"Instant gratification is tempting, but making efforts to teach young adults how to adopt sound fiscal practices will set them up for a lifetime of financial solvency and independence," writes AICPA's Lauren Sternberg. "And, with the right financial savvy, young consumers could presumably afford to spend a little extra when it's time to have a good time."
Five Tips for Young People:
Save, Save, Save!
If you don't have direct deposit, you can commit to put 10 percent of each paycheck into a savings account. You can't miss what you never saw in the first place.
Learn to Budget
If you don't know how much money you have coming in and how much you have going out every month, it is difficult to plan. Assess how much you make each month.
While large purchases and expenses—a home or a car, or starting a family—may seem a long way off, preparing for the future now, financially speaking, can put you in a better position to make those large financial decisions. So what can you do? Forego cable television for a Netflix subscription, bring your lunch to work most days, skip Starbucks and drink the coffee offered at work or make it at home, buy a few quality items of clothing and avoid cheap, ill-made pieces. Also consider taking a second job.
Sometimes waiting can make you realize the item isn't that important, or you might find a way to make this purchase fit into your budget. Another way to avoid debt is to learn the difference between your wants and needs.
Ask for Help
If you provide young people with sound guidance on fiscal responsibility early in life, you are setting them up for a lifetime of financial stability and good decision making.
Credit: Accounting Today