The Best 8 Tips To Teach Youngsters About Finances

There was a time that high school prepared students for the real world. Instead of focusing on philosophy and politics, schools taught things like how to balance a checkbook and how to manage a household. Unfortunately, very few educational institutions teach youngsters about the hard reality of life: that money makes the world go round. Even more, they fail to teach kids about how to manage their money.

If you are just graduating and hitting the real world, the cost of living can be shocking. Suddenly, all that money you thought you had is going to student loans, rent, and groceries. If you want not only to survive your financial future but to build wealth, these are the eight best tips from mpi brokers in Winnipeg, for your financial freedom.

1. Learn how to control your monetary decisions

Americans have become accustomed to instant gratification, and that includes purchasing decisions. If you want to be financially secure for the long term, then you have to learn how to control yourself financially. That means learning the difference between a “want” and a “need” and taking care of the needs first. It is much easier to give into impulses than to put money away for a rainy day. But learning fiscal self-control will make life a whole lot less complicated.

2. Control your future

It can seem a lot easier to allow someone else to control your assets and manage your money for the future, but it isn’t a good idea. Learning to manage your wealth and to make sound financial investments on your own is the best way to build wealth. Don’t turn your financial future over to someone who isn’t as concerned with your money as you are. With a plethora of information available, do the research to make sound investments yourself instead of paying someone else to do it and relying on them to care as much as you do.

3. Track the money train

If you are like most people, you run your debit card and cross your fingers that it will be approved. Not tracking where money is going can have you throwing good money after bad. Always make sure to balance your account and look over all transactions, reconciling all accounts at the end of the month. It isn’t just a matter of budgeting but also making sure that there aren’t any charges you don’t recognize.

4. Save for an emergency

Always make sure to have a buffer in your account just in case. No one ever expects an emergency to hit, hence the definition of “emergency.” That is why you should always have an extra savings account in case things go wrong, so you don’t end up getting behind and needing to use credit or credit cards.

5. Start saving for your retirement now

Sure, 70 seems like a lifetime away, but it comes sooner than you think. The more you put away now, the more your money will grow. Putting small amounts away now can prevent you from having to take huge chunks out of your paycheck later. Or even better, you will have huge amounts to put away, because you have the savings to back it up later in life because you started early.

6. Pay your taxes incrementally

Taxes are a part of life, so they must be planned for. Many people make the mistake of not figuring their tax bills into their monthly budget and then when they are due, they don’t have the resources put aside to pay for them. Instead of making taxes an afterthought, make them part of your monthly expenses and put the money in a separate account. Not only will taxes no longer be a hardship, but the money to pay for them will be earning interest all year long.

7. Health insurance is a must

If you think you are too healthy to need health insurance, that could lead you to financial ruin. You never know what will happen in the future, especially when it comes to your health. One health emergency can have you paying for the rest of your life. Health insurance may seem unnecessary, but it is one of the most necessary expenses in your adult life.

8. Protect what you build

Along with protecting yourself for emergencies and any health problems, you should have a general plan to protect all your wealth. That means having renters insurance, always choosing FDIC-insured banks and never putting too much risk on your investments. Maximizing wealth is the goal, but so is minimizing risk in any way possible.

Personal finance is a tricky part of life, but it’s one that not many think of. Instead of thinking about money as a month-to-month thing, make sure to do the above steps so that you aren’t just in the black every month, but you also have a goal to be financially sound for the future.

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