My blogging friend JD Roth (at Get Rich Slowly) offers some advice to an 18 y.o. who asks:
Are there any other resources you would recommend to a financially clueless 18 year-old?
JD gives some of his usual good advice:
Maybe it’s because of my own experience racking up debt during college, but I think it’s important for young adults to learn the fundamental law of personal finance: To build wealth, you must spend less than you earn. There’s more to it than that, of course. The less you spend, the more flexibility you have.
… but, I really want to be able to tell this kid:
After teaching ‘kids’ to save some / spend some (to understand that there needs to be a balance), and all those other wonderful things that JD suggests in his post, I would strongly advise any young reader to get some ‘business experience’ on the side.
Fortunately, with the internet, that is SO easy these days:
1. Start a ‘for money’ blog. Stuck for a topic?
Try this: write a blog aimed at other high school / college kids chronicling your attempts to improve your own financial situation … worst case, it could read as comedy.
2. Sell stuff on eBay; even better, find stuff in China and then sell it on eBay.
Try not to get ripped off AND make a profit. Write about it on your blog … it will DEFINITELY be funny!
3. Start a web-site selling anything; OK it may not make money (or, it COULD become the next Facebook), but you will learn heaps.
Better yet; try all three!
What financial advice would YOU like to give this 18 year old?
Start investing. that’s it.
Adrian, your right on with the start something online for this 18 year old. But I would add, find something your passionate about.With younger kids like that, it could be something like Skate boarding.teach an online course about skate boarding,later,maybe add selling skate boards designed for competition or something like that.He could even have skate board repair on the side. Who Knows,but it should be something he is really passionate about.
Right now, I am trying to encourage my Grandson to build on his knowledge of T.V. and movie production. It can be quite helpful for an online business or even a brick and mortar business. He seems quite interested in this sort of thing. He is young,About 13 now,and if he develops this passion no telling where it could lead in just a couple years.
no telling what he might teach an ole dog like me about movie production 🙂
go to College, develop social and networking hobbies. Start a business whilein school
That’s it for now
discount sherry is a cheap primer. also, you can rep. for a beer company, and that should both cut your costs and help you with ‘social networking’. in no way does the difficulty of the program equal post-graduate pay-out. stay away from anything that takes more than about 14 hours of work a week. maybe do a trade or business school, geology, or something even easier. don’t waste money on stupid stuff but have as much fun as possible.
@ Money Monk – great advice … and, much more ‘word economic’ than mine. Thanks!
@ Illiquidity – it was something called ‘Brandivino’ for me … you mixed a whole bottle of that cheap rocket-fuel into the balance of a two liter bottle of coke. Cheap mother-of-all-hangovers!