It can be difficult for young people to spend money considering and imagining future events that seem far-fetched, such as retirement. Understandably, they consumed all money in a present state to solve their current problems, overcome present challenges, and deal with lurking unexpected events. However, one of the biggest goals in financial education is supporting all young people to realize that every decision they make at a young age influences their future directly and indirectly. This chapter aims at highlighting how young individuals can factor their financial future into their present financial plans.

How to

Here are some rules you should take account:

As you set your goals, separate your short-term goals from your long-term goals.
As you map your financial hopes and dreams, create a long-term map.
As you accept a job or choose a career, ask if this would be what you would want to do for years to come.
As you commit to living in a location, check out amenities and facilities for long-range planning.
As you decide on a major consumer purchase, such as a car or a house, think of its longevity and draw a financial replacement plan and a timeline.
As you start a family, think of raising future leaders of a nation and project your investment in their education.
As you create an investment portfolio, project a dream of early/comfortable retirement.

Your goal is to link a future benefit for every present financial decision. This will help you in many ways, but most important, it will divert you from making detrimental financial decisions that could harm your future.

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Practice

Now that you know how to factor your financial future into your present financial plans, think of paying it forward and discuss your ideas with a friend or a family member.

Congratulations! You can move on to Chapter 5. Strategies for reaching financial freedom and security in life.

To review the full module on After graduation, click here.