Young adults in school and college are unaware of the importance of financial awareness. Teenagers find it tough to manage finances in the real world due to their lack of awareness. The problem becomes predominant when they have to meet medical expenses. It is important to make a beginning somewhere to understand the dynamics of saving money for a safe, prosperous and comfortable future. Some of the tips to follow to understand the importance of saving money are listed below:
Significance of self control: Parents should teach their children the value of self control. The earlier the skill is taught the better a child will be able to manage finances. Teach them to buy with saved up money and not on credit. Tell them they end up more paying interest on credit purchase, instead save some money and then indulge in a purchase. The habit of buying on credit cards may be convenient but you end up paying for the items years together, where you can save on your income and make an interest free purchase.
Control your financial future: Take charge of your life. Do not allow others to dictate terms son your financial future. Do not invest in a property unless you are ready for it. Paying adjustable rate mortgage can only result in foreclosures, leaving you bankrupt. Knowledge on personal finance management can protect you from unpleasant financial emergencies.
Keep emergency funds: Despite growing expenses find little money to save in your piggy bank every month. However, tight your budget does not give in on this habit. Save for emergencies and you will see yourself outside financial troubles. Follow this and soon you will find money for property down payment, vacations abroad and retirement money. Put this money in saving account or bank deposits with decent interest rate.
Learn more on tax savings: Understand the nuances of income taxes. Find out how much remains of your salary after tax deductions and whether it is enough to meet your financial aspirations. Online tax calculators can help in this regard. It tells you what is your gross play and your carry home.
Take a health insurance: If you haven’t taken a health insurance it is important to start now, else you will end up paying all your saving on hospital bills incase health emergency strikes you. Financial experts stress on the need for health insurance to handle health emergencies. Statistics taken from hospital management software at a reputed hospital informs the poor awareness on medical insurance among youngsters. See how a 12 year old from Brisbane has started to save her weekend income at http://www.abc.net.au/news/2018-03-06/financial-advice-from-12-year-old-saving-income-for-house/9509152. Insurance providers offer low priced premiums to accommodate people from all income groups.
Protect your wealth: Make sure all the money you earn is protected. At the end of the month you should be able to justify your expenses and have a fair amount of savings. Fire or burglary insurance, home insurance, health insurance can safeguard you from emergency expenses. Disability income insurance helps you earn steady income even when you are away from work for a long period due to injury or illness.
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