Financial Security at a Young Age

Fours Steps to Achieving Financial Security While Your Friends are Living at Home

It is vital for today's generation to achieve financial security at a young age. Social Security and pensions will not be around for people that are under the age of 30 so now more than ever, many experts are saying young adult financial security needs to be a priority.

Finding Financial Security at a Young Age

While most people already know they need to plan for their future many don't know how to start. With uncertain economic times many parents of this generation won't be in a financial position to help their children out later. That means giving young adult the tools necessary to achieve financial security is important to both parents and children alike.

"I think it's an imperative, it something we absolutely must do, we're loosing a lot of ground because of weakness in this particular area. We would strongly support financial literacy being a fundamental part of high school curriculum." Rod Paige Former US Secretary of Education

According to the National Association of State Boards of Education, most workers aren't participating sufficiently enough to allow comfortable retirement. In contrast, according to studies conducted by the Treasury Department, young people that receive practical financial education in high school have a higher savings rate, contribute more to their 401k plans and have a higher net worth.

How to Achieve Financial Security at a Young Age

Simple steps you or your children can take to secure your financial future.

o         Invest early - The earlier you start the greater advantage you have to obtaining financial security. Compounding interest offers the young a tremendous advantage.

o         Consistent investments - Consistent investing over a long period lead to long term wealth creation.

o         Tax benefit vehicles - A Roth IRA may allow you to withdraw money at retirement tax-free.

o         Real estate - Real estate investments provide a great hedge against inflation.

Young adults will have a huge benefit by saving now. For example, if an 18-year-old invests just .41 a day in accounts earning 12% on average, which is close the S&P 500's return of 10.5%, they can retire with over $1.3M at age 65.

So the key to young adult financial security is setting priorities. For example, as a parent you could point out to your child that they could buy a new iPod, or they could invest it and someday have enough to buy a Mercedes outright. It won't be today or tomorrow that they'll find material satisfaction, but with time the rewards can be much greater.

Vince Shorb, creator of the multi-media course 'Financially Free by 30' provides young adults with real world money advice so they can achieve financial security at a young age. Visit www.FreeBy30.com for free books and video courses.