Student debts have already risen to alarming levels, leaving a negative impact on the American economy and lifestyle. Statistics reveal that the amount has scaled past $1.72 trillion. It is not possible to make an individual difference, but a conscious effort towards financial planning education is a feasible solution.
Early Financial Planning
HashCash CEO and blockchain pioneer Raj Chowdhury explains, ”Global pandemic resulted in mass unemployment and losses worth billions. The time is ripe to look back on newly available options and enact smart decisions based on sound financial planning.”
Upon structured observation, 4 out of 10 Americans have $300 or less in savings, while 21% do not maintain an emergency fund. It is not possible to understand the asset status, or set effective wealth growth strategies for the future without financial education. A good success story of financial literacy is the young age demographic of successful crypto investors or traders.
School Finance Literacy Programs
In retrospect, the absence of school financial literacy programs is a deterrent to the financial well-being of American students. Over 40% of the student population fail to make timely repayments. More than half of the applicants do not even make an effort to find out student loan repayment options beforehand. Accumulated student loans have a significant contribution behind millennials not purchasing homes, as well as low credit scores, property seizure, and reduced net worth.
An early foray into financial education will guide the upcoming American generation towards progress, with greater financial responsibility. It will also increase their chances of making better investments in equity stocks, forex, commodities, or the latest in line- crypto trading.
Crypto Investment Trends Among Youngsters
“The entire world is catching up on the merits of blockchain-powered cryptocurrencies that provide viable solutions to finance issues. The concept of work rewards and high yields appeal to the idealistic youth pushing forward crypto trading on a global scale,” mentioned Chowdhury.
Studies revealed a 55% likelihood of buying bitcoin among US citizens between ages 18 and 34. Crypto adoption will rise further with the fluctuation of fiat currency valuations and an increase in global blockchain utilization.
Better Retirement Schemes with Financial Planning
Early financial planning leaves better choices for pension, as well as retirement funds. The global shift from “defined benefits” towards “defined contribution” pension plans lays down extra complications for individuals. The solution requires starting pension contributions at an earlier age. Thus, a person beginning pension savings at 25 will be in a much better position than one starting at 35.
Effective financial planning is the way out of debt entrapment and monetary difficulties. Like all things easier said than done, the task comprises several steps that must be completed in order to make an impact. However, the foundational pillars remain the same- financial literacy, research, and patience.