Finances
and managing money are struggles that most people face. The Finra Investor
Education Foundation reports that 55 percent of Americans spend more than they earn or, at
best, break even. Parents should equip their kids with the financial
education they need to live financially responsible lives. To be fair, many of
them came into adulthood unprepared. Fiscal responsibility is a topic that
could fill numerous books. Here are a few pieces of financial advice your
parents should have given you:
You
can’t have it all right now Kids can't expect to
live in the manner to which they have grown accustomed under their parents' roofs.
By the time children come along and become aware they don't see the struggles,
sacrifices and delays that parents go through to reach a certain lifestyle.
Young adults need to understand that they don't need to buy everything they see
or want, according to the Long Beach Patch. Wait to purchase items, even ones
that may seem like a necessity, such as a sofa, a headboard for the bed or a
car. If you can't afford it and are getting along fine without it, you can wait
until you've saved enough money, even if it would be nice or convenient to have
it right now.
A
new car, or small house Speaking of not setting your
sights on living Mom and Dad's lifestyle—when you're starting out you may have
to resign yourself to not buying a new car every year or two. New cars look
great and can be a lot of fun, but new cars are expensive and can cost the same
amount of money as a small house. That doesn't mean you have to settle for a
junker, though. Visit the used car section on Kelley Blue Book to get an
idea of what's available. Once you have a type of car and a price in mind,
start putting money away each month to buy the affordable car of your dreams.
Don’t
keep balances on your credit card You may have read
somewhere that carrying a balance on your credit card will improve your credit
score, but your parents should have told you that information isn't true. Daily
Finance reports that the only thing keeping a balance on your credit card does is
cost you money through accumulated interest. It's OK to keep a
credit card for true emergencies, but don't reach for it every time you have an
impulse to buy something you can't afford. And when you do pay for something
with credit, pay off the balance with the first statement or as soon thereafter
as you can.
You
may have to work (temporarily) out of your field Yes,
you spent two or more years going to school to get your certificate or degree,
and you really know your stuff. If your parents didn't prepare you for the
possibility of a lack of openings in your field, they should have. Those who
don't graduate with a job offer on their plate shouldn't waste time sitting
around waiting for the headhunters to find them. The Art of Manliness advises
that you recognize having a terrific degree doesn't guarantee you won't have to
wait tables, man a cash register or dig ditches. No job is below you, and you
can do your best to wait the heck out of those tables at the local pizza joint.
At least you'll be earning an income to pay your living expenses. Meanwhile,
there's nothing to stop you from continuing to look for a job in your field.
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