Financial stability might seem like a trivial concern, but it’s more important than you think. Imagine living debt-free or having the freedom to retire early and travel the world—all because of wise financial decisions. In honour of this year’s Financial Awareness Day, here are some essential tips for Gen Z, teens, and young adults to achieve financial security:
1. Establish a Budget: Whether you’re living with parents, relatives, or on your own, creating a budget is crucial. For those lucky ones staying with family, expenses are typically lower, allowing more opportunities to save. However, if you’re living in a hostel or independently, allocate your budget for essentials like rent, food, entertainment, and educational costs. A clear budget helps you manage your finances effectively and avoid unnecessary expenses.
2. Cook Instead of Eating Out: If you’re living alone, learning to cook is a game-changer. While groceries may seem pricier upfront than buying a meal from a restaurant, the long-term savings are significant. For example, a 5kg bag of rice might cost 20Dhs, the same as a single meal, but that rice could last you 3-4 months. Although, that being said, be mindful of the shelf life of groceries to avoid waste, but overall, cooking at home is a more economical choice.
3. Compare and Contrast Prices: It’s easy to buy groceries from the store downstairs, but taking the time to compare prices with the one five minutes away, can lead to substantial savings. You may find it inconvenient, especially when it’s just for 1-2dhs but over time, you’ll realize that you’ve saved a considerable amount just by doing this.
4. Use Coupons: Don’t be shy and undermine the value of coupons and discounts. Whether it’s using Carrefour coupons from the back of your receipt or food stamps in some countries, these savings add up. Over time, you’ll notice that these small efforts can significantly reduce your overall spending.
5. Emergency Fund: Apart from your regular savings, set aside money each month for an emergency fund. This fund, which could be as simple as cash in a piggy bank, is vital in situations where electronic payments fail. The recent Cloudstrike incident in July 2024 highlighted the importance of having cash on hand. An emergency fund ensures you’re prepared for unexpected situations.
