When your child reaches young adulthood, you hope they will start to make healthy finance choices. They get a job, and will need to have a savings education even if they seem to make better choices. The world is filled with material gain influences, new cars, the latest fashion fads, etc. that just may get your young adult off track. Today, we look at educating your young adult in finance.
Your young adult's development and practice of financial skills, research and decision-making strategies are important for achieving and maintaining financial well-being in adulthood. The experts suggest that you can help educate your young adult by:
- Breaking financial tasks and problems into small, manageable steps.
- Model financial skills and decision-making strategies.
- Provide opportunities for your kids to practice their financial skills and decision-making strategies providing less direction or guidance as their understanding and abilities increase.
- Help them recognize when, how, and where to get the financial information they need to make financial decisions and act on them.
Asking your young adult about their future aspirations is especially helpful in guiding you to help them in the financial planning mode. As they say, 'talk to your child', ask them to realistically take a look into their future; what kind of car will they drive, where do they want to live, what career path do they want to pursue. Defining goals sets a tone of seriousness; they will no long have you to finance their needs, and will likely have a spouse and children to support as well. Help them to set a clear plan for savings, growing equity and budgeting.
Feel like you might need a little help with all this? We at The Shields Team have a wealth of reputable and trusted lending partners who would be glad to talk with you and help guide your conversations with your young adult. Simply give us a call at our office, (423) 433-6517, or stop by our office inside Keller Williams Realty, 1033 Hamilton Place in Johnson City. Let us help you prepare your young adult for a great future!