7 Important Financial Tips you can Practice Now that will Teach your Children how to Manage their Money Properly
Personal finance is an important subject but the subject isn’t required in high school by most states. Young adults graduate high school and go out into the world with little knowledge on how to care for and protect their finances, as a young adult you must take the time to learn how to manage your money properly. Instead of learning from your own mistakes learn from the mistakes of others and read this article on 7 important financial tips for young adults.
Importance of Education
There may be things you will want to do that don’t require a college degree but you should get one anyway. This is an investment but one that will pay off. If money is an issue then consider going to a community college first then transfer to a university after a couple of years. If you wait till you have a family, a home and all the other responsibilities adults accumulate, getting your degree will be more difficult. Why is a degree so important? With a college degree, you have the potential to make a lot more money.
Importance of Maintaining Health
Take the time and apply for health insurance now. Do not wait until something drastic happens like a broken leg, illness or surgery. If you think that paying for health insurance premiums is a pain, you don’t want to know what it will be like to take care of health-related issues without health insurance. Emergency rooms visits can result in you having to pay thousands of dollars. Make sure that you are doing everything you can to keep yourself healthy. Eat healthy, exercise, stay on any necessary medications. Take preventative care so that you don’t end up having to pay co-pays and doctors.
Secrets of Cash Advances
A cash advance can help out a lot but before performing any kind of cash advance you must know what they are, how they work and the fees that are associated with them. A cash advance has no grace period which means you will incur interest charges on in your advance from the day of the transaction right up until you pay it off. A cash advance with a credit card is likely to resort to high-interest fees on top of the already costly cash advance fees.
Budgeting is key to managing your money and should be done often. It is important to review your budget and make the necessary changes at the end of the year to prepare for the first of the year. A budget is necessary because it helps you to stop any unnecessary spending and save up for your goals and emergencies. You will be more financially flexible if you learn how to budget.
Prepare for the Unexpected
One-day down the line you may lose a job. Maybe you will have an unexpected pregnancy or a repair will have to be done on your home are a car. The best way to prepare for this it to takes a percentage of your income and deposit directly into your savings account every paycheck. While you’re at it make sure you are investing 401(k) plan or IRA. However, a 401(k) should not be used for emergencies as it will cost you.
Be Aware of your Partner’s Financial History
As a couple, you will likely be sharing assets, taxes, and debts. Be aware of your partner’s financial history and any spending or debt issues they have before considering joint accounts. If their name is on your account it means they can open it and close it without your permission. Are they the type of person to empty your account in the event of a divorce?
Make Good Financial Choices
Be financially literate. Take the time to correct poor money habits while you are young because the older you get the more difficult it will be. Do you pay in cash, if so make sure you are saving your coins in a jar at home? If you continue to put that change into an investment account the dollars will start building up and you will see yourself saving more money. Make sure you do your research and pick the right bank to hold onto your money. Look for a bank that has no minimum fee or monthly fee. You will also want free ATM access and no limits to your number of transactions.