Controlling money early in life can be a challenge. Many young people have no experience in dealing with money and yet have live with consumerist temptations, which can pose a danger to finances, especially with the ease of earning money. credit
The result is a generation that starts getting into debt early on, as beginner salaries and internship grants are usually not enough to support the lifestyle that most young people would like it.
That’s why it’s so important to work hard at financial education for young people and keep in mind that financial control is important for all ages. If you are part of this generation and do not want to be part of the runaway portion, check out how youth financial education can ensure a peaceful life forever and see how to get started:
Analyze Your Current Situation
The first step in starting financial education for young people is to make a careful analysis of the situation. How are your finances? How is your style of consumption? Can you distinguish between what is essential for life and what is superfluous? Are you in the habit of going overdraft or getting personal credit to spend on unnecessary things?
Reflect on these issues and start taking control of your financial life. To help you organize your spending and earnings from the answers you find, you can use tools like GuiaBayment. You enter your internet banking data and it pulls your financial movements automatically.
Start financial planning for the future
With this information in mind, it is time to put what you want into the future on paper, dividing these goals into short, medium and long term. Having enough money for a comfortable retirement, for example, is a long-term dream. Buying a car in the case of one or a 20 year old can be considered medium term.
Having enough money to buy a dress for the prom at the end of the year can be considered short term. Once you have set your goals, you must set a deadline for achieving each goal and then prioritize them in the financial budget, separating part of what you earn to achieve each goal.
Put your hand in the dough
Knowing short, medium and long-term goals makes it easier for you to get organized financially, even if you earn little money, taking into account financial education tips for young people. As you begin financial planning, it is important not to forget two golden rules: never spend more than you earn and save every month.
Choose a budget model so you can realize your dreams, manage spending through a financial controller, and don’t forget to separate a financial reserve if an emergency or unforeseen expense happens. important A good tip is to start using the 50-15-35 rule now.
Create the habit of saving
Learning to save is a matter of habit. The sooner it starts, the better for the future. Set aside a savings amount each month as soon as you receive your salary or grant. This less the temptation to spend more than you should. If you have the possibility of making an investment, always choose the low risk ones are not the risk losing money.