Blog – Wed 30.11.2015: Money Skills for Young Adults (Part 2)
So let’s continue this week with a few more thoughts on getting your young adult (children) on the right track financially.
- Get a job when studying – but don’t work too much
Let’s presume that your young adult is going to uni or TAFE to study full time. Given that he/she wants to be independent they probably want to work beside their studies to earn some extra money for (most likely) consumption and (less likely) saving. It may (or may not) be appropriate to charge them rent/board if they are still living at home (as discussed last week) and as a parent you may be able to put these funds away as forced savings (call it parental benevolent taxation). This way we can get at least some forced savings out of our young adult. As wants are unlimited and resources are finite there is a tendency for our young adult to want to make more money and thus work more and more. This is good in a way as it teaches them the value of a dollar and the discipline of work but it can be detrimental to their studies and even prolong their studies as the young adult does not study hard enough due to time constrains. As such it is important to find a right balance between paid work outside of studies and time allocated to studies. Our young adult ought to work and make some money but not so much that studies suffer.
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