Young adults aren’t often taught financial planning and economics in school. From fifteen years old, a young adult can find a part-time job and work. Then, what do they do with their money? Often, with electronic transactions and direct deposit, teens aren’t aware of how checks used to be handwritten and how a check book kept track of spending. Credit cards complicate matters more.
Personal finances often become a major problem once debt has been accrued and a young person already has five credit cards. At that point, it is very challenging to recover, but it is possible. Here are some tips to help young adults with personal finance now!
Write down everything you buy or spend in your own handwriting. Use an app or my personal favorite, get a large monthly calendar, and jot down what you purchased and what you earned each evening. You may realize that you are spending more than you are earning when you look at it like this. You can also look at monthly re-occurring expenses such as Shopify, Pandora, Internet/Cable, monthly subscriptions, and memberships. Ask yourself, “Do I really need 2,000 premium channels on tv, or can I settle for 50 channels that I actually watch for a lower monthly rate?”
Create an emergency fund. Once you have left your parent’s home, you may find unexpected expenses pop up. For instance, your cat played with your expensive earrings and you need to buy more. Your cute, new puppy chewed your laptop charger and you need to purchase a new one, and need it overnight shipped because a huge work project is due tomorrow. Set aside and save six months worth of “comfortable living” money.
Figure out your insurance options for your health and your car. This may mean making a few phone calls and spending some time looking at different plans. Take the time to do this now, when you are healthy and have the energy. If you qualify for state insurance, go for that option. However, don’t go without health insurance or a surprise injury may break the bank. When looking at car insurance, remember to drive safely. Moving violations and tickets not only cost a lot, but also increase your insurance costs.
I hope you enjoyed some quick tips for young adults who want more organized personal finances.
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This article was written by Katie Ziskind, Licensed Marriage Family Therapist, 500-hour Registered Yoga Therapist, is the owner and clinical director at Wisdom Within Counseling in Niantic, Connecticut. Finding a family therapist in Niantic has been very difficult until now. Katie also offers teletherapy and distance counseling. Katie Ziskind LMFT, RYT500 combines her highly effective specialties of art, yoga, music, and animal therapy alongside talk counseling. She is an expert with children, adolescents, teenagers, and the young adults. She offers therapy for teens in Niantic. Parenting sessions and couples therapy for parents challenged by their children, are also part of her practice. She is affirming and open to the LGBT community. She specializes in yoga therapy for athletic individuals who have a sports injury and have been through trauma. Contact her today by texting or calling.