Parents are often encouraged to start teaching their children about money management early in life. However, a major challenge is that many adults themselves lack strong financial literacy.
In fact, a recent survey found that nearly 80% of Americans admit to making financial missteps, such as under-saving for retirement, overspending, or accumulating excessive debt.
“There are many reasons people make financial mistakes,” says Brett King, Managing and Founding Partner, and Senior Vice President of Investments at Elite Financial Associates (www.elitefinancialassociates.com). “But often, it comes down to not having a clear budget or a plan for spending and investing.”
Smart Financial Habits to Build a Stronger Future
King outlines several key strategies to help individuals take control of their finances:
1. Create an Emergency Fund
Unexpected events like medical emergencies or job loss can derail your financial stability. That’s why building a reserve fund is essential. While experts suggest saving enough to cover 3–6 months of expenses, King emphasizes that even small, consistent contributions can make a difference.
2. Start Saving for Retirement Early
Many people delay retirement savings, thinking they’ll start when their income increases. But the earlier you begin, the more you benefit from compound interest. Even modest contributions from each paycheck can grow significantly over time.
3. Adapt Your Financial Plan as Life Changes
Your financial strategy should evolve with your life. For example, becoming a parent might prompt you to start a college savings plan. Regularly reviewing and adjusting your budget ensures it aligns with your current goals and responsibilities.
“If you’re unsure about your financial decisions,” King advises, “consulting a financial advisor can help you build a solid plan and avoid costly mistakes.”
About Brett King
Brett King is the Managing and Founding Partner, and Senior Vice President of Investments at Elite Financial Associates (www.elitefinancialassociates.com). With over 30 years in the financial services industry, he holds multiple licenses, including Series 7, Series 22, and Series 24, as well as insurance and annuity licenses across several states.
