Five essential facts every young adult should know about money

1.Their relationship with money will be their longest. Most relationships will come and go but because of a fundamental reliance on money, it will be the longest relationship they will have. A positive relationship with money built on knowledge and understanding is an essential life skill. 

Financial literacy is too important to be ignored
Financial literacy is too important to be ignored

2.Money is constantly evolving. Although it has been around for thousands of years, it is a mad-made invention that is constantly evolving. Throughout the ages, money had taken on a number of identities including salt, grain and gold to todays paperless, digital versions. Because money is complex and ever-changing, the basics of it require structured learning.

3.They will never make as much money as they think they do. Most adults do this all of the time. They list how much they earn but sometimes struggle to list how much they take home…after the tax and charges are deducted.

4.They will almost always pay more for products and services than they realise (or admit). Again, adults do this all the time. Take the example of a home, all adults know what they paid for it but few ever know what it really cost them…especially after interest charges are factored in. The same applies when using credits to fund the purchase of a family car, vacation and college education. 

5.Time can be their friend…or their foe. Time has a powerful impact on the value of money. In borrowing and savings (as well as investing), time can work to their advantage or cost them greatly. When it comes to student loans, credit card, personal loans, car loans and mortgages, understanding the impact of time can greatly reduce the cost of everyday goods and services and increase personal financial well-being.

Copyright: Frank Conway

Note: A new financial literacy platform (and brand)  is currently in development that will provide simple and easy-to-access financial literacy options for students and young adults. The special project will be supported with a custom-built e-learning platform and include review and analysis as well as a full range of tools, tips and guides. All material content has been specially written for students and young adults to promote learning and understanding of how money works.

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