Financial necessities of life are the same for all people, but sadly, few of us possess a complete set. Most people are unaware of the five main necessities:
Protection begins at birth with the personal safety provided by caregivers to ensure food, shelter, healthcare, and a healthy lifestyle for children. Our best chance for living a full, meaningful life includes safeguarding the well-being of young people (and dependent adults), saving for unemployment, and seeking consumer protection.
Skills are the learned abilities of reading, communication, thinking, and performance. Education and experience provide these skills. High school graduates are more likely to find employment than high school dropouts. Trade schools and higher education improve your chance for employment after high school graduation.
Income is the money received as a gift or earned as a reward for work. Either way, income is essential for paying the usual expenses of living and recovering from financial hardship. Use a budget to plan for paying current and future expenses.
Savings are the valuable items we set aside for future use. One example is the use of a food pantry to store food at home in case of a food-shortage in grocery stores. The loss of income due to unemployment or disability is almost certain to happen at sometime during life. Saving money in an insured bank account is strongly recommended for everyone. Investing money to pay for future expenses is also strongly recommended.
Sharing with other people brings personal satisfaction and strengthens your community network.
Copyright © 2020 Douglas R. Knight
Raising Young Investors 