It’s no secret to my faithful followers that I have a senior in high school. Now could not be a better time for me to gain financial knowledge, develop investing skills, and understand credit education. I’m anxious to learn and share that information and the practices I’ve implemented to improve my financial situation with not only my audience but my children as well. Especially my teenager getting ready to soon transition into young adulthood. Although, I have a wealth of information to share, below are the greatest 5 financial tips for young adults!
5 Greatest Financial Tips for Young Adults
1. Use Credit Wisely
When I started college in 2001 and even still now, freshman are bombarded with credit card opportunities. It was those opportunities that introduced me to credit card debt myself. I’ve been educating my high school senior on good credit practices. This includes encouraging her to avoid credit (as best practice) or to only charge what she can afford to pay back at the next bill cycle.
2. Avoid Student Loan Debt
As my high school senior approaches college, and even before, I’ve encouraged her to avoid college loan debt as much as possible. I’ve encouraged to take advantage of the early college option which would allow her to have completed all her college prerequisites by high school graduation. Taking college courses is another option available to juniors and seniors at her school. Finally, picking a major and determining if she can reach the same goals with an associates degree as opposed to a bachelors.
My daughter has been working for about 6 plus months now, after quitting her first job. Originally, we encouraged her to save something from her paycheck and she would, like $5.00. Afterwards we challenged her to save $500 by Christmas, which she has and wants to continue. She decided that she would like to save as much as possible so she will not be restricted by money (or the lack thereof) in college.
4. Minimize Expenses
Approaching college, I’ve taught my daughter how to shop with coupons, plan as much as possible, and determine needs vs wants. These are all imperative in minimizing expenses. Beyond college, we’ve discussed moving back home as opposed to renting, and avoiding purchasing a new car with a new job during or after college.
5. Be Patient
If you are wondering what patience has to do with finances, I’ll explain. In my debt story, most of my debt (aside from student loans) derived from wants over needs, and satisfying those needs immediately with credit. Emphasizing the importance of patience as a life virtue, will hopefully prevent my daughter from those impulse purchases and additional costly (and unnecessary) credit transactions.
Honestly, all of these financial tips could be learned and implemented at any point in life. Hell, I’m just learning them within the last 16 months or so. As a parent, we can appreciate our mistakes so that our children can benefit from the lesson!
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What financial tips are you teaching your children? What financial tips would you have liked to have learned earlier?