Avoid These Financial Mistakes at All Cost

Avoid These Financial Mistakes at All Cost

Adobe Stock

Think back to when you were in high school. What financial advice would you most want to give to your younger self? When you’re in high school, it can be a fantastic time to start learning about financial basics, and as you get older, you can start fine-tuning the entire process.

You’re Never Too Young to Start Understanding Money

Brandon Krieg, the CEO, and co-founder of Stash, a financial services and education platform, has this to say about the matter: “You’re never too young to understand what money is, and you’re never too young to understand how to save more than you spend.” “What are the needs? What are the goals? Why are you doing this? Those things have to be decided at the start of the budget, and by the way, these things can change as you get older,” said Krieg. Here are tips that any young adult can use to start building a solid financial foundation:

Budget Like Your Life Depends On It

You might know the basics already—that you shouldn’t spend more money than you make, but sometimes that’s easier said than done. The best thing you can do is to create a system where you can track your expenses and see where your money is going each month. You can do this by creating an Excel spreadsheet or by using an app like Mint to help you manage your expenses. Being able to see everything laid out can go a long way in helping you stick with your budget and creating healthy financial habits over time.

Your Goals Should Be Realistic

When you create financial goals, make sure that you’re being realistic about it. Don’t plan for something so big that you give up before you even get started. Start with smaller goals, and aim for larger ones as your income grows over time. Keep in mind that it’s okay to plan for larger ones, but understand that larger goals will take more time to achieve.

Financially Educate Yourself

Take responsibility for your financial future by taking the time to truly educate yourself. The more you understand about finances, the better prepared you’ll be for what lays ahead in life. There are many online resources available to help aid you in this. For example, the Society of Grownups and The Charles Schwab Foundation both offer easy courses in investing, budgeting, and money management. There are also apps like Stash that have custodial options that enable parents to help give their children a head start in understanding finances and investing.