Are Young People Learning the Financial Basics?

FinanceAs soon as a teen becomes a legal adult, he or she is personally responsible for their financial health and obligations. Some teens may still live at home with their parents and receive some financial support for a few additional months or years.

However, the individual may also be responsible for paying taxes, for paying all debts that he or she takes on and more. Many older adults have the benefit of life lessons to help them manage their finances, but these may have been difficult and expensive lessons to learn.

When young adults are able to learn these lessons from their school or a relative, they may be able to avoid the painful experiences of learning them through their own trial and error.

The Importance of an Emergency Fund

One of the hallmarks of financial health is an emergency fund. The money in an emergency fund could be used to help you avoid taking on unnecessary debt in the event of an unexpected situation.

For example, if you are sick for several weeks and are unable to work, you can use your emergency fund to pay your expenses. This can help you to avoid high interest title loans and other types of debt. Ultimately, an emergency fund can safeguard your finances. The more money that is available in your emergency fund, the greater the benefit can be.

If possible, fund your savings account substantially before you move out of your parents’ house.

The Need to Keep Debt Balances as Low as Possible

Another financial lesson that young adults need to learn relates to managing debt balances. When you are young, it is easy to think ahead about how you may have a much higher income level after you graduate from college.

You may think that you would have plenty of money to pay off credit card balances, student loans, auto loan and other debts at that time. However, when you borrow a substantial amount of money, your monthly debt payments can be burdensome. In some cases, these payments are so high that individuals are forced to live a much lower quality of life after graduation until the debts are paid off. Others may even be forced to file for bankruptcy and to deal with the long-term ramifications.

The Benefit of Living Beneath Your Means

Young adults should also learn more about how to live beneath their means and why it is important. The reality is that living beneath your means can help you to avoid falling heavily into debt. More than that, it can enable you to save and invest more money at a very early age. By doing so, you may take full advantage of the power of compounded interest, dividend reinvestments and more. Many people who dream of retiring early are only able to do so because they had the foresight to begin saving early in life.

While these financial lessons may seem fairly intuitive to older adults, these are common areas where young adults struggle. In fact, older adults may only understand the importance of these lessons through real-life experiences that have taught them the lessons the hard way. When young adults are educated in these and other areas, they can make savvy financial decisions that ultimately help them to enjoy great security in the years to come.

How to Resign Without Any Mess

Resign jobQuitting – when you realize you are done with the 9 to 5 routine desk jobs. Quitting – when you have another more exciting offer. Quitting – When you wish to start your business. When the time has come for you to quit your job to move on to a more challenging job, the toughest part boils down to the resignation part. How do you move out gracefully – without making any mess or causing any awkwardness?  Most importantly why is it important to exit with dignity? Well, you have invested some time, in some cases, a lot of time into the company, you’ve made some relationships, and it isn’t productive to let these relations go to waste. So this article is going to give you some tips to handle your resignation in a subtle manner:

  • Instead of saying “I have received a better offer” or “The compensation offered by this company isn’t competent enough” is exactly what you shouldn’t be mentioning as your reason of resignation. Always mention a more personal reason – “I need to cater more to my family needs” or “I have get out and find some vision and perspective from the outside world” or “I wish to pursue a personal goal and I need to free myself from all other tasks in hand”.
    When you use personal needs as your excuse to quit, no one points finger or argues.
  • Before you make your resignation official, it is important for you to not let it out. Gossips and whispers can ruin your reputation and relationships. The first person who has to know about your resignation is your boss, and then your colleagues and friends. The whole procedure needs careful planning, and you cannot avoid any rumor mills building up.
  • When you are leaving a company it is very important for you talk to everyone and be open about your reasons. Don’t leave the company in a hush-hush leaving everyone to speculations.
  • It is polite to talk to your close colleagues personally. Give your best wishes to them for their future endeavors and if possible you can invite them over to your house for dinner as a token of gratitude for their constant support and encouragement at the work place.

Things can be ended at a good note, without ending relationships. Professional relationships are always helpful, you never know who may prove extremely helpful in your new phases of work and life.