Financial lessons for young adults

1. Debt. There's good debt and bad debt, but people have to earn the privilege of messing around with good debt. It's a rare 20-year-old who can take out a loan to start a business or become a property owner, so one of the best pieces of advice you can give is to avoid credit card debt like the plague. The average person in their early 20s has about 10K in debt, and every dollar owed is one that's not earning interest or doing anything proactive. Again, people typically learn the hard way when it comes to paying interest. If you're able to make your kids understand how bad debt holds a person back, you might save them years of financial struggles.

2. Budgeting. People budget to varying degrees, with some tracking every penny and others dividing their funds into a few general categories. My ideal budget has 10% going to tithes/charity, 10% going to investments, 10-20% going to debt or other savings goals, and the rest covering the many expenses life throws your way. You might not be able to get a college student to commit to this kind of structure right away, but teaching them to keep multiple financial balls in the air will prepare them for long-term success. Otherwise, they'll put all their earnings toward one shiny object and hamstring their spending power in a big way.

3. Investing isn't just for older people. It seems so boring when you're at the end of high school or the beginning of college. Buy stocks instead of going on a ski trip with friends? No way! Meanwhile, if a 19-year-old starts investing $50 a month, that money will keep compounding, without ever bumping the investment amount up from $50 (hopefully the investment amount will go up over time)! The point is, the earlier you start investing, the better!