NYU Student Wants to Change How Young People Manage Money

At 21 years old, NYU undergrad Scott Gamm is not your typical co-ed. Since the ripe age of 17, Gamm has been an avid student of all things finance.
He launched a blog, HelpSaveMyDollars.com, soon after the recession took hold as a way to help people his age grow into conscious, responsible spenders and savers.
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Gamm released his debut personal finance book, "More Money, Please: The Financial Secrets You Never Learned in School," last week. We asked him to share a few tips that every 20-something should learn to master their finances early:
The only way you should be using a credit card is by paying off the entire balance every month –– no matter what your minimum balance says. By paying the minimum payment, you'll wind up leaving a balance on the card and your interest rate will kick in. Minimum payments are calculated to keep you in debt. Ignore the minimum and pay the entire balance, or at least as much of it as you can.
If your employer contributes to your 401(k) (a retirement account that lets you automatically contribute a portion of each paycheck), then you should contribute, too – up to the employer's match. If you don't, you're basically throwing away free money. If they don't contribute anything, you might be better off going a different route.
The fees are exorbitant (employers hire large asset managers to take care of the employee's 401(k) accounts, and that isn't free). In fact, a survey last year from Demos showed that on average, a couple could spend $155,000 in 401(k) fees over a lifetime. Instead, take ten minutes and open up a Roth IRA online from a discount brokerage firm. This is an account where you contribute money that you've already paid taxes on and your money will grow tax-free. Who knows where tax rates are headed (probably up), so get the taxes over with now.
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