Common Mistake Make By Youth In Financial Budgeting

1. PLANNING JUST FOR TODAY: Plan for the future. You may think planning for the future is only for people thinking about retirement, but everyone can benefit from financial advice. Speaking to a financial advisor or financial services manager can help you figure out what you need to do to afford your dreams. Also, don't forget to check in when major life changes occur, as your financial priorities will probably shift too.

2. NOT PLANNING FOR EMERGENCIES: Youth are adventurous, often taking risks in the belief that everything will work out fine.

Experts say many youth do not bother to make plans for emergencies. Some will use up their savings and even borrow cash to finance the purchase of a car without thinking about maintenance, insurance. Some do not even think they are capable of having a health emergency. These sorts of people are likely to say things like, “If not for that accident, I was coasting financially.” In order to avoid such outcomes, experts advise that people should have emergency funds. So, apart from just saving for a car, wedding or marriage, it is important to have and emergency fund. You never know.

3. DISREGARDING DETAILS: According to experts many youth do not bother with vital financial details because they deem them too little. Many youth do not scrutinize their bills or keep them. They do not review them to know whether they are being short changed or not. When they use financial services they do not bother about interest or service charges. The truth is that by ignoring these details, they are likely to, and often, lose thousands of naira – in SMS charges, transfer charges, etc. If you spend N300 naira every day just to go and purchase an item worth N200, you will be better off subscribing for the item. Remember, that it may even give you a discount.

4. NOT TAKING CARE OF THEIR HEATH: Many youth fail to realize that their health can deteriorate over time. Experts say they assume that they will remain strong and healthy. Consequently, as older people avoid the rain and the sun, as they go for regular checkups and go for health insurance, youth sustain risky behavior health-wise. This leads to health problems and loss of huge sums of money on treatment or medication.

5. CHOOSING LIABILITIES OVER ASSETS: According to experts, this is one of the most common mistakes youth make. They explain that they have a tendency to chase trend and to obtain the latest gadgets and the likes, regardless of whether they need the items or not; whether they will achieve financial growth by obtaining them or not. Experts, however, warn that many of these objects, being liabilities, cannot help users to grow their assets.

6. IGNORING DISCOUNTS: To some youth, buying on discount makes you cheap. Some even avoid outlets advertising discount offerings; they don't want to be seen as cheap. But experts say while peer pressure has led many youth to consider discounts as an option for poor or cheap people, those who take advantage of discounts are in reality financially smart.