Inflation Concerns | Ages 18-24

Inflation is a word that has been making its way into many 2023 conversations, and as young adults, it's essential to understand its impact on your financial well-being. Inflation refers to the general price increase over time, which means your hard-earned money may not go as far as it used to. Aventa wants to share different ways inflation may affect various aspects of your life.

Cost of Living:

One effect of inflation is the rising cost of living. As prices increase, everyday expenses such as rent, groceries, transportation, and healthcare become more expensive. Adjusting your budget and prioritizing your spending to cover essential needs is crucial. Look for ways to reduce costs, such as cooking meals at home, using public transportation, and considering getting a roommate to share costs with. Being mindful of your spending habits can help you avoid the rising cost of living.

College Necessities:

As a student, inflation can significantly impact the cost of college necessities. Tuition, fees, textbooks, and housing expenses have increased, making it challenging to attend college. Explore options like scholarships, grants, and part-time jobs to manage these costs. Also, feel free to buy used textbooks and utilize online resources for supplemental learning materials. Being resourceful can help you manage the escalating expenses associated with your college journey.

Debt Due to Education:

Inflation can increase students' overall educational debt. As education costs rise, many students may be required to take out loans to fund their studies. It's important to be mindful of the implications of student loans and borrowing responsibilities. Not all financial institutions' terms and conditions are the same-be sure to read the fine print and details to know what you're signing up for. Explore options, such as grants or work-study programs, and consider attending community college or vocational schools before transferring to a four-year institution. Sometimes community colleges provide a more affordable option and will help you get core classes out of the way.

Impaired Savings:

Inflation can hinder your ability to save for future goals. As prices rise, your purchasing power decreases, making saving money difficult. However, it's crucial to prioritize saving, even a small amount. Start by creating a budget that includes a savings component and automate your savings by setting up direct deposits into a separate account. Consider exploring investment options to help your savings grow faster than inflation. You can build a solid financial foundation by developing good saving habits early on.

Financial Freedom/Planning:

Financial freedom may seem impossible with recent inflationary pressures, but it's doable. Start by creating a financial plan that aligns with your long-term goals. Set achievable milestones and set aside funds for emergencies, retirement, and investments. Educate yourself about personal finance topics like, budgeting, investing, and debt management.

Everyday Necessities:

Inflation impacts the prices of everyday necessities such as food, clothing, and utilities. To combat rising costs, consider adopting thrifty habits such as shopping during sales, using coupons or discount apps, and buying in bulk when possible. Determining between wants and needs is essential to avoid overspending on non-essential items. By making conscious purchasing decisions, you can adapt to the changing prices while staying within your means.

Inflation is a reality that impacts everyone, but understanding its implications and taking proactive steps can help you navigate its challenges. By being aware of the rising cost of living, finding ways to manage college expenses, being mindful of student debt, saving strategically, planning for financial freedom, and adopting smart spending habits, you can set yourself up for a financially secure future.