Young Dumb and Broke

Growing into adulthood can be exciting for some especially those whom will be on their own for the first time. A work-life balance between school and career along with paying for everyday necessities may seem like a chore for some let alone manageable.  

Today 32% which is about a third of young adults are classified as financially cautious, meaning they possess only a little management skill and a stable income. While another 36% are categorized as financially "at risk" according to a study by the University of Illinois this is because they are unable to drop income within the year and has zero savings to support themselves let alone any form of emergency funds. 

Shocking another 10% revealed that they were struggling with money management to the point where they would avoid seeing a doctor and putting their health in jeopardy due to the financial constraints. Sadly only 22% of people were cleared to be financially stable by that we mean having the ability of havings savings and clearing their financial services.




"A lack of financial education can have serious consequences, especially for young adults preparing to choose colleges and the loans they’ll take to attend these schools."

The lack of financial planning and education has resulted in serious consequences, especially for young adults who are preparing for the future be it student loans or personal finances.  That's why here at Ausforex we are dedicated to helping young adults achieve financial freedom and providing a platform where they can know more on how to better themselves. 

Read more about: Too poor to retire, the sad truth

There is a difference when learning between saving and investing, it's impact on student loans and how credit works, and picking a suitable job and forgoing unnecessary purchases are some of the most important money lessons that most young adults should understand.

No one is safe even those who are members of the “financially stable” group weren’t all that confident in their financial literacy, the researchers in the most recent University of Illinois study said.

Reality sinks in when we realize that children and young adults don’t learn lessons about money in school, they will pick up their parents’ financial habits instead. If parents have bad money habits, kids adopt them too, according to a T. Rowe Price study from 2017. 

Another study from the Consumer Financial Protection Bureau in 2015 found parents was “critical” in forming their children’s financial literacy.