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Nine Basic Financial Skills No Young Adult Should Leave Home Without

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Writing is my passion. I have an undying thirst and quest in the field of writing. Some eat, drink or use drugs when stressed; I write.

nine-essential-financial-skill-no-young-adult-should-leave-home-without

In life, the journey from adolescence to adulthood can be a very challenging one. It is when development can vary from child to child at that stage in which a child develops secondary sex characteristics. Adolescence is the period of development that begins at puberty and ends at developing into adulthood.

Entering adulthood means being aware of the transitions and thinking about the future. Mainly, if you wish to be guaranteed a bright future, and every young adult must be the key to their success.

Every young adult should think about life after high school, so they know what they want out of their future and take a moment to plan to get there. Planning is not just setting goals, but it allows teens to take control of their life’s direction as they are creating realistic strategies to achieve them.

As we all know, parents can’t give their children every skill and impart all of their wisdom and life experience, even though teaching them the essential skills might prevent an array of mistakes that often come in life.

As every fresh adult prepares to leave the nest, there are core competencies that parents want to make sure they know before striking out on their own.

nine-essential-financial-skill-no-young-adult-should-leave-home-without

Different elements work, hand in hand, to create a bright future. Happiness also holds a massive leap between where you are today and where your future will carry you.

Although, some might believe that happiness is something that comes naturally. It's something that everyone needs to work on enjoying.

To have a promising future, every young adult requires a sense of direction to reach their goals in life. Life is a little like driving a car. You need to know the routes of where you are going, or you will end up going around in circles.

Traveling in circles is what your life will be like if there is no direction. It’s like drifting through the rut, and you do not understand where you are going or what you want for your future.

Visualizing your future is what it will take you from point A to point B. Imagining what you want is part of a favorable destiny in life.

Vision is something that assists in creating a future. Remember to take these challenges seriously and make the goals that are possible.

Reflect what you would like, live it. Visualization helps you to have a clear route to your mind that enables you to establish a clear direction of where you’re traveling. So fuel up your brain and fire up your heart. And ride on.

nine-essential-financial-skill-no-young-adult-should-leave-home-without

The question, ‘When should young adults plan for the future?’– it should be now, but because it attunes most humans to focus on the ‘right now’ situation that they cannot concentrate on the present circumstances, and that can threaten a future.

For almost everyone, planning should begin with having a handle on financial matters. It is a wise idea to begin by searching for budgeting techniques and reliable principles for managing money and assets.

A considerable sum of first-year college students was surveyed about their past financial education and current monetary behaviors.

The outcomes of the study were utterly troubling. The research showed over 40 percent of the young adult was so unprepared to have a handle on their assets and said they didn’t feel prepared to manage their finances.

Also, 25 percent confessed they didn’t learn how to manage their checking account. They continued to use their checking, even when their bank accounts have almost exceeded its limit, and another 12 percent admits to never checked their bank accounts because they were terrified of what they’d see.

nine-essential-financial-skill-no-young-adult-should-leave-home-without

Although sometimes young adult feels a lot of pressure, leaving childhood and transitions to adulthood, once they graduate high school and start that next stage, they need to begin managing their own financial affairs immediately.

With that in mind, let’s touch bases on the things young adults need to know to be able to take on responsibility once they leave home. Below are nine necessary financial skills every young adult should be aware to live a comfortable life.

1. He or she will need to know how to separate wants from need. This will be one of the harshest reality checks for a young adult to accomplish so they can become “independent.”

2. A young adult will need to know their total amount of asset and what type of checking accounts they have, how much goes into the checking account, as well as keep a good record how much money comes out.

3. A young adult will need to know how to balance a checkbook. If he or she writes checks, it's necessary to keep a record of every check written and balance the checkbook on a regular.

nine-essential-financial-skill-no-young-adult-should-leave-home-without

4. It is essential for the young adult to know how to read a bank statement. Each month when the report is issued it needs to be checked for errors as well as good to make sure they can understand the information they’re reviewing.

5. Start a plan by saving for an emergency. Every young adult must know how to prioritize their needs. By saving money when an emergency occurs, they understand the importance of having money to fall back on.

6. Necessary Money Management Skills. A young adult must know how to set a realistic budget and maintain it to live within their means. It may seem increasingly complicated to a young adult who is trying to establish a budget. It might even tend to come across hard. However, a budget is just your income, and it's essential to know how to use it wisely to facilitate financial spending decisions.

nine-essential-financial-skill-no-young-adult-should-leave-home-without

7. A young adult must know how to use a debit or credit card. Although there is a significant difference in the two, it still necessary to understand how to use them both. Especially since lenders are always looking for ways to take advantage of anybody who doesn’t have an understanding or much experience using them.

8. It is crucial for a young adult to know how to build a positive credit history. You will not be young always and will want a solid foundation to stand on so; it’s good to understand how to build the credit responsibly, so, when you reach a more mature age your credit accounts are in good standing.

9. Last, always ask for help. As a child, it okay to close your eyes and not take life seriously. But growing into an adult problem will not solve themselves, they will need to be fixed. Know that when you turn away from your problems in the adult world, things only get worse. It’s okay to ask older and wiser people for help that how we grow and learn.

Parents can’t teach a child everything. Nothing or nobody can prepare them for every possibility; they learn from mistake and life’s lesson. However, they can be ready for some of life’s challenges if we give them the necessary tools and guidance. Also, they will need to plan ahead and make intelligent choices. That will minimize the damage, help them to grow, so they have a better chance in life when they make good decisions.

Nine Basic Financial Skills No Young Adult Should Leave Home Without

Colin Dodds - Debit Credit Theory (Accounting Rap Song)

Can you ace this financial literacy quiz?

For each question, choose the best answer for you.

  1. How do you set a savings goal?
    • Set a dollar goal and a deadline date for saving that much.
    • Save every spare dollar -- plus all bonuses and windfalls.
    • . Devote at least 25 percent of your net earnings to your goal.
    • Crowdfunding
  2. How do you spend big bucks with a big purchase?
    • Comparison shop, then hit the store with the best price.
    • Wait for the sale.
    • D. Haggle.
  3. Which account should you borrow from?
    • IRA
    • 401(k)
    • Roth IRA.
    • Roth 401(k)

Scoring

Use the scoring guide below to add up your total points based on your answers.

  1. How do you set a savings goal?
    • Set a dollar goal and a deadline date for saving that much.: +0 points
    • Save every spare dollar -- plus all bonuses and windfalls.: +0 points
    • . Devote at least 25 percent of your net earnings to your goal.: +0 points
    • Crowdfunding: +0 points
  2. How do you spend big bucks with a big purchase?
    • Comparison shop, then hit the store with the best price.: +0 points
    • Wait for the sale.: +0 points
    • D. Haggle.: +0 points
  3. Which account should you borrow from?
    • IRA: +0 points
    • 401(k): +0 points
    • Roth IRA.: +0 points
    • Roth 401(k): +0 points

Interpreting Your Score

A score of 0 means: ?

Financial Literacy - 9 things a college student should know

© 2017 Pam Morris