Is your young adult money ready?
Is your young adult money ready? In other words, if you have a young adult in your life who just graduated high school or is attending college, are they ready to be self-sufficient in their money lives?
A few years back, my twenty-something niece moved into her first apartment. She was really excited about having her own space. But after struggling to make ends meet, she had to move back home after only five months. Of course, her wonderful parents welcomed her back home and helped her pay off her broken lease. But she was devastated.
She told me that she made a trial budget before moving. But that budget was too basic. She failed to include many monthly expenses. Because she didn’t have enough money knowledge and skills she was unable to be financially independent of her parents.
Young adults do not have basic money knowledge
George Washington University recently conducted a study of the personal finances of over 5500 young adults ages 23 to 35. The study revealed that only 24% of young people demonstrated a basic knowledge of personal money matters. That means that three out of four young adults are not ready to make everyday money decisions.
How does this impact us?
As parents, how does that impact us? Young people without a basic knowledge of personal money matters are more likely to live with their parents for an extended period. Many are financially dependent on their parents for years to help them out with living expenses like rent, utilities, groceries, car insurance, cell phones and more.
Unfortunately, this lack of money knowledge and skills delays our young adults’ independence and their sense of accomplishment. Also, it erodes their self-esteem. As a parent, this breaks my heart.
How to help your young adult become money ready
So, what can you do to help your young adult get ready to handle their own money matters? Research the money topics that your son or daughter needs to know about, such as budgeting, credit cards, credit scores, debt, savings, and identity theft, just to name a few. Search the internet for articles on money management and share them with your son or daughter. Have them read books and magazines that deal with money issues. Or encourage them to take a course on money management.
If you don’t have time to do all that research yourself, consider the Hire Your Money course. It is a cutting edge, cloud-based interactive course that empowers young people to take command of their money lives. Your young adult will be able to access the course on their favorite internet-enabled device. No reading required. There are presentations about must-know money topics, videos and downloadable money tools.
A lifetime of benefits
Regardless of the method you choose, helping your adult child become financially self-sufficient is a great gift that will provide them with a lifetime of benefits.