Managing Your Money

Young adults need a good financial start

Young adults might think they don’t need, or can’t benefit from, a visit with a financial planner. After all, they don’t have much saved so there is nothing to plan with. However there is much to plan for, and a little sound financial advice can go a long way. Here are some reasons to sit down with a Certified Financial Planner®:

-Learn how to budget. If you are living on your own for the first time you haven’t had the responsibility yet of paying bills and learning to make your paycheck last until the next payday. Having a budget means you are on top of your various monthly expenses – you have a plan for paying all the necessary bills, putting some money away in savings and still leaving yourself some extra money to go out and have fun. One of the basic tenets of financial planning is to know where your money is going.
-Choose investments in your company retirement plan. A financial planner can go over the various fund choices in your 401(k) or other retirement plan and help you choose one or more funds that suit your needs. The planner can also give you a strategy for investing future contributions.
-Plan for a big event. You will probably want to buy a house or a car in the next 10 years, or you may be saving money for a wedding. A Certified Financial Planner® can figure out how much you need to save and create a plan to make saving painless.
-Educate yourself. Learn about interest rates and how they work, whether they are for credit cards, auto loans, student loan or other borrowing. See how compound interest can help you reach goals faster. The more you learn the better financial decisions you’ll make.

You can find a Certified Financial Planner® in your area by visiting the FPA.

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