Chicago — As more young adults choose to live at home with their parents in the aftermath of the COVID-19 pandemic’s economic impact, many are using what they are saving on designer handbags and expensive jewelry.
According to Yahoo Finance, they are helping to drive a boom in the luxury goods industry with their discretionary spending. Instead of splurging on those items, financial experts recommend young adults use their time living with parents to work toward financial independence.
Here are three ways to do it:
Don’t buy now and pay later
If you don’t have much money in the bank, don’t rely on buy, now pay later options in order to avoid debt.
While some of those plans come with zero interest or late fees, the charges add up when a payment is missed. Try working on a plan to pay off your existing debt and prioritize paying bills in full, on time or consolidating loans into one if you can’t keep up with them.
Hold off on the Shein hauls
While retailers like Shein and Boohoo offer cheap items that seem like a steal, they add up. Adding unnecessary pieces to your cart can be bad for both the environment and your wallet. Your money could be better spent elsewhere like in the stock market, even if it's just a few dollars being contributed.
Start saving now
Put aside some spare cash to eventually be able to move out of your parents house. Try putting together a savings plan that you can stick to based on how much you can afford in your chosen location. Keep in mind the money you’ll need to support your monthly living expenses like rent, mortgage payments, utilities and other essentials like emergencies.