Most schools don’t teach young adults about personal finance and many individuals do not learn how to handle money at home. Once a young adult finishes high school and starts college or university or even working full-time, he has no money skills to draw upon. In order to help you out if you are a budding adult or to help you as a parent guide your young adult on the right financial road, here are some tips you can use to get started.
Stay in Control of Your Finances
You must always stay on top of your finances or else you will lose control of them. There are unscrupulous people in this world that will try to scam you out of your money and even financial planners that work on commissions may not always have your best interests at heart.
Stay in the loop about financial matters so that you can make your own decisions. When you have sound financial knowledge at your fingertips, you’ll be better able to stay in control of your finances and will be able to make the best decisions possible based on your own financial circumstances.
It’s All about Self-Control
Self-control is an important part of managing your money. If you can’t afford something right now, save up for it for the future. You don’t need to rely on credit since it can pull you down a rabbit hole that is hard to get out of.
The best way to impose self-control on yourself is to learn how to make a budget and then make sure that you stick to it. The only time a credit card should be used is if you are sure you will have the money available to pay it off in full as soon as the bill arrives.
Retirement Savings
If you ask senior citizens what they would have changed in their lives, the number one answer would be that they wished they had started saving for retirement sooner. You have the chance to make sure that you have a solid foundation for your retirement by starting to save for it early.
Even if you go to school right now and are living hand to mouth, try to put $5 or even $10 away per month in a separate fund for your retirement. This will set the ball rolling and will start a lifelong habit that you will appreciate once you reach your golden years.
Emergency Fund
A small amount of your money should also be put aside to build up an emergency fund. This should equal at least 2 months of living expenditures. You never know what surprises will hit in life and when you are prepared for them, it’s a lot easier to get through any rough financial times you may encounter.
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