With younger people going through financial struggles more each year, many wonder what the solution is. Some people speculate that the lack of financial education is what is contributing to the problem. Learning helpful financial skills might be the best way to combat this and it is never too late to learn effective financial techniques. However, if you find yourself falling into bankruptcy, you may want to ask a Kingsport bankruptcy attorney for help.
COMMON FINANCIAL STRUGGLES
Many people point to a lack of youth financial knowledge as the source of financial struggles for young people. However, there are numerous factors contributing to this. For one, the average amount of student loan debt has increased by 56% from 2004 to 2014 with subsequent increases in credit card debt amongst young people.
The lack of financial education remains prevalent amongst younger generations. High schoolers only scored 48% of questions correctly, on average, for a financial literacy test. Key financial skills younger generations are missing out on learning include things like how to save, banking, interest rates, and credit cards.
Those who do not know how interest rates build on debt and credit cards are more likely to make financial mistakes. Overspending and losing track of debt owed can quickly lead to financial pitfalls. Not only that but many young people are left unaware of financial scams and predatory lending that could hurt them financially.
Since many schools do not formally teach financial literacy, the only other place to learn financial literacy is through parents and friends. Friends may not know how to manage their finances either and may end up teaching unhealthy financial practices. Not all parents instill financial skills in their children. This leaves many young people open to financial failure.
BEST FINANCIAL TIPS FOR YOUNG PEOPLE
There are important financial skills parents can teach that may reduce financial struggles amongst new generations. The most important financial skills to teach are:
- Importance of long-term savings
- How to manage money and budget
- Setting financial goals
- Ways to recognize trustworthy financial resources and avoid scams
Many of these skills involve learning critical thinking skills, focusing on future goals, and planning. Some of the best financial tips for young adults are designed to build a strong financial foundation. These tips include:
- Set goals and save for them
- Divide your finances and assign uses of your money
- Start saving now and make saving an automated transaction
- Find ways to cut unnecessary expenses to move closer to financial goals
Having financial goals gives you a roadmap for steps to take, how much to save, and when to budget. Managing money is mostly about knowing what to use your money for, when you can spend, and when to save. Developing a budgeting plan is helpful for this.
BANKRUPTCY ATTORNEY IN KINGSPORT, TN
Going through bankruptcy alone can be an exhausting, terrifying process. You can contact us today at Tom Bible Law by dialing (423) 690-7712 for a consultation about your financial dilemma. Our experienced team of Tennessee bankruptcy lawyers can help you figure out your best options for bankruptcy. We can be found throughout the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.