Delilah M. – Marina High School

In order to attain the best financial success, it is imperative that one starts early. It is best to get in the habits of saving money early in one’s life.  By getting in these habits early on, they become lifelong behaviors that one will continue well into their old age.  The best habits are ones in which a person takes a portion of every pay check and puts it in savings to be used later on when they need it.  It is crucial that one does not simply spend their money as soon as they receive it.  Rather than paying for the lifestyle one wants as soon as they get a little money, it is important that they save up for the lifestyle they want but can also afford.  This process is called delayed gratification.  Furthermore, a longer time saving will also result in a greater accumulation of money.  So, in order to become a better saver, a young adult must simply start by just putting money in a savings account.  No amount is too small; the more important factor is that they start.

Young adults must also identify the necessity of savings.  Simply knowing how important it is will go a long way in their dedication to saving.  By being aware and educating themselves on how to make a better financial future, young adults will come to view the practice of saving as the necessary exercise that it is.  If they understand the importance of it they are more likely to stay committed.  This commitment will lead to the regular contributions to savings.  If they are not committed to their savings it will not be beneficial to them.  This lack of commitment is usually the result of a lack of education.  Therefore, one of the best ways to make sure young adults are becoming better savers is to educate them.

Delayed gratification is also part of remaining debt free.  It is important for young adults to maintain the lifestyle they can afford, not the one they want necessarily.  In other words, young adults need to buy stuff only with the money they have and only with what they can afford to use.  Often times, a person will take out a loan in order to pay for something they don’t necessarily need because they have to make sure they always have the coolest new stuff.  This, however, is a good way to accumulate debt.  By using money they don’t have in the bank they are putting themselves in a sort of negative currency.  Now instead of just worrying about basic living expenses, they also have to pay off their debt from the loan.  If that person were to save their money and wait until they had enough money and could afford their fancy new item they would not need to take out the loan thus eliminating debt.  Basically, saving and remaining debt free go hand in hand.  If one saves up their money they will have enough to cover extra items and therefore will not have to go into debt by taking out large loans.  A person who is more careless with their money and doesn’t save will have to take out loans in order to cover extra costs that may come up.