Finances for Young Adults: 6 Tips to Know header image

Finances for Young Adults: 6 Tips to Know

Are you just getting started in your career and wondering how you can best manage your money? Maybe you feel like it’s time to start investing and you’re looking for financial tips. If you’re a young adult, here are six financial lessons you should master by 40. If you haven’t mastered them yet, don’t worry! There’s still plenty of time to catch up. Read each of the below scenarios, then rate yourself and find out what you’ve mastered.

1. Stop spending your whole paycheck, and stick to a budget.

Having a budget is a key step toward saving money. By creating and sticking to a budget, you’ll help ensure you’ll have enough money for the things you need and the things that are important to you.

Rate Yourself:

On a scale of 1-10, how well are you doing at implementing this financial tip?

1 = I’ve never heard this financial lesson.

10 = I’m already using this finance tactic in my life.

 2. Choose an insurance policy that provides the adequate amount of coverage in cases of emergencies.

Insurance policies can help protect you and your finances when things go wrong. There are many difference kinds of insurance to consider as a young adult, including life, home, and auto. Insurance can help provide protection from liability, damages, and financial loss. Protecting yourself and your assets against loss is one of the most important reasons for having the right kind and adequate coverage.

Rate Yourself:

On a scale of 1-10, how well are you doing at implementing this financial tip?

1 = I’ve never heard this financial lesson.

10 = I’m already using this finance tactic in my life.

3. Maintaining a healthy credit score will help you if you need to borrow money.

When creating financial strategy, remember you have to manage your credit score, too. Your credit history can determine what kind of loans you’ll qualify for and the interest rate you’ll pay on any loans. Building a solid credit history can have a big impact on your financial future.

Rate Yourself:

On a scale of 1-10, how well are you doing at implementing this financial tip?

1 = I’ve never heard this financial lesson.

10 = I’m already using this finance tactic in my life.

4. Have a financial backup strategy that doesn’t depend on another person.

A financial safety net is an important piece of a responsible money management plan. Without a financial backup strategy, you could find yourself one incident away from a financial collapse. A solid backup strategy could include a savings account with several months’ worth of living expenses, adequate insurance and maybe even a secondary source of income.

Rate Yourself:

On a scale of 1-10, how well are you doing at implementing this financial tip?

1 = I’ve never heard this financial lesson.

10 = I’m already using this finance tactic in my life.

5. Start saving for retirement today.

The sooner you begin saving, the more time your money has to grow. With compound interest, a few dollars today could turn into big money over the course of a lifetime. As a young adult, now is the perfect time to get started.

Rate Yourself:

On a scale of 1-10, how well are you doing at implementing this financial tip?

1 = I’ve never heard this financial lesson.

10 = I’m already using this finance tactic in my life.

6. Write out your financial goals for the future.

Goals often start out as dreams or wishes, but when you put an action plan behind them, they turn into something you can achieve. This is especially important with financial goals because they require regular consideration and effort over a long period of time. Having a workable financial strategy can help you make your goals a reality.

Rate Yourself:

On a scale of 1-10, how well are you doing at implementing this financial tip?

1 = I’ve never heard this financial advice before.

10 = I’m already using this finance tactic in my life.

How Did You Score With Your Financial Knowledge?

  • 6-15:  While some of these financial lessons were new to you, now is the best time to get started!
  • 16 - 40: You have an excellent baseline of knowledge to boost your finances, but there’s more you can do to secure your financial future.
  • 41 - 60: Congratulations! Your financial future is looking bright!

Protect Your Future with Farm Bureau

Take the next step in preparing for your future by contacting a Farm Bureau agent today. An experienced agent will help you find the right insurance coverage for you to plan for all of life’s surprises.

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