Money Management Course Most Useful for Young Adults
Students often complain that they won’t use what they study in school later in life. One course young adults 18 – 24 say they feel would be most useful is money management, according to a new survey from the National Financial Educators Council (NFEC).
Millennials are facing a tough future. They may be the most educated generation, but they’re starting out in a post-recession America with the burden of student debt and uncertainty about retirement. Add to that that one in five Millennials is providing financial support to parents, and the money management picture gets quite complicated for these young adults. They’re not making the wisest financial decisions:
- 76% of young Millennials (ages 15-24) said they know little or nothing about how to invest
- Nearly half (47%) of Americans this age believe that a savings account, earning minimal interest, is the best way to prepare for retirement
- Only 17% of those (ages 15-24) said they feel that the stock market is the best way to grow their money.
Here are some pointers that can address the financial trends Millennials are experiencing:
- Improve your financial literacy. When tested on financial concepts, only 24% demonstrated basic financial knowledge on a financial literacy quiz.
- Work out a plan to pay student loans, so that it is not a constant worry. 54% have concern about their ability to pay their student loans.
- Create a budget, and learn to live within your income. Nearly 30% of Millennials are overdrawing their checking accounts.
- Learn about loans and interest rates, so that you fully understand the consequences and total cost of using alternate financing services. 42% of Millennials have used payday loans, pawnshops, auto title loans, tax refund advances, and rent-to-own products.
- Make retirement saving a priority, and never tap into that account. More than 20% of Millennials have used their retirement savings in the past year.
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