Financial Stuff Kids Need to Know Before They Leave Home

1. Money’s not everything but it is important. A life WITH money is certainly easier than a life without money.

2. Money won’t bring you happiness but it will pay the bills.

3. The simpler your life, the better.

4. Save AS MUCH AS YOU CAN while you’re young. One thing you can never get back is TIME.

5. Choose a vocation you love but make sure you’re willing to live within the budget constraints of that vocation. A teacher isn’t going to be able to have a big fancy house and a fancy car but can still have a comfortable life if they live within a budget.

6. Live within your means (goes along with #5).

7. Stay away from credit card debt. You have been warned.

8. Not having credit card debt will put you in the minority but will open up all kinds of doors for you financially.

9. Understand what a mortgage amortization looks like.

10. Understand the time value of money.

11. Understand the math behind loan calculations.

12. Understand how your credit score is calculated.

13. How to evaluate a student loan and understand the long term implications of the loan.

14. How to create a household budget.

15. Understand asset allocation.

16. How to practice financial PATIENCE! Things will come. Just give it time. You’ll enjoy things much more when you can actually afford them.

17. Don’t buy a new car right out of college. Give yourself some time to adjust first. Don’t rush into anything.

18. Take a money management class with your future spouse before you get married.

19. Understand how income taxes are calculated.

20. Buy nice clothes when they are on sale but don’t use credit cards to pay for them.

21. Buy good insurance but don’t get suckered into something you don’t need.

22. Have enough cash available to be able to raise the deductibles on all your insurance. This will save you a lot of money on insurance premiums.

23. Don’t gamble.

24. When you get a job, do the best job you can regardless of what job you are doing.

25. Leave a job on good terms. NEVER burn bridges.

26. Read lots of books (including the Bible) on personal finance, career, and self-improvement.

27. Help people.

28. Give of your time and money.

29. Max out your company’s 401(k). You’ll get used to living on less.

30. Be thankful for what you have because there always people who have less than you do.