Financial Management for Young Adults
Abstract
This paper is to highlight ways by which the young adults can manage their financial obligations in a more approachable way, to help eliminate high debts. This is especially directed to those who are still in school and those who are just starting life on their own and might be gambling with high credit card debt and student loan repayments after completion of their schooling.
Recent studies from Arizona Pathways to Success for University Students, explains that consumer financial choices are increasingly more complex and that, even young adults should now act and grab quality financial decision making skills to enable them carry out their financial responsibilities. A model for developing capability which suggests that the more we are aware of our financial obligations, the more we grow and make changes in our financial behavior. Changes in knowledge and awareness enlighten the young adults about their financial control and this is enhanced through objective knowledge. Self awareness and financial behavior are linked in a manner such that the more one is aware, the greater the chances of proper financial behavior ( Soyeon & Serido, 2011).
All they have to do is to manage their finances in a better manner by observing various guidelines which help them to take control and establish real financial independence as explained by Torabi (2010).
Introduction
High credit card debt and student loan repayment have been seen to cause inconveniences to the young adults just because of lack of proper preparedness and awareness, when it comes to dealing with such matters of financial management. (Giuseppe, 2012) tells us that mental health professions perceive money to be corrupting people and that it is not right to have too much of it. With adequate management skills, this statement could be turned around such that the available money is used to help the young adults in managing their finances, however little or much and getting out of the hook of high
This paper is to highlight ways by which the young adults can manage their financial obligations in a more approachable way, to help eliminate high debts. This is especially directed to those who are still in school and those who are just starting life on their own and might be gambling with high credit card debt and student loan repayments after completion of their schooling.
Recent studies from Arizona Pathways to Success for University Students, explains that consumer financial choices are increasingly more complex and that, even young adults should now act and grab quality financial decision making skills to enable them carry out their financial responsibilities. A model for developing capability which suggests that the more we are aware of our financial obligations, the more we grow and make changes in our financial behavior. Changes in knowledge and awareness enlighten the young adults about their financial control and this is enhanced through objective knowledge. Self awareness and financial behavior are linked in a manner such that the more one is aware, the greater the chances of proper financial behavior ( Soyeon & Serido, 2011).
All they have to do is to manage their finances in a better manner by observing various guidelines which help them to take control and establish real financial independence as explained by Torabi (2010).
Introduction
High credit card debt and student loan repayment have been seen to cause inconveniences to the young adults just because of lack of proper preparedness and awareness, when it comes to dealing with such matters of financial management. (Giuseppe, 2012) tells us that mental health professions perceive money to be corrupting people and that it is not right to have too much of it. With adequate management skills, this statement could be turned around such that the available money is used to help the young adults in managing their finances, however little or much and getting out of the hook of high
References: Consumer Financial Protection Bureau (CFPB) April, 2013: Transforming the financial lives of the generation of young Americans Farnoosh Torabi (2010), The young Professional’s Guide to taking control of your money: Pearson Education. Jack R Kapoor (2011), Personal Finance 8E: Mc Graw-Hill Education Jeff Madura (2010), Personal Finance, Student Value Edition: Prentice Hall Joyce Serido, (2012) APLUS: A Research initiative of the Take Charge America Institute: Retrieved from http://aplus.arizona.edu/ Mansfield P, & B. Pinto. (2008) Consumer Vulnerability and Credit Card Knowledge Among Developmentally Disabled Citizens The Journal of Consumer Affairs (2008) Migali Giuseppe (2012), Funding Higher Education and Wage Uncertainty: Income Contingent Loan versus Mortgage Loan, Warwick Economic Research Papers, Department of Economics, University of Warwick Soyeon Shim & Joyce Serido, Sep 2011) Young adults’ financial capability (Arizona Pathways To Life Success for University Students - APLUS) wave 2