Many young people just finishing high school or college have a limited history handling money. Some may have had part-time jobs; some may have had an allowance from parents. As they start their adult lives, these young people need to demonstrate a history of financial independence and ability.
First step is opening checking and savings accounts, if they have not been opened earlier. Those accounts should be carefully managed, without overdrafts or other problems. Then comes a credit card, to be used judiciously. Payment activity on a credit card will be reported to the three main credit bureaus: Equifax, Experian and TransUnion. Best bet: choose a no-fee card that offers reward points. Pay credit card bills promptly!
A small loan that's paid off on time will add to a good credit history.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

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