Bookmark & Share:     
218-336-1800 | www.mpecu.com March 2019
 
Home

Savings
Checking
Mortgages
Auto Loan
Online Auto Research
Online Banking
Contact Us
Facebook


February 2019
January 2019
December 2018

[MORE]

Subscribe to our Newsletter
Tell A Friend
Financial Skills for Young Adults
Financial skills young adults need to acquire

The real world is expensive, and if young adults lack financial aptitude, they will struggle not only fiscally, but emotionally as well. That’s why you need to acquire financial skills as you make your way through college, navigate your first job and learn to save for the years to come.

College-bound

College is often the first time you will experience a real sense of freedom. Gone are the days of a traditional school schedule with parents and teachers standing over your shoulder to make sure you study, eat and complete your assignments. College may also be the first time you are faced with managing your own money to cover bills, school expenses and inevitable loan payments. To help keep you from failing Personal Finance 101, Shelley Elmblad, writing for The Balance, recommends establishing a budget. Record income from sources such as part-time job, student loans, money from parents, grants, savings accounts and scholarships. Then record expenses: things such as books, tuition, rent, clothes, entertainment, college fees, supplies, personal care items and transportation costs. By tracking the first two months of spending, you will earn an accurate baseline of necessary and unnecessary spending and where there’s room in the budget for saving.

On the job

The thought of saving for retirement after securing the first job out of college may seem ludicrous. After all, you still need to pay off college loans, not to mention rent, car payments and insurance fees. However, saving for the future as soon as possible and investing in employer-matching retirement programs with the max amount possible are smart financial moves, according to The Balance writer Miriam Caldwell.

Remember the budget you used in college? Now is the time to update if for the real world. Tracking your income, expenses and spending is the only way to gain control of your finances and create a financial nest egg, notes Caldwell. As you progress in your career, your financial health should become more robust. Be sure to consistently evaluate and re-evaluate your budget, plans for the future and investment options.

Credit cards are convenient, and sometimes the only resource you have to get through stressful financial times. But, they come at a high price. Sinking into credit card debt happens quickly and before you know it, you’re over your head in fees and balances you can’t clear.

To help you stay afloat, Caldwell suggests foregoing any dependence on plastic. “Other than buying a car or buying a home, you should try to pay cash for everything else that you need,” she writes. If you’re already saddled with debt, she recommends tackling it with a thoughtful plan so you can be debt-free as soon as possible.

In case of emergency

Life will throw you expensive curveballs, and without an emergency fund, your financial health will take on serious damage. According to Investopedia writer Amy Fontinelle, any amount you can save each month in a money market account, certificate of deposit or online savings account will do wonders in establishing your financial safety net. Be sure the account you choose earns high-interest rates, too.

By adopting smart money habits, like budgeting, saving for retirement and building an emergency fund as a young adult, you’ll create a lucrative and secure future.



[PRINTER FRIENDLY VERSION]
Published by Minnesota Power Employees Credit Union
Includes copyrighted material of IMakeNews, Inc. and its suppliers.
Disclaimer - All content contained in this newsletter is for informational purposes only and should not be relied upon to make any financial, accounting, tax, legal or other related decisions. Each person must consider his or her objectives, risk tolerances and level of comfort when making financial decisions and should consult a competent professional advisor prior to making any such decisions. Any opinions expressed through the content in this newsletter are the opinions of the particular author only.  


Powered by IMN™