International Youth Day is a great opportunity for youth, their parents and wider support networks to consider how they support their young people with learning about money, the value of money and the power of prudent financial management: budgeting, saving, investing and managing debt. By educating our young people early on about financial wellbeing, we can grow financially capable young adults.
For some families and peer groups, talking about money can be awkward. Elements of personal finance such as how much someone earns or how big their mortgage is, are taboo subjects for some people. Feelings of emotion, conflict, jealousy, embarrassment and anxiety are all emotions tied up in talking about money and sharing your personal financial situation with others. But don’t we owe it to our young people to share our financial knowledge, personal finance basics and the lessons we’ve learnt?
If you’re under 30 years of age and keen to understand how to manage your finances, this article is for you. A 2021 Money Week report stated that 1 in 4 Kiwis lack confidence in managing money. We’d love to see our youth improve their financial knowledge and change this statistic. If you have questions about investing, KiwiSaver, planning for your retirement, student loan debt, mortgages, budgeting, insurance or general debt, then read on for some handy tips.
Do you use simple budgeting techniques every day, week or month? Budgets aren’t difficult but are important – to ensure you have enough money coming in to cover your expenses, and to understand just how much money you’re spending in areas that you could cut back on and redirect your money elsewhere. We’ve previously shared household budgeting tips which are relevant no matter your stage of life. Do take time to understand which of your expenses are fixed, regular and variable. Do you have a little leftover each month to build up an emergency savings or splurge account?
If you’re comfortable with the budget you have in place, think about whether you have any personal financial goals in mind. Financial goals can be short-term (0-3 years) – think holidays and car purchases; medium-term (4-9 years) – including house deposits or house renovations; and long-term (10+ years) – such as retirement funds, paying off a mortgage or significant travel. Financial goals aren’t just savings related, but can also include paying down debt and consolidating high interest debts into a single lower interest loan.
Finally, do you have a good grasp on your personal finances? Outside budgeting and setting financial goals, personal finance encompasses earning, spending, saving, investing and protecting your assets and financial wealth.
We all have expenses, no matter how frugal or self-sustainable our lifestyles. If you’re keen to understand how to spend less of your hard earned money, we’ve pulled together some helpful tips to get you going:
For young adults without the ties of dependent children or mortgage payments, this is a great time to earn more income in your downtime. Here’s a few thought starters for your next side hustle:
A good question to ask yourself is whether your debt is good or bad. Is it helping you purchase a capital asset (such as a house), or securing your financial future (a student loan to pay for tertiary education)? A car loan so you can get yourself a reliable vehicle to drive to work each day can also be considered good debt. We don’t recommend borrowing money for short-term pleasure or gain – how much do you really need that new model Playstation or iPhone?
For those already managing multiple debts, a debt consolidation loan can be a sensible decision. If a single debt consolidation loan can reduce your average interest rate across multiple loans or lines of credit, and you can pay off your debt faster, this is a sensible approach to proactively managing your debt obligations.
With Nectar you can borrow unsecured up to $30,000, or as little as $2,000. Use our loan repayment calculator to find out how much you could get.
Do you need a great rate on a personal loan? We’d love to help with your personal loan requirements. Find out how much you could borrow and learn more about our personal loans. You can get started with Nectar and get a personalised loan quote online which will include your interest rate, maximum borrowing amount and repayment options. Borrow better, faster today!*
*Nectar’s lending criteria and responsible lending checks apply.
