Financial experts give tips on how parents can help young adults save hard-earned money
Michelle Charlesworth offers advice to young adults on saving money while staying at home.
Some of the financial decisions you make in your 20s will probably be questionable, while others are smart, but you need a successful plan in saving and maximizing your hard-earned cash.
“There is no shame in bringing home a hard work paycheck,” Personal Finance Expert Farnoosh Torabi said.
Torabi noted that staying at home can be either beneficial or detrimental, urging people to make it work. She recommends calculating backwards and budgeting for $2,000 monthly rent once you move out, assuming a roommate shares the cost.
“So $2,000 a month, you don’t have to have all the months saved up but you want at least the first month and a safety deposit which is usually a month and a half so that’s $4,000 to $5,000 right there, just to have a place… of course you need a job too,” Torabi said.
She also advises having a safety net equal to at least three months’ wages.
“I would recommend having two to three months of your bare-bones living expenses shored up, tucked away so lets say that’s another $6,000 or $7,000, and you’re looking at, collectively, $10,000 to $15,000 to feel comfortable enough to go out there,” Torabi said.
Neglecting to plan essentially sets you up for failure.
And it’s achievable! Eyewitness News interviewed a 26‑year‑old resident of Montclair who holds a full‑time position along with eight side gigs.
“I’m a full-time artist, comedian, actress, singer, and on top of that to supplement rent, I do bartending, serving, I teach Sunday school, a run youth program, and help out at elementary schools,” Sierra Joy said.
Joy also dog‑sits, lives with three male roommates, and pays $1,100 in rent.
Here’s some guidance for parents of twenty‑something children—consider these tips.
Michelle Charlesworth’s complete report is available in the media player above and contains further advice for parents of twenty‑year‑old children.
