TexasEscapes.com HOME Welcome to Texas Escapes
A magazine written by Texas
Custom Search
New   |   Texas Towns   |   Ghost Towns   |   Counties   |   Trips   |   Features   |   Columns   |   Architecture   |   Images   |   Archives   |   Site Map


Columns

Counties
Texas Counties

Texas Towns
Texas Towns


Columns | Go Far With Kovar

Financial lessons for young adults

by Taylor Kovar

July 6, 2022

Hi Taylor: I've got two kids in college and I'm excited about their future careers but nervous about how they'll manage their money. Any tips I can pass their way? - Sydney

Hi Sydney:
So. Many. Tips. Understanding how to make, save, and spend money is invaluable for anyone transitioning from a carefree teen to a responsible adult. Most lessons are learned through experience, but preparing your adult children for those experiences is what can make all the difference.

1. Debt. There's good debt and bad debt, but people have to earn the privilege of messing around with good debt. It's a rare 20-year-old who can take out a loan to start a business or become a property owner, so one of the best pieces of advice you can give is to avoid credit card debt like the plague. The average person in their early 20s has about 10K in debt, and every dollar owed is one that's not earning interest or doing anything proactive. Again, people typically learn the hard way when it comes to paying interest. If you're able to make your kids understand how bad debt holds a person back, you might save them years of financial struggles.

2. Budgeting. People budget to varying degrees, with some tracking every penny and others dividing their funds into a few general categories. My ideal budget has 10% going to tithes/charity, 10% going to investments, 10-20% going to debt or other savings goals, and the rest covering the many expenses life throws your way. You might not be able to get a college student to commit to this kind of structure right away, but teaching them to keep multiple financial balls in the air will prepare them for long-term success. Otherwise, they'll put all their earnings toward one shiny object and hamstring their spending power in a big way.

3. Investing isn't just for older people.
It seems so boring when you're at the end of high school or the beginning of college. Buy stocks instead of going on a ski trip with friends? No way! Meanwhile, if a 19-year-old starts investing $50 a month, that money will keep compounding, without ever bumping the investment amount up from $50 (hopefully the investment amount will go up over time)! The point is, the earlier you start investing, the better!

It's hard to make people understand patience and strategy when they haven't had a chance to learn these things practically. At the same time, discussing these broader topics and leading by example can help a young adult make better decisions than someone with zero guidance. Hope this helps!


Taylor Kovar July 6, 2022
More "Go Far With Kovar"



Legal Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com, or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.


Texas Escapes Online Magazine »   Archive Issues » Home »
TEXAS TOWNS & COUNTIES TEXAS LANDMARKS & IMAGES TEXAS HISTORY & CULTURE TEXAS OUTDOORS MORE
Texas Counties
Texas Towns A-Z
Texas Ghost Towns

TEXAS REGIONS:
Central Texas North
Central Texas South
Texas Gulf Coast
Texas Panhandle
Texas Hill Country
East Texas
South Texas
West Texas

Courthouses
Jails
Churches
Schoolhouses
Bridges
Theaters
Depots
Rooms with a Past
Monuments
Statues

Gas Stations
Post Offices
Museums
Water Towers
Grain Elevators
Cotton Gins
Lodges
Stores
Banks

Vintage Photos
Historic Trees
Cemeteries
Old Neon
Ghost Signs
Signs
Murals
Gargoyles
Pitted Dates
Cornerstones
Then & Now

Columns: History/Opinion
Texas History
Small Town Sagas
Black History
WWII
Texas Centennial
Ghosts
People
Animals
Food
Music
Art

Books
Cotton
Texas Railroads

Texas Trips
Texas Drives
Texas State Parks
Texas Rivers
Texas Lakes
Texas Forts
Texas Trails
Texas Maps
USA
MEXICO
HOTELS

Site Map
About Us
Privacy Statement
Disclaimer
Contributors
Staff
Contact Us

 
Website Content Copyright Texas Escapes LLC. All Rights Reserved