Building Your Financial Future: A Practical Guide For Young Adults

By Jackson Hartz

Looking for a comprehensive guide to managing your money and building a financially secure future? Look no further than "Building Your Financial Future: A Practical Guide for Young Adults." This book is not just any guide to personal finance. It is a one-stop shop for young adults who want to achieve financial security and take control of their financial lives.

It's a curious fact that despite the importance of personal finance, it's not something that's taught in school. Sure, we learn plenty about history, math, and science, but when it comes to managing our money wisely, we're often left to fend for ourselves. Fortunately, there's a solution that can help you take control of your financial future. With this comprehensive guide, you'll gain the knowledge and skills you need to succeed in the real world.

 

This comprehensive guide covers all the essential topics you need to know to manage your money wisely, including:

• Savings accounts: Learn how to build up your savings and create an emergency fund.
• Checking accounts: Discover the best ways to manage your checking account and avoid common mistakes.
• Credit cards: Understand the benefits and risks of credit cards, and learn how to use them wisely.
• Investing: Learn the basics of investing and how to build a strong investment portfolio.
• Budgeting: Create a budget that works for you and stick to it.
• Insurance: Understand the different types of insurance and how to choose the right coverage for your needs.
• Taxes: Learn how to navigate the tax system and maximize your deductions.
• Loans: Understand the different types of loans and how to borrow responsibly.
• Navigating the job search: Learn how to write a winning resume, prepare for an interview, and negotiate a salary.
• AND MUCH MORE

The guide also includes an interview worksheet to boost your confidence and help you land your dream job. With this worksheet, you'll be 100 times more prepared and confident when the interview comes, allowing you to achieve your career goals.

 

But that's not all! This book is also filled with real-life examples and actionable tips, making it easy for you to apply what you learn and track your progress. You'll learn how to build good financial habits, manage your credit, and avoid common financial pitfalls. You'll also gain insights into how to make informed decisions about saving, investing, and planning for retirement.

 

With "Building Your Financial Future," you'll gain the knowledge and skills you need to take control of your finances and achieve your career goals. This guide is the perfect companion to help you make smart financial decisions and build the financial future and career you deserve. So why wait? Start building your financial future and achieve your career goals today with "Building Your Financial Future: A Practical Guide for Young Adults."

• Language: English
• Publisher: Jackson Hartz
• Release date: Apr 27, 2023
• ISBN: 9798215644188

Book preview

Building Your Financial Future: A Practical Guide for Young Adults

Master the Essential Skills to Take Control of Your Money,  Crush Your Goals,  and Live the Life You Want

Jackson Hartz

Copyright © 2023 Jackson Hartz

All rights reserved. No part of this eBook may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the author, except for the use of brief quotations in a book review or scholarly journal. Disclaimer. The information contained in this eBook is for educational and informational purposes only. It is not intended as financial or investment advice and should not be construed as such. The author and publisher are not responsible for any errors or omissions, or any actions taken based on the information contained herein. The reader should consult with a financial professional before making any financial decisions and should always conduct their own research and due diligence. The author and publisher disclaim any liability for any financial loss or damage resulting from the use of this eBook. Your use of this book and its information is at your own risk. All trademarks and registered trademarks mentioned in this eBook are the property of their respective owners. Thank you for reading and abiding by this legal information.

Contents

Title Page

Copyright

Introduction

Savings Accounts

Checking Accounts

Credit Cards

Investing

Budgeting

Insurance

Taxes

Loans

Navigating the Job Search

Conclusion

About the Author

Books By This Author

Thank you

Introduction

Have you ever found yourself wondering why you never learned about personal finance in school? I know I have. It's one of the most applicable and necessary topics that young adults should learn, yet it often gets overlooked. After waiting and waiting for a class that never came, I decided to take matters into my own hands.

My name is Jackson, and I am a student at UCLA studying economics. Over the past eight years, I have taken it upon myself to dive into various personal finance topics such as credit cards, loans, investing, taxes, savings accounts, and much more. I have learned through my own self-study, coursework at UCLA, my internship as a Financial Research Analyst at Wall Street Oasis, and as Founder and President of the Financial Literacy Group at UCLA.

If you haven’t yet, be sure to check out my blog "Money Conversations". Money Conversations is a site designed for young adults in high school, college, and beyond to learn more about basic financial topics. Money Conversations breaks down subjects into simple terms to provide both an informational and entertaining read. I publish new articles every week, so make sure you check back to see if there’s something new that piques your interest.

First, I want to take a moment to express my heartfelt gratitude for your purchase of my book. Your support means the world to me, and I am truly honored that you have chosen to invest your time and resources into my work. As an author, there is no greater reward than knowing that my words have resonated with someone and made a positive impact on their life. Your decision to purchase my book not only supports me as a writer, but it also helps to spread my message to a wider audience. Thank you again for your support, and I hope that my book will provide you with valuable insights and inspiration for years to come.

Personal finance is a crucial skill that will benefit you throughout your life. It affects everything from your ability to pay for college to your retirement savings. Unfortunately, many young adults are not equipped with the knowledge and skills necessary to navigate the complex world of personal finance. That's why I created this book, to provide a comprehensive guide to personal finance specifically tailored to young adults.

In this book, I will cover nearly everything you need to know to have a solid foundation of your personal finances, including topics such as budgeting, saving, investing, credit scores, taxes, loans, and much more. My goal is to provide you with the tools and knowledge necessary to make informed financial decisions that will benefit you in the long run.

Whether you're a college student struggling to balance your budget, a recent graduate starting your first job, or anyone else looking to improve your personal finance skills, this book is for you. I strongly believe that money should be a means to an end, not an end in itself. Financial literacy is important to me because while financial success is not my ultimate goal in life, it is a tool to achieve my dreams and aspirations. Whether it's traveling the world, starting a business, or buying a home, money can help us accomplish our goals and live a fulfilling life.

Unfortunately, many people feel that being unknowledgeable about personal finance is a barrier to achieving their goals. They may feel overwhelmed by the complexity of financial jargon or intimidated by the idea of managing their own finances (you’re not alone!). However, I want to assure you that it's never too late to start learning about personal finance, and it's not as daunting as it may seem.

In fact, one of the most important things to understand about personal finance is that it's not just for the wealthy or financially savvy. It's a skill that anyone can learn and practice, regardless of their background or income level. By developing a basic understanding of budgeting, saving, investing, and other financial concepts, you can take control of your finances and work towards achieving your goals. Ultimately, my goal with this book is to demystify personal finance and provide practical advice and tools that anyone can use to improve their financial situation. Money should not be a barrier to achieving your dreams and aspirations, and I hope that this book can help you gain the knowledge and confidence you need to take control of your finances and live the life you want.

Through my own experiences and research, I have come to understand the importance of financial literacy for young adults. I am passionate about sharing what I have learned to make a positive impact on the lives of my readers. So, let's embark on this journey together. Let's take control of our finances and build a strong financial foundation for our future!

Savings Accounts

Welcome to chapter one, where we'll explore the basics of this foundational personal finance tool. Savings accounts are an essential component of any successful financial plan, providing a safe and accessible place to store your money while earning interest. In this chapter, we'll cover the fundamentals of savings accounts, including how they work, the different types of savings accounts available, and how to choose the best one for your needs. We'll also discuss some common mistakes to avoid when using savings accounts and how to maximize your savings potential.

Whether you're just starting to build your emergency fund, saving up for a big purchase, or planning for long-term financial goals, a savings account can help you reach your objectives. By understanding the ins and outs of savings accounts, you can make informed decisions about your finances and work towards a brighter financial future. So, let's dive in and discover everything you need to know about savings accounts.

Most people know about or have a savings account because it is typically the first account that someone has. Sure, you could stuff cash under your mattress at home, but then that puts you at risk of theft or losing the cash. A savings account is important because it allows you to have a reliable source to save your money and enables you to earn interest while subjecting yourself to zero risk.

While it is simple in concept, there are numerous intricacies that you should know that will be addressed in this section. For instance, did you know that you can only withdraw funds from your savings account a certain number of a time per year? In this section, I will address the pros and cons of savings accounts and the various purposes for having one. Do you have saving goals in mind? I will highlight some of the things you may want to think about saving for.

You can open a savings account at either a brick-and-mortar bank, credit union, or online institution. Some that you may recognize are JPMorgan Chase, Bank of America, SoFi, and Wells Fargo. For more guidance on opening a savings account, keep reading!

Savings accounts are great because you can set up direct deposits so your paychecks from your employer go straight to your account. Also, most accounts support depositing checks via your smartphone now.

Pros and Cons of Savings Accounts

It’s important to consider the advantages and disadvantages of putting your money in an account of this nature. For instance, while these accounts have no risk, the potential returns are limited.

Pros:

Safest place to store your cash because most banks are FDIC (Federal Deposit Insurance Corporation) insured for up to $250,000 per account owner

Potential for growth because of compounding interest (albeit limited)

Easy access to funds (typically takes 1-2 business days to gain access to your cash)

Setting saving goals can help you track your progress toward achieving financial goals

Easy to set up (typically takes less than 15 minutes)

Generally, these accounts have low to no fees

Can be easily linked with a checking account (easy transfers between accounts)

Cons:

Interest rates for these accounts generally hover around 0.5-2.5%, so other options have higher returns (i.e., stocks or bonds)

Depending on the institution, your account may come with withdrawal limits or deposit minimums (you may be charged a fee if you surpass your limit)

If the interest rate is below the rate of inflation, then your cash could lose some of its purchasing power

You cannot withdraw funds and spend your balance at stores like you can with a debit card

As you can see, there are more pros than cons to opening an account, but you consider your options. Research different banks or credit unions to store your money. Typically, as a student, accounts with low fees and no minimum deposits are a smart route to take.

So, why should you have a savings account?

These types of accounts are great because you can earn interest on your account balance without doing any work whatsoever. This interest allows your money to grow by a certain percentage every year (typically between 0.5-2.5%). This interest rate is changed by your bank.

Savings accounts are one of the first steps to making sure you are prepared for any emergencies. Some examples of emergencies are:

Loss of a job

Car repairs

Medical bills

Home repairs

Natural disaster

Family emergencies

You never know when this kind of stuff may happen, so it’s important to always be prepared. The amount you should have saved in your emergency fund depends on your lifestyle and how much you currently have saved. Most experts recommend you save between 3 to 6 months’ worth of expenses (i.e., rent, utilities, food, etc.).

As a student, this depends on your current situation. For example, if you pay for your own housing, saving for rent should be a priority in the instance of an emergency. This way you won’t be forced to vacate your housing. This extra money that you save up will provide peace of mind when it comes to any anxiety about potential emergencies. As a student, it can be difficult to contribute large amounts to your emergency fund, so try to allocate small amounts when you can. If you are able to save some of your money, you will already be ahead of nearly 1 in 5 Americans.

You may also just want to save for a certain life event rather than an emergency:

Vacation

Wedding

Education

Vehicle

Special Occasion

Pet

Home Remodel

Opening A Savings Account

Opening a savings account is simple and I’ll guide you through each step with an example. Having a savings account is one of the first steps to becoming financially literate. So, let’s get you going with setting up an account.

In this section, we will look at setting up an account with Ally Bank, an online federally insured institution. This is not a recommendation, but rather just an example. Make sure to explore your options and figure out what bank works best for you.

I decided to look into an online bank because physically visiting a branch is not of huge importance to me. Although this may not be the case for you if you prefer interaction with your bank in person rather than over the phone. In this case, you may want to consider a brick-and-mortar bank (i.e., JPMorgan Chase, Wells Fargo, Bank of America, etc.).

In this section we will look at the features you may want to look for when on your search for a bank along with how to apply for a savings account.

Important Features of a Savings Account

We will start by looking at some of the features of an Ally Bank savings account. Feel free to look up Ally Bank savings account on Google to follow along. You can also check out my post at moneyconversations.org, which has pictures that accompanies this process of opening an account.

Just off the bat, a few things to note here on the home page:

No monthly maintenance fees are important as a student because I want to save as much of my money as I can

Similarly, I do not have a significant amount of money so no minimum balance requirement is crucial

24/7 customer service is important to me in the instance that something goes wrong, or I need assistance with something

Something important to me is an account with limited fees because I prefer to not be charged to have access to my own money. Upon a closer look at the fees associated with an account, I am satisfied with the information I have found. 

A few other sections of this site I would consider looking at are:

Features

Reviews

FAQs

About Us

These sources of information can provide a comprehensive look into what having a savings account with Ally Bank is like. 

Something very important to look for is if the institution is FDIC insured, which means if something happens to the bank, your money is protected. I found that Ally accounts are FDIC insured under the features section of this page. The reviews can provide some insight into whether people like having their accounts with the bank. I recommend filtering the reviews by most helpful, which are reviews other customers believe provide excellent insight. Another element to look for is the current interest rate or annual percentage yield (APY). The APY is the percentage of your account balance you can expect to earn in a year. 

A Detailed Guide to Opening a Savings Account

Here we will look into the specific process of opening a savings account with Ally Bank. This process may differ slightly depending on the bank you decide to go with. However, setting up an account typically takes less than 15 minutes. The steps for Ally Bank are outlined here:

Tell us about yourself

Fund your account

Enjoy access to your account

Pretty simple!

After clicking on Open New Account, we are brought to a new screen. We must first set up an account with Ally to begin the process. There are also some important pieces of information you must have:

Social Security or Tax Identification Number

U.S. residential street address

Legal name

Birth date

There are numerous different elements to look at here, so we’ll break it down a little bit:

What are the account types? 

1.     Individual. This account type is for individuals aged 18 or older. If you are 18 or older, this is the most common account type as you have full control over the account yourself.

2.     Joint. This account type is similar to an individual account but in this case, two or more people own this account. This is common among married couples because it allows you to pool both of your money together.

3.     In the name of a Trust. This