Learn to Save for Your Future

Date: 
May 23, 2013

 

According to the Federal Deposit Insurance Corporation (FDIC), 28.3% of U.S. households do not have a bank account or rely on alternative means for financial services. It is important that young adults learn better ways to save and manage their money to avoid a lifetime of debt. Using services such as check cashing and payday lending guarantee fast cash however result in high costs. With summer youth employment gearing up, it is important for youth to be reminded about the importance of proper money management.

The Urban Affairs Coalition’s Community Economic Development (CED) department aims to tackle this issue and continue to spread the importance of financial literacy. CED empowers individuals with the financial tools to succeed. CED’s financial education workshops are designed to provide young adults with basic financial management strategies so that they can make smart financial decisions regarding their future.  

CED’s Financial Program Manager Shayna Lear suggests young adults open a student account for free at a local credit union to begin their path to financial success. Lear emphasizes two important components to good personal financial management: planning and relationships. Young adults should plan how much they intend to save prior to receiving their paycheck. Planning in advance requires young adults to think long-term and will increase the likelihood of money being saved. Forming relationships with financial professionals early on can expose young adults to all the possibilities and benefits of making wise money management decisions.  

A good tip when saving is to think in percentages rather than dollar amounts. Thinking in percentages creates exponential growth and will result in more savings over time. Lear advises young adults to follow these four financial steps as they think about money: spend some, save some, share some, and invest some.

http://money.usnews.com/money/blogs/my-money/2012/09/28/how-to-cash-a-check-without-a-bank-account-