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The first 5 years of working full time have a big say on where you are likely to be financially for the rest of your life. Having your own money for the 1st time in your life can be a great feeling.  Unfortunately many are unable to adhere to a fundamental money skill of spending less than they earn. Now as we know, when we first start working, our incomes usually aren’t large. For those not living with their parents, the costs of living is daunting ie rent, power, telephone, food, clothing, fuel, car repairs etc. What about entertainment and holidays? The problem with budgeting is we can usually handle the day to day stuff and some of the irregular items however all of a sudden the car registration comes in or your mechanic tells you there is a problem and you are up for $1,000 which you don’t have. How do you pay for that? Then your friends decide you should all go to Bali for a holiday and there goes another $3,000 which you don’t have and also pay rent while you are away! Of course some of your friends live at home. Often paying token board and saving more by spending time at your place using your power and food! As a result at the end of 5 years or so your financial position may look something like this: Assets $ Liabilities $ Car 10,000 Personal Loan 14,000 Clothing 5,000 Credit Card 4,000 Furniture 5,000 Other stuff 4,000 Bank Account 500 Superannuation (retirement fund) 10,000 34,500 18,000 On first glance it looks ok, however this is what was paid for the items. All depreciate in value. Clothes of course are thrown out or sent to the op shop. Furniture and other stuff when sold, only return about 25% of their original purchase price. The only real asset that is readily traded is the car and this depreciates very fast and costs a great deal to operate. In fact when applying for finance, the personal balance sheet may be recorded as follows which notes a truer position: Assets $ Liabilities $ Car 6,000 Personal Loan 14,000 Clothing 1,000 CreditCard 4,000 Furniture 2,500 Other stuff 2,000 Bank Account 500 Superannuation 10,000 22,000 18,000 The reason is the value of the assets is recorded at what they would sell for at the moment. So after 5 years all they have to show for working, is debts of $18,000 for goods that are going down in value and superannuation which can’t be accessed for 40 years. How can you get through those early years and have something to show for it? 
The key is to have an appreciation of money and not just the enjoyment of spending it. If you really value your effort in earning that money and work on getting value when you spend it, you should go alright. After all our goal is to assist people, in developing conscious and successful money habits. Here are ways that our new adults can set themselves up financially for later on in life, and it starts in their teenager years. · From after school, weekend and holiday jobs, ensure a percentage say 50% is put away for a car. This way they have an opportunity to delay borrowing money for as long as they can. · Set strict limits on mobile phone calls. · When they buy their car, research the market to ensure the car is purchased for a realistic price. Use online car sites to assist. · If they are interested in a credit card, make sure they are aware of the pitfalls and have a low limit. A good rule for them would be, if you don’t have the money to pay for it you can’t afford it. Having discipline at a young age will stand them in good stead. · Is there a way to delay them from moving out of home? In some cases the burden of children remaining at home, prevents the parents from maximising retirement savings. It doesn’t have to be all one way. As previously outlined the costs when they move out are very high. If they pay for all their food and phone usage, then both the parents and children benefit. Good Luck
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