Why Younger Adults Fail At Money Management
Some of you reading this will be the younger adult, some of you reading this might have a younger adult in your life that you want to try and help. But the truth is, no matter how old you are, we’re pretty bad at managing our money. Until you get to that stage in your life where you’re truly settled down, you’ve spent all you need to spend in terms of buying a house and having children, you’ll be out of control with the way that you spend your money. As soon as buying a house comes into play and having to manage bills and a social life, everything just seems to go to pot. But when it comes to young adults in particular, they’re terrible at managing money. It’s just the world that we live in at the minute that’s geared towards spending money. To live a good life and to have a good time, you have to reach into your pocket, and that’s what so many young adults do. But there are a few common mistakes that they’re making that make managing their money so much harder that we want to explore. Keep on reading to find out more.
Student Loans & Debt
Student loans and debt are two separate things. Student loans are a type of debt that aren’t actually that bad. When you look at the amount that students have to pay back, and only when they’re earning over twenty five thousand a year, you’ll see that there’s actually nothing to complain about. The problem is created when students are actually in uni, and they’re being given all of that money to spend. It’s often wasted on food, nights out, new clothes, and anything but living. So then the pot of money runs out a little too early, and students have to turn to other avenues to get some quick money for a night out at the end of the week. So some turn to loan companies who charge and absolute fortune in interest due to their credit score. What they should have been doing, is looking at secured loan rates to make sure they got the best one, and only borrowing in emergencies. Because students are being passed money to them so often, they forget the troubles that debt can cause, and often don’t even see it as real debt!
Rushing Into Big Financial Decisions
Another common mistake that we all make. When it comes to big financial decisions, you’re either going to be someone who rushes into them without thinking, or you’ll take so long to decide that you just can’t decide. We’re thinking about financial decisions such as a new car, which so many young adults want right now. Due to finance deals, it has never been easier for people to jump into a brand new car. But the dealers sweet talk you into a great deal, and it’s hard to think about the long term when you just want this so bad! So before rushing into any financial decisions, plan for the future. Plan for times of the year when you might need more money, or check how much the insurance is going to cost. That’s another big mistake young people make. They get a nice flashy car, but forget to check how much the insurance is going to be, only time find that it’s well over a thousand a year!
Buying Flashy Things To Look Good
Buying flashy things is what everyone wants to do. And young people make decisions that mean buying flashy things comes before everything else. So many young people now just want to buy designer things that help to make them look cooler and more attractive. It’s thanks to celebrities and social media influencers who are always flashing their nice things to people who want them just as much, but don’t have the same bank account. So where possible, if you are a young adult or whether you’ve got one in your life, try and save for the things that you want, and don’t buy anything out of your price range. It’s going to benefit you far more to have a bank account with savings in and normal clothes, than a bank account with nothing in, but a nice bag on your arm.
Failing To Get A Good Job
Another big problem that so many young people face. Failing to get a good job is common because there just aren’t that many jobs out there at the minute. Unless you go into education and get a degree, which just doesn’t appeal to some young people, you won’t be able to get as good of a job as if you did.
