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Nine Basic Financial Skills No Young Adult Should Leave Home Without

Updated on June 8, 2017
Pam Morris profile image

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

In life, the journey from adolescence to adulthood can be a very challenging one. Entering adolescence is the time when an individual began to change and develop so life may seem unpredictable. However, we must be aware of our teen's transitions and think about the future. Especially, if you want to guarantee yourself a bright future; you are the key to your success and it best to know what you want out of that future and take the time to plan to get there. Planning is not just setting goals, but allows you to take control of your life's direction as you creating realistic strategies to achieve them.

As we all know, it is impossible for parents to give their children every skill and impart all of their wisdom and life experiences, even though teaching them the essential skills might prevent an array of mistakes that often come in life. Nevertheless, as every young adult prepares to leave the nest, there are core competencies parents want to make sure they know before striking out on their own.

For almost every young adult, maturity begins with learning how to have a handle on your financial matters. That is one way to guarantee a promising future as well as setting long-term financial goals. Teens growing into a young adult need to play an active role in planning their future when they enter high school. When they begin taking on the responsibility early in life as they get older, their role will come to be larger, and the parent tasks will become less.

Parents should train teenager to handle their own future, so they will know what is approaching ahead. Although Parent tasks are to help their child, children should gradually assume responsibility for their future, they are better prepared when they manage their own life. Some people believe that procrastination has nothing to do with their future. Nonetheless, to some degree, procrastination will dictate the level of future an individual attain.

There are different elements which work, hand in hand, to create the right future. Happiness also holds a huge 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 is something that everyone needs to work on to enjoy. To have a promising future, we as human beings need a sense of direction to reach our goals in life. Life is a little bit like driving a car. You need to know the directions of where you are going, or you will end up driving around in circles.

Driving around in circles is what your life will be like if there is not a particular road to your life and you have some idea of where you are going or what you want for your future. Visualizing your future is what will take you from point A to point B. Visualization what you want is a part of a favorable future in life. Visualize is something that assists with creating a future. Remember to take these challenges seriously and make the goals things which are possible. Visualize what it is that you would like, live it. Visualization helps you to have a clear route to your life

The question ‘When should we begin planning for the future?’– it should be right now, but because most humans are attuned to focus on the ‘right now’ situation they fail to concentrate on present circumstances, and that can be threatening to a future. For almost everyone, planning should begin with having a handle on financial matters. It is a wise idea to start by searching for budgeting techniques and solid principles for managing money and assets.

A large sum of first-year college students was surveyed about their past financial education and current monetary behaviors. The outcomes of the studied were utterly troubling. The research showed over 40 percent of the young adult were 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 know how to manage their checking account. They continued to use their checking, even when their bank accounts have almost exceeded it's limit, and another 12 percent admits to never checked their bank accounts because they were terrified of what they’d see there.

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 basic 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 account, as well as keep a good record how much money comes out of the account.

3. The young adult will need to know how to balance his or her checkbook. If he or she write checks, it necessary to keep a record of every check written and balance the checkbook on a regular.

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

5. 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 important to know how to use it wisely to facilitate financial spending decisions.

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 young adults who don’t have an understanding or much experience using them.

8. It is important 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 use 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 prepared for some of life’s challenges if we give them the necessary tools and guidance. Also, they will need to plan ahead and make smart choices. That will minimize the damage, help them to grow, so they have a better chance in life when their choices are smart.

Nine Basic Financial Skills No Young Adult Should Leave Home Without

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© 2017 Pam Morris

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