It’s a running joke amidst individuals of my age group that none of us grasped the art of handling our personal finances until it became an absolute necessity, yet we all acknowledge the fact that mitochondria serves as the engine of the cell. Over the years, we acquire a plethora of knowledge in school, however, there is a growing curiosity as to why practical financial skills are not included in the curriculum. While I could spend hours lamenting about the public education system, instead, let’s highlight some essential skills that everyone should be familiar with. These skills are crucial for individuals with teenage offspring to educate, as well as for young adults themselves.
First and foremost, acquaint yourself with tax filing. Despite the convenience of services like TurboTax and H&R Block, these services are not foolproof and can be costly if you require detailed assistance. Especially if you find yourself in a complex financial scenario (which has undoubtedly been a common occurrence in recent years), comprehending the ins and outs of your financial flow is imperative. Once you have organized your financial details, you can utilize a free tax filing service to submit your documents.
Secondly, maintain a balance between your checking and savings accounts. Given that paper checks are rarely used for transactions nowadays, the need to reconcile a checkbook is virtually non-existent. Nevertheless, it is still prudent financial conduct to review your expenses periodically, typically through an online banking platform. Regularly monitoring your earnings and expenditures adds a sense of tangibility to your finances; observing that figure decrease underscores the finite nature of money and the importance of oversight.
Lastly, grasp the concept of recurring life expenditures such as mortgages and installment plans. Personally, I was unaware of the concept of a mortgage until my twenties. Even if arrangements like a mortgage are not immediately necessary, understanding their structure and function is valuable if only to mitigate the likelihood of requiring such services.
