People in their early 20s should try to experience as much of the world as they can. They’ve just graduated from high school, and there are opportunities everywhere for them to capture. People in their 20s don’t have the responsibilities of older adults yet, but this also means that society may deem them irrational and reckless.
This means that 20-somethings often don’t have the financial resources to back up their ambitions. Cheap car insurance for male drivers under 25 is hard to find. College students under 25 often have to juggle working while going to school so that they can manage their tuition. There are a lot of hardships while you are young that need more attention.
This doesn’t mean that there aren’t a plethora of financial benefits to being under 25, though. We’ll try to ignore the negatives and reassure you that there is optimism to be had when managing money in your 20s. We’ll talk about the job opportunities, discounts for life insurance, and other options available to everyone under 25.
#1 – Discounts on Insurance
Insurance isn’t a purchase young people think about very often, but there are plenty of reasons why they should. Some types of insurance are uniquely affordable for people under 25, like life insurance.
Life insurance is something that every 20-something should buy if they have other people they are responsible for. This is because young people are at the lowest risk of having to claim their life insurance policy. They are at lower risk of passing away from natural causes, and they don’t develop life-threatening illnesses or succumb to them as often.
Not smoking, avoiding drinking, and getting exercise are also great for young people to get even better life insurance prices. Lifestyle choices are a huge factor in getting better prices on life insurance. If you combine a healthy lifestyle with being youthful, life insurance is very affordable.
Don’t buy life insurance for no reason, though. Life insurance often isn’t a necessary purchase for those who don’t have people they’re responsible for financially.
It has become pretty clear to young drivers that insurance companies view them as a risk to insure. This is because young adults, especially males, are prone to making rash decisions behind the wheel. Things like drunk driving, cellphone usage, and even listening to loud music are bad influences on young drivers under 25.
Young drivers can get unique discounts on their insurance to make up for these risks. Good student discounts are available for young adults who are doing particularly well in their college coursework.
#2 – Taxes Are Simpler
Paying taxes is one of the unfortunate realities of adulthood. The great part about being a taxpayer under 25 is that you don’t have nearly as many assets as older people. As you get deeper into your career, you add a lot of extra wrinkles to your taxes.
Younger people often have lower salaries, therefore their taxes will be lower as well. Depending on what you make yearly, this makes early adulthood one of the main tax-saving times in your life.
Sometimes college students don’t even have to worry about taxes because they aren’t employed yet. Focusing on just school saves a lot of financial worries when taxes are due. This is something that older adults no longer benefit from.
As taxes get more complicated, many people buy a tax program to help them. Some of these packages can cost a pretty penny. Adults under 25 may be able to go to their parents for help on taxes, something that older adults who no longer have their parents miss out on.
#3 – Parents Can Help Out
This is perhaps the biggest benefit of being in your early 20s. This stage of life is almost like a continuation of adolescence for a lot of people. Parents are often willing to let their kids live with them after college as long as they are making progress toward their goals. Young adults who live with their parents often don’t have to buy essentials like food.
If parents are more strict with their children, they may require adult kids to pay them a monthly allowance for necessities, or even a rental fee. No matter what parents ask for, it is still probably going to be cheaper than the enormously high prices on rental properties around the U.S. right now.
Living with parents also makes it easier to take advantage of their medical insurance. Because of the Affordable Care Act, most young adults can stay under their parents’ medical insurance until the age of 25. This is a huge financial relief that every young person should take advantage of.
#4 – Fewer Medical Expenses
A benefit of being young is you don’t have to take advantage of medical care as often. Young people aren’t as likely to have heart attacks, strokes, or other serious health issues. This means that there won’t be as many medical expenses as there are when you get older.
Young folks should try to take advantage of a good diet and exercise regimen so that they can avoid going to the doctor as much as possible. And because many young people have a low income, they may be able to get federally-aided medical insurance like Amerigroup Medicaid.
#5 – More Job Opportunities
Job opportunities for young people seem to be a mixed bag right now. The lack of experience can really hinder people under 25, but employers find a lot of potential in hiring people fresh out of college. Because salaries are lower due to less experience, workers under 25 may be more likely to be hired right now.
Young people just need one opportunity to get their foot in the door, and they’re often eager to help fill a new role for a company in need of affordable help. So even though salaries might be lower for inexperienced 25-year-olds, they have a lot of options to choose from.
These same companies sometimes don’t want to hire an experienced person with more on their resume because they’ll have to pay them more money.
Hopefully, these points have shown that being young comes with just as many benefits as challenges. The world is truly a young adult’s canvas to paint however they choose. They need to take advantage of it before it’s too late.
Shawn Laib writes and researches for the auto insurance comparison site, Insurantly.com. He wants to help young people manage the challenges of making money and saving for their future.