2.2 Is financial planning important?

Financial planning usually requires the following.

Clear financial goals.

Accurate and timely budgeting.

Appropriate savings and investment strategies.

A sensible retirement plan.

As you move into your professional lives, you should start thinking about preparing a careful financial plan.

However, as a young adult, it is unlikely that you will prepare an elaborate financial plan with detailed investment and retirement long-term financial goals.

Still, getting into the habit of simple financial planning early could be beneficial for the following reasons.

Click on each number to learn more.

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Something to talk about – does financial education work?

Do you think financial education makes a difference to financial behaviour of young people?

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A study by the Money and Pension Service (MaPS) suggests that young people who receive financial education “feel more confident about managing their money” and “save money more regularly” than those who do not (MaPS, 2023).

If you'd like to learn more, this is the study: UK Children and Young People’s Financial Wellbeing Survey: Financial Foundations | Money and Pensions Service [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] .

2.1 Earning money

2.3 How do I start financial planning?