2020’s Adulting Wakeup Call
On social media, #adulting is the tagline beneath a stack of bills displayed next to the perfect latte on Instagram for all to see. It’s the phone calls to insurance companies comparing rates and options. And it’s the tough lessons learned about credit, debt, and budgeting.
For those unfamiliar with the new language of cool, “adulting” is what we’ve all been doing since we first flew the coop. In other words, financial independence.
One short year ago, adulting was the ambition of every almost-college-grad dreaming of their first paycheck, their first place, and their first splurge. What a different a year makes. This year, many have found #adulting redefined as applications for unemployment, phone calls to the landlord asking for rent deferrals, and quarantining in an apartment full of IKEA furniture.
But even for those whose plans weren’t upended by COVID, adulting comes with its own share of harsh wakeup calls. The good news? We have the resources you need to speak into each and every one.
Adulting Wakeup Call #1: Your First Paycheck
When your teen gets their first job, chances are their money math will be simple. Perhaps they hear that they’ll be making $12 per hour. Multiply that by 3 hours per evening and 5 days per week, and they’ll see that soon, they’ll be raking in $180 per week. With that kind of dough, they’re ready to hit the movies every Saturday and add guac to their burrito orders without giving it a second thought. Not so fast. Such expectations will put you in a sour mood, like this first-time employee:
As any adult knows, your first paycheck comes with a wide range of deductions. Social security, federal income tax, and state income tax are nothing to sneeze at. And they can make any paycheck magically shrink in no time. Want to give your teen a heads up? Our episode, Understanding Your First Paycheck, is just what the doctor ordered.
Adulting Wakeup Call #2: The Big Price Tags of Big Purchases
Perhaps it’s a bright pink VW Beetle, or a neon green Tesla Model 3. Or, perhaps it’s as simple as a new pair of high-tops. Whatever your child’s big-ticket ambition, their first big purchase can be a big lesson. From sales tax to rapid depreciation, big purchases can come with big regrets. One rule of thumb? Sleep on it. And sleep on it. And sleep on it. If you’re still interested in a big-ticket item, see if there’s a way to try it out for a short period of time. If you think you want to buy a car, test drive it first. After that, ask if you can rent it for the weekend. If it’s a new pair of shoes, buy from a store that accepts returns if the fit isn’t right. Lastly, negotiate, negotiate, negotiate. Don’t think that a sticker price is set in stone. The smartest business people around all agree: “everything is negotiable.” Or be like Kyle, who was able to trade maintenance services for flying time:
And most importantly of all, make sure you watch Biz Kid$ episode, Your First Big Purchase, before you make any big transactions.
Adulting Wakeup Call #3: Living on Your Own
For many, it’s the dream of all dreams: moving out. Well, moving out can cost a lot more than it appears. Today, a quick rundown on the real costs associated with making the leap to grown up living.
First, the move itself can cost an arm and a leg. Many apartments require that renters pay their first and last months’ rent before they ever step foot inside their new home. That can be pricey! And rent isn’t the only thing to consider. When you move out, you’ll also need:
Furniture
Bed
Mattress
Kitchen Supplies (you’ve gotta’ eat, you know!)
Then, every month, you’ll have to pay rent plus a lot of other bills, too. Those include:
Electricity
Water & Sewage (yes, you pay for your trash.)
Internet
Cable TV
Renter’s Insurance (your apartment might require it.)
Want to get specific? Here’s a budget calculator from our friends at the Mint. Want to soften the blow of moving out? Consider living with friends. Sharing expenses can make it much more affordable. These girls shared a house with 7 friends, making their monthly expenses achievable in the expensive city of Seattle:
#Adulting can come with many surprises, but Biz Kid$ is here to help every step of the way. Check out our Adulting learning pillar today at the NEW BizKids.com
