Financial Planning 101: Fundamentals for Young Adults

You are in your teens and you start to see the world. Imagine yourself, with your title under your arm, as an independent consumer.

What would your dream life be like? Create a checklist.

NECESSARY EXPENSES:

Housing: Living with your parents. Your own department. Share an apartment.

Transportation: Your own new car. Your own used car. Public transport. Bike and walk.

Food: Eat at your parents’. Half at your parents and half in restaurants. Fast food. Cook in your own home. You cook at home and eat out sometimes.

Basic services (water, electricity, gas): Your parents pay. You share the payments with your parents. You share the payments with your roommate. You pay the complete bill.

Communications (cell phone, internet, cable): Your parents pay. You pay.

Clothes, washing, hairdressing, cosmetics: Your parents pay. You pay.

Others (gym, doctors, pets): Your parents pay. You pay.

College loans: Your parents pay. You pay.

Taxes: Paid by your parents with you as a dependent. You pay.

Medical: Your parents pay. You pay.

Savings: You pay yourself.

LIFESTYLE EXPENSES:

Outings to concerts, movies, parties, walks, gifts, vacations, books: Your parents pay. You pay.

What we just did is examine your life.

We have divided into fixed and necessary expenses; and variable and lifestyle expenses.

How much will you need per month to pay for your dream life? To find out you need to make a budget based on the items addressed above and any additional elements that may not be considered in that list.

Budget rule # 1: spend less than you earn.

Why?

To cover expenses and not accumulate debts

PLAN YOUR INCOME

Where are you going to work and how much do you hope to earn?

PAYMENT METHODS: with what are you going to pay each expense?

• Cash

• Check

• Debit card: it is a means of payment that replaces cash, they debit the money from your account.

• Credit card: remember that the card is not more money, it is a credit that must be paid.

Planning helps you make good financial decisions.

Three basic rules that illustrate you in these videos: Savvy Credit Video Festival (formerly Financial Awareness Video Festival) – YouTube