Must-Have Financial Skills for Young Adults

Year after year, the annual survey taken for the T-I-A-A Institute Personal Finance Index shows low financial literacy for the 18-to-25 age group. A majority of these young adults consistently fail to demonstrate a working knowledge of financial concepts like budgeting, saving, insurance, and investing. Think about what this means. Tens of thousands of young adults are going off to college or joining the workforce today without knowing how to manage their money, avoid overspending, or even build a solid financial future for themselves. These days, we have online banking and instant digital transactions. It’s so easy to use credit and transfer money that many young people live day to day without a plan…until they need a bailout from Mom or Dad! Young adults rarely handle cash, which also means they no longer have a physical connection to their money. When you don’t see and feel your money coming and going, you might not realize when it’s gone. This disconnect can lead to unintentional overspending and a lifetime of debt, not to mention a lack of motivation to save for the future. So, whether you’re a parent of teenagers or a “Gen Z” just starting out, here are a few must-have financial skills and how to acquire them.