Twenties Economics | Budgeting

Hello Everyone,

I hope all is well!

Today, we will discuss financial literacy, budgeting to be specific. It’ll be a tough episode but an important one.

Financial Literacy - What It Is and Why It Is Important

University can be an exciting time, full of new experiences and opportunities. However, it can also be a time of financial stress and uncertainty. That's why university students need to learn how to budget effectively. Financial literacy is crucial for university students, particularly minorities and students of color who have historically faced economic disadvantages. Financial literacy is essential to understanding how to manage money, save for the future, and build generational wealth. Without this knowledge, students may struggle with debt, poor credit, and limited financial opportunities. Learning about financial literacy can also help students understand the larger economic and political systems that impact their lives. This knowledge can empower students to make informed decisions and advocate for policies that benefit their communities.

Where Do I Start? With Understanding Why This is Important and How It Can Help You.

University can be an exciting time, full of new experiences and opportunities. However, it can also be a time of financial stress and uncertainty. That's why it's important for university students to understand the importance of budgeting and how to budget effectively.

Budgeting is the process of tracking your income and expenses to ensure that you are spending within your means. It can help you avoid debt, build savings, and achieve your financial goals. Here are some reasons why budgeting is especially important for university students:

Reason 1 - Limited Income

Most university students have limited income, whether it's from a part-time job, student loans, or financial aid. Budgeting can help you make the most of your income by prioritizing your expenses and avoiding unnecessary spending.

Reason 2 - High Expenses

University can be expensive, with tuition, textbooks, and housing costs adding up quickly. Budgeting can help you plan ahead and save for these expenses, as well as identify areas where you can cut back on costs.

Reason 3 - Debt Management

Many university students graduate with significant debt, whether it's from student loans or credit cards. Budgeting can help you manage your debt by ensuring that you are making regular payments and avoiding late fees and penalties.

Reason 4 - Financial Goals

Budgeting can also help you achieve your financial goals, whether it's saving for a study abroad program, paying off your student loans, or building an emergency fund. By tracking your expenses and saving regularly, you can make progress toward your goals and feel more confident about your financial future.

What Do I Need to Do? Or What Are Some Tools I Can Use To Get Started?

Step 1 - Create A Financial Vision Board

Financial vision boards can be useful tools for visualizing and manifesting financial goals. By creating a visual representation of your financial goals, you can keep them in mind and stay motivated to achieve them. Financial vision boards can include images of your dream home, vacation destinations, or even just a savings account balance you want to achieve. By looking at your vision board regularly, you can remind yourself of your goals and take steps to make them a reality.

Pinterest and Canva will be your best friends for this one! Pinterest allows you to find the pictures that emulate your vision and Canva will provide you with the resources to put it together! Both are seamless and interactive for beginners and professionals alike! This will also give you a chance to tap into your creative intelligence which for many often gets neglected.

Step 2 - Obtain a Financial Planner

Obtaining a financial planner can be useful for university students (and those not in university) in several ways. They help students create a budget, manage debt, and save for long-term financial goals. They also provide clarity on where you want to invest, what assets you want to protect, and give you what steps you want to take for retirement.

Flourish Planner Yearly Budget Spreadsheet

Flourish Planner Money Moves Financial Digital Planner

I hope this helps.

All the Best,

LiyaElle KSco.