Life is simple when you’re young.

You paid for your car in cash, and your house is a rental. The last thing on your mind is your credit score. But taking action now to learn about credit can drastically improve your life; it’s especially important because building your credit score early on can make life a lot easier when you start to make life’s big purchases.

Need to buy a car? A home? A good credit score can save you thousands of dollars.

Your chances of securing that dream job can also depend on your credit score. Employers often check your credit score to determine how responsible you are. Even applying for a smaller, personal loan will depend on your credit score. By the time you are 25, mortgages and budgets are a part of everyday life.

Building credit while you’re young doesn’t have to be a frightening experience. Properly managing finances is an empowering journey that will develop good financial habits as you get older. There are several approaches to building credit, but signing up for a credit card is one of the most efficient ways to build credit. Opening a line of credit will teach self-control, money management, and build your credit in the process.

Building credit is a life-long pursuit that should be started young. Growing your credit knowledge and making smart financial choices creates an easier path to adulthood. Check out this infographic to learn 5 easy steps for building credit.

How To Build Credit (Even If You’re Young & Broke)