55
Section 2.3
Young Adult and Family Finances
Objectives
After you study this section, you will be able to:
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Terms
written roommate agreement
family life cycle
stages in the life cycle
variations in the life cycle
family financial crisis
On Your Own
As you enter the adult world, your money management activities will
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you must handle that were previously taken care of by your parents or
guardians. Managing money well to remain independent becomes the
number one financial challenge.
Often, young adults who are newly independent try to hold down costs by
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or with friends, you may be surprised at the new financial responsibilities
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insurance, car payments, utilities, telephone, and other bills you may be paying
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new meaning and importance. Following the steps for budgeting that were
presented earlier in the chapter can guide you in setting up a budget that will
work for you. Some of the financial tasks you will need to assume include:
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If you choose to live with one or more roommates, you can reduce your
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a good idea to discuss financial and living arrangements in detail so each
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items in the list on the following page.
Certified Financial
Planners
Certified financial
planners have met
certification requirements
issued by the Certified
Financial Planner Board
of Standards. They
assess the financial
needs of clients and
use their knowledge of
investments, tax law, and
insurance to recommend
the most beneficial
financial options for their
clients.