April 9, 2009

Lessons in Personal Finance

These days more than ever are times when personal finance should be taught to young adults, especially if they are leaving home to go to college or just starting out on a new career. Whatever the route taken, personal finance is going to take up a large part of their life from now on.

Yet with such responsibility they are never taught about the basic of personal finance, maybe it is about time that banks got involved in the communities and started this off.

Until then here are some crucial points that everyone should know about:

The difference between “wants” and “needs”
The power of compound interest
How to use credit cards responsibly
How to live within your means
How to plan for the future
Understanding contracts you sign
How to create and maintain a budget
How to protect your assets
How to do your own taxes

Source [Main Street]