To kick off Financial Literacy Month, last week's column dealt with how parents can give young adults financial help without weakening their motivation. This week, I want to talk about what these young people can do themselves to build their financial strength.
Interestingly, a recent Young Adults & Money survey points out how timely this topic is. According to the survey, 52 percent of respondents between the ages of 23-28 consider "making better choices about money management" the single most important issue for individual Americans to act on today. Concerns about money management ranked higher than concerns about family relationships, the environment, and personal health and nutrition. It may seem surprising, but in light of the current economic meltdown, it really shouldn't be. The results demonstrate that this age group is clearly disturbed by our weakened economy and looking for concrete ways to avoid some of the financial problems they see all around them.
How Young Adults Rate Their Financial Physique
The survey suggests that when people in this age group look in their financial mirror, they don't particularly like what they see. Fewer than one in five consider their own financial physique to be "toned and fit." More than three in four describe themselves as financially "a little flabby" or "seriously out of shape."
This lack of financial fitness translates into a lack of preparation for life on their own. Consider that:
-- 26 percent of survey respondents say they were surprised to learn how much money it takes to live independently;
-- Only 51 percent are financially independent from their parents;
-- Many admit that they don't feel adequately prepared to make good financial choices about using debt (28 percent), saving for the future (40 percent) or investing (43 percent).
Financial Moves To Make Right Now
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