Finance for the Youth

1263 Words3 Pages

In a Business Week article, Mr. Ben Steverman discuses issues facing today’s youth. The article is titles “Advice for Young Investors.” The article discuses two individuals who are 22 years of age, both are just beginning their careers. One individual is attempting to pay off student loans quickly and then save money to travel. The other individual is attempting to purchase real estate and invest within the market. Mr. Steverman discusses ten important factors for which young investors need to consider when approaching the market.

The first subject is the matter of cash, cash, and cash. Mr. Steverman states that individuals need to have readable access to a relatively large proportion of cash. It is recommended that young individual have access to ten thousand dollars worth of cash. However in today’s market it is recommended that individuals have readable access to an amount of cash that is in the range of fifteen to twenty thousand dollars. The need for readable access to cash is for the possibility that you may lose your job. The main reason of the readable cash is so that if an individual needs the cash for an emergency the individual will be able to access it at their own bank. This cash can be used for a wide array of things in the case of an emergency. If an individual losses their job, they will need to pay bills and purchase food. The amount of the money may differ if the individual is engaged into a family, as the family will have higher bills and needs for money.

Secondly is the need for sufficient insurance. If you become disabled, disability insurance will cover your living expenses in the event that you become disabled. As today’s youth is more concerned with what is taking place in today and tomorrow, they are...

... middle of paper ...

...it is most recommended to take full advantage of that opportunity.

While it is very important for young individuals to start to save and invest for their retirement, there are aspects that they should consider before jumping into investing into securities. Those subjects are cash, enough insurance, should you buy a home, how secure is your job, how much risk can you handle, equities are risky, get started, do everything, be flexible, and can you save and invest too much. These ten aspects should be looked at, analyzed, and taken into very critical thought before saving and investing into securities.

Works Cited

Steverman, Ben. "Advice for Young Investors - BusinessWeek." BusinessWeek - Business News, Stock

Market & Financial Advice. 7 Apr. 2009

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