- Published on 26 Aug 2023
- - What is Financial Planning?, Directly Held Investment Portfolio
Remember your first job and that feeling of financial independence? No matter when you started working, handling that initial paycheck was probably a challenge.
Our world isn't great at teaching money skills to young people.
When I was in school, I learned trigonometry. It's useful for triangles, but not for money.
Let's change this by talking openly about money and giving young adults the tools they need.
Talking About Money
People often keep money secrets, even in families. We need to change this.
Parents can help their kids succeed by talking about money openly. This makes finance less confusing and helps young adults choose wisely.
Using Positive Words
When we talk about money, our words matter.
Positive words help us feel good about money.
Instead of saying, “We can’t afford this,” say, “Let’s figure out how to save for this.” This change helps us see opportunities, not just problems. It's a better way to think about money.
Setting Financial Goals
Goals help us know where we're going.
Young adults should set goals for money, like buying a car or paying for school. This helps them stay focused and learn discipline.
We should also celebrate small wins. This makes them feel good and keeps them motivated.
Budgeting Basics
You've heard "Plan to succeed, or plan to fail."
Budgeting is important. It doesn't mean saying "no" to fun; it means using money wisely.
Start with the 50/30/20 rule. Spend 50% on needs, 30% on wants, and save 20%. This helps young adults save from an early age.
Smart Spending
Managing money doesn't mean no fun. It's about being smart.
Young adults need to know what they really need versus what they want.
Spending without thinking can mess up saving plans. Wait 48 hours before buying non-essentials. This helps decide if it's a good idea for their budget and goals.
Building a Better Future We're not just teaching about money; we're helping them succeed.
Let's talk about money and help young adults form good money habits. The change really should start today!
Why not take the next step and talk to a qualified financial planner?
LifeTime Financial Group are specialist (holding appropriate accreditations) advisors who are ideally positioned to assist you with your financial planning requirements. As part of our Private Client Offering, we are happy to assist your children in developing an interest in investing for their futures. Starting with the simpler targets such as their first car or funding gap year travels through to their first home deposit..
If you would like to discuss your financial planning needs, why not call us today on 03 9596-7733? There is no cost or obligation for our initial conversation/meeting.
Alternatively, please make an appointment using our online Book an appointment (Blue button above)
LifeTime Financial Group. A leading privately-owned Melbourne-based Financial Planning practice with no ties to any financial institution.