Unfortunately, money management is not taught in elementary school. Only 17 states require students to take a personal finance course in high school, but only a handful of them require you to pass a test on the topic.
When it comes to managing finances, the younger generation tends to make mistakes until they learn. With that in mind, here are three management tips for young adults:
1. Begin retirement planning with your first job
If the company you work for offers a 401(k) plan, sign up at the first opportunity. If they don’t provide it, divert some of your funds into an IRA. It’s easier to build your retirement fund as early as possible, so you’ll be able to retire earlier.
2. Use your credit card sparingly
Remember, it’s not your money. Once you use it, you incur debt. Pay it off before it gains interest. A credit card is a good way to build up your credit score, provided you pay it on time.
3. Select your partner wisely
Choose someone whose values match your own, not just where money is concerned, but more importantly, ethical and moral values. Get to know your partner so well that you can trust him or her.