Embarking into the world of finance can be daunting for the youth of today, especially if they are first time in the workforce and beginning to spread their wings. Knowing financial basics is essential for life, though the amount of personal (and professional) debt that people acquire within their lifetimes is substantial for the general population. This is largely due to lack of education of the financial world, in schools, colleges and at home. To get ahead in the game of money, it is important to start early and gain the knowledge that you will need throughout your entire life. Here we offer some guidance to help get young people on track in understanding how best to interact with finance.
Be Money Wise
If you have just landed your first ‘serious’ paying job, then it can be extremely tempting to grab that first paycheck and go on a spending spree. When you have little or no debts, and generally less responsibilities in rent and bills, then a disposable income can be extremely tempting to use. Be aware that the more you spend, the less you save, and the less you have for the future. Tip here: delay gratification, and ask yourself twice if you really need that 3rd pair of sneakers.
Yep, it may be DECADES away, but starting to put savings away for your retirement now is one of the best things you can do for yourself, and future family. Every little bit counts. With interest benefits, the sooner you begin a fund, the better off you’ll be in the long run.
Get educated on how taxes work, how to do a basic tax return, and file and organize your documents early on. Especially if you are in a job that requires relatively simple organizing when it comes to tax time. This allows you to get your foot in the door without the overwhelm when it gets to more complex career tax systems.
Get Clear On Spending Habits
Be budget savvy. There are great applications online and for smartphones to allow you to track and categorise your spending. This gives you great insight into how much you are really spending and saving.