What do you want to be when you grow up? Despite finally hitting 18 years of life, this question still doesn’t have a right answer. But that’s ok, because you’re an adult, and you can do whatever you want!
This is a crazy time in life, where most people have very few things holding them back from pursuing a passion, yet they still feel rushed. A large percentage of people jump right into university with the goal of getting a degree, but they accumulate thousands of dollars of debt in the process. Others dive straight into the workforce, hoping the jumpstart will put them ahead of their peers
To help guide you in this process, Your Managers has laid out the financial implications of each choice, and where it may lead you in the future.
In Canada today, a large number of Canadians are taking the jump to higher education, vying for the rewards that a University Degree can bring, and why not?! Many of the highest paid salaries come with the requirement of a university degree, including doctors, lawyers, professors, engineers, and more. In most provinces, bachelor’s degree students made on average $10,000 more a year compared to their certificate counterparts, and almost $30,000 more than those with only a high school education. Yet those numbers do come with a price, with the average debt load of students leaving university averaging out at $27,929.
Depending on the province, a leap into an apprenticeship can help you achieve salaries equitable to a degree, but with some real help on the debt load side. In Manitoba, Saskatchewan, and Alberta, Stats Canada reported average salaries of equal or higher than bachelor’s degrees, but that doesn’t mean it’s not a good idea elsewhere. All provinces have apprenticeship salaries $10,000 – $20,000 above High School grads. In Canada, 1 in 7 working people have an apprenticeship certificate, with a whopping 93% of those being satisfied with their current job.
Skip the school and jump right into the workforce is the choice of thousands of Canadians every year! Maybe you’re just taking a break, maybe you don’t know what you want to do, or maybe you’re getting ready to start your own business, it doesn’t matter, because there has never been a better time to go straight to work. 41% of university grads are working jobs that don’t require a degree, and many large employers no longer require one just to get your foot in the door (heard of Netflix?!).
“You’ll never get another chance like this”, is usually the advice of your older peers when you float the idea of doing some traveling. A short time in your life where you are willing to forgo expensive hotels, resorts, and parks, for hostels, beaches, and hiking, mostly due to the lack of dependants, debt, and an abundance of energy. While usually accompanied with a brief stay in the former category, travel tends to be a strict exchange of money and time for experiences, and is a great choice for those who are not yet sure of what they want to do with their life.
Still unsure? Not only can the team at Your Managers help guide you through the financials of this exciting time, but we all once went through it ourselves, so you can be sure to get some proper guidance on each of these choices.
You’re finally an adult – welcome to the world of the 2020s, it’s a great time to be alive! That doesn’t mean it all makes sense, and there are lots of options open to you that your parents and grandparents never had. At this rare point in life, you become an adult with little to no debt, dependants, and a significant amount of freedom to make your own decisions.
It’s no surprise that many older individuals wish that they had taken steps at your age to start planning for the future. Here are our top 5 things to do today to help you get ahead in life.
Learn to Read Your Pay Stub
Yes, there are numbers on your pay stub other than what goes into the bank, and they matter! It’s important to understand what your deductions are and why that percentage comes out, so you can have an idea of what is going to come up come tax time. Many other companies include things like a “social club” fee as well, which is something you need to make sure you agreed to when you were hired. You should also understand how your vacation time works; is it paid out each month, or does the company hold onto it?
Sign up for Freebies at Work
Find out what extras your company has included with your employment. For example, many employees are surprised to learn that the company they work for has a “Preferred Pricing” agreement with a variety of auto dealers, which lets you purchase vehicles for just above cost. There may also be discounts at local restaurants, bars, or gyms, and of course, make sure you know how your staff discount/incentive works.
Don’t ever be afraid to ask questions, as it may be a learning opportunity for a manager as well!
Get Your Rain Jacket On
Like putting 10% of your money away, building a rainy day fund is one of those things you always put off until something happens. And when “something” does happen, it’s significantly easier to handle it yourself vs running to the folks.
Fortunately at this age you shouldn’t need much, but the experience of learning how to build your own fund will be worth it as you move on to later stages in life.
Have Fun but Don’t Be Stupid
While having that rainy day fund is important, you are at one of those rare points in life where expenses are low, assets are low, and there are no dependants to be found! There is always the risk of oversaving and experiencing regret, so make sure you take this opportunity to enjoy your new freedom.
The best way to accomplish this is to build your first budget, making sure that the expenses that you do have are covered, so you know how much you can spend at the pub with your friends.
Hope is Not A Strategy
Wants, dreams, hopes, and goals are all a huge part of the journey into adulthood. No matter what your plan, or lack thereof, you most likely have a want or a desire.
So live it, build it, and plan it.
Because as the years go by, you will realize that what you want requires work, commitment, and effort. Now is the best time to write down what you want, and figure out what it’s going to cost to get there, in terms of both time and money. If this is a habit you can create now, everything will fall into place much more easily.
Looking for assistance in navigating your options? email our team and we will show you how you can get started.