Life as a student looks very different this fall — as does the first day on the job for recent graduates. One way to help prepare young adults for whatever lies ahead is by teaching them basic financial skills during these transitional years.
As an aunt myself, I’m seeing firsthand the difficulties of planning for such an uncertain future. With summer job hours cut, my niece and nephew’s college savings plans have been impacted. And while I don’t know what the next few months will hold, I have been using this time with them to share key money advice that I learned at a young age.
Whether your children are preparing to go back to school or are staying home longer than anticipated, take advantage of this time to help them develop sound financial habits and prepare for the uncertainties ahead.
Here are a few tips that all young adults should know:
Track your spending and create a plan.
Getting in the habit of tracking expenses will help you identify excess spending and find areas to save. Put together a budget that tracks your expenses and update it regularly as your spending habits shift. As we’ve seen this year, financial situations can change rapidly, so the spending plan should reflect any changes to your lifestyle.
Start saving and create an emergency fund.
An emergency fund can provide peace of mind and act as a buffer for unexpected expenses. One of