9 years, there are a whole lot of Millennials just trying to make their way in the working world, as well as Gen Xers starting families.
It seems harder than ever to make it on our own these days, yet alone to keep up with the Instagram-famous lifestyle we really want (and deserve!). But the good news is that by being smart with your money and credit score now, you’ll be able to check off these financial goals and be ready to really live it up very soon!
Here are five ways San Diego Millennials can manage their money and credit scores to save money:
- Save for the future (or a rainy day)
These days, it’s crucial for anyone to establish a savings account in case of an emergency. Studies show that putting aside at least $500 – and ideally more like three months’ salary – helps protect you from unexpected circumstances like a job loss, medical problem, or the car breaking down. By having some money put aside for a rainy day, that will help you avoid putting these expenses on a credit card, getting a payday loan, or other methods that will actually hurt you financially – and drop credit scores for San Diego residents!
- Knock out those student loans
Most of us are aware that student loan debt is at crisis proportions across the U.S., with $1.4 trillion of outstanding educational loans right now…and growing rapidly by the day. San Diego students are certainly not exempt from the need to take out student loans, especially when you consider the high cost of living, housing, and tuition.
In fact, the average student loan debt per borrower at popular San Diego colleges and universities is:
UC San Diego: $21,0601
San Diego State University: $21,327
Cal State San Marcos: $24,304
University of San Diego: $31,264.
Point Loma Nazarene University: $34,653
Whoa, that’s a lot of debt, especially when you’re just graduating and trying to make your way in San Diego’s job scene.
And while the student loan default rate is slightly below the national average among Dan Diegans (at 12.7 percent), one way that young people can definitely help themselves is by improving their credit scores, which will afford them more options for lower-rate student loans, qualification for more programs, and overall savings in their budgets that can be applied to educational debt balances.
- Pay off credit cards and debt
While San Diego enjoys a thriving economy and healthy proportion of high-paying jobs, San Diego residents also find themselves burdened by high levels of credit cards and other debt. In fact, the good citizens of S.D. average $28,240 in household (non-mortgage) debt, including $8,665 in credit card balances. That ranks 35th highest in the entire U.S., but even more alarming is that San Diego Millennials hold an average of just under $3,000 in credit card balances and debt, which is the 4th highest (worst) in the entire nation!
Keeping a great credit score is an important way for San Diego residents, young and old, to keep their interest rates down, qualify for better loans and consolidation programs, and save money so that they can make extra payments and knock out their debt much quicker. If you’re a Millennial living in San Diego, repairing your credit score is a surefire way to save!
- Buy your own home
We understand: real estate is expensive in San Diego. For that reason, only 50 percent of San Diego adults are homeowners, and our 35.9 percent of monthly income budgeted to pay the mortgage or rent is one of the highest ratios in the country.
However, renting in San Diego is even more expensive! In fact, the median monthly rent in San Diego County is now $2,995, which is one of the top-25 priciest in the U.S. Even a simple, small apartment averages almost $2,200 in rent, and the cost to lease is rising about 7 percent every year!
So, while it’s not easy, homeownership should be one of your top goals if you’re a Millennial in San Diego. Learn about the home buying process, educate yourself about great loans (like FHA) that allow a small down payment, start saving, enlist the help of parents or relatives, and even think about going in on a purchase with others or buying a place and renting out rooms to your friends. It won’t be fun now and requires a lot of sacrifices, but you’ll thank me a hundred times over down the road!
The best way to ensure that you qualify for a great first-time buyers home loan with low rates is by fixing your credit score, so a great credit score is even more important in San Diego!
- Fixing your credit score in San Diego!
San Diego may be one of the best places in the world to live, work, play, go to college, or just visit, but San Diegans are also lagging far behind when it comes to their credit scores. Actually, you may be shocked to hear that San Diego residents an average Vantage Score of only 678 (on a range from 300 to 850, which is the lowest average credit score out of the 20 biggest cities in the entire U.S.! FICO scores maybe a little better among San Diegans (696 average), but that’s just no. 18 out of all cities in California.
Looking closer, it’s definitely a take of haves and have-nots in San Diego, with more than half (53.5 percent) of all residents with poor or very poor scores, and just 36.2 percent of San Diegans claiming excellent scores (750-850).
If YOU are a Millennial in San Diego and want to save money now but also enjoy a much brighter financial future, make sure that your credit scores make the grade!
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By the way, San Diego residents now have a great resource when it comes to repairing their credit and making sure their scores are top-shelf. Don’t suffer from credit score FOMO – just contact Blue Water Credit!
