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Seven basic financial skills no young adult should leave home without
Jesse Campbell
College sometimes feels like an empty space
between childhood and adulthood, but once a young man
or woman graduates from high school and starts their
next stage, they’re basically adults and they need to be
[5] able to manage their own financial affairs.
With that in mind, consider the following a checklist
of sorts. These are the things young adults need to know
before they leave home.
[10] 1. How to access their money
Before your son or daughter leaves home, make sure they
know what accounts they have, how to view those
accounts, how to deposit into those accounts, and how to
get money out of those accounts. It sounds simple, but
[15] don’t take it for granted. Thanks to online banking and
mobile apps, it’s easier than ever.
2. How to read a bank statement
Today’s high school graduates probably won’t look at too
[20] many paper bank statements in their life. Whether they’re
reading a monthly statement or checking an app daily,
however, it remains vitally important that they
understand what they’re looking at. Balance, interest
rates, due dates, transactions
– they should have the key
[25] terms down and be in the habit of monitoring them
monthly.
3. How to maintain a simple budget
Budgeting has a tendency to get increasingly complicated
[30] as you get older. In its most basic form, a budget is just a
plan for your income. Teach kids to think about how their
purchases impact one another. Most importantly, they
need to be able to see how their spending matches up with
their earning.
[35]
4. How to separate want from need
One of the sharpest reality checks you receive when you
become “independent” is the realization that your needs
are no longer being taken care of by someone else. In the
[40] transition into full-on adulthood, a lot of young adults put
themselves in a bad financial position because they
continue to put their wants before their needs.
5. How to read and understand credit card,
[45] debit card, and loan offers
Unfortunately, lenders will always look to exploit young
adults who don’t have much experience with money,
being crucial that your children learn how to read and
understand the terms and conditions of basic credit
[50] agreements.
6. How to save for an emergency
As difficult as it is to get kids to prioritize their needs over
their wants when it comes to managing their money, it’s
[55] even harder to get them to prioritize the needs they might
have in the future, if something really bad happens. So
make sure your children understand the importance of
saving money and know how to build their own little
emergency nest egg.
[60]
7. How to ask for help
When you’re young, some problems solve themselves.
Sometimes you really can close your eyes and someone
older will come along and fix whatever’s broken. It
[65] doesn’t work like that when you’re an adult, though.
When you stop being interested in problems in the adult
world, those problems only get worse and worse.
Adapted from: http://www.moneymanagement.org/blog/basic-financial-skillsno-young-adults-should-leave-home-without. Accessed on 3rd Aug, 2021.
Mark the correct alternative(s) according to the text.
01) It’s important to teach kids about the impact of what they buy.
02) Kids have to know if their spending is similar to their earning.
04) In the transition to the adulthood, all the young adults put themselves in a bad financial situation.
08) Young adults should be able to separate their necessities from their desires.
16) Young adults are always targeted by lenders due to their lack of experience.
