Grace Jackson Suntrust‘S Tips onHow and Why to Encourage Financial Planning in Different Stages of Life
- As a young adult: This is a phase when the finances are primarily dependant on the gifts and pocket money that children get. This is the reason why they need to be very careful with every penny earned and saved. The best way to go about this in an organized manner would be to teach children to designate three separate piggy banks to saving, sharing and spending. All the three aspects are essential and when they know how much they have in which kitty they can always plan their expenses accordingly. In fact, if their assessment shows insufficient funds you can also encourage them to take up small jobs like car wash and lawn mowing to earn the few extra dollars that they may need for a specific toy or video game or outing.
- As a teenager: Well, in this phase of life peer pressure is what majorly channels an individual’s lifestyle and they tend to give in to various situations just to keep up appearances. So, this is the phase where the financial planning often tends to get all mangled due to unexpected expenditures. Again, the three kitty concept that you may have learnt as a child to save for expenditures, charity and future assets can come in handy here. At this stage you can also introduce the concept of loans and interests to the teenagers. They should be allowed to take loans from their elders or from their other two piggy banks to pay for their desired items and then work up to repay the amount within a stipulated time frame.
- As professionals: Most of the time, young people in their late teens and early twenties take up pat time jobs. They do so either in order to start earning a living to support their family or to save up in order to fund their higher education. So if you are a young professional earning to save up or support, the first thing you must have is a saving account where you keep your savings. If the bank does not have minimum balance criteria you must set a target for yourself so you know how much resources you really have for the month.
- As family persons: Well, as Grace Jackson Suntrust suggests, at this stage a person need to become extremely conscious about his/her finances as the needs and expenses start increasing by the day. People running a family have a plethora of commitments and liabilities to fulfil due to which proper financial planning and management is very essential.