Loans are a way to get by during tough times in your life. Borrowing should not be a lifestyle, however. In a place like Provo, where plenty of families are young, inexperienced, and therefore live below poverty lines, it may seem tough to get out of a borrowing cycle.
The facts may sound daunting at first, but know that half of Provo’s impoverished are in college or going to graduate school. This means that their life of debt is not permanent; it’s transitional, and they can start getting a better job to pay for their loans after graduation. Some of them even have a full-time job to pay for their basic expenses and save as early as now. Though parents could help give them a start through title loans, repayment will not be a problem if both parent and child commit to a better plan for their future.
Helping as Needed
With the young population in Provo, and overall in Utah, it cannot be denied that more people are earning less. This is because they do not have much working experience yet–a hurdle that they can only get through by working harder. Another thing that cannot be denied is that parents are helping children with loans to their name as much as they can.
A young adult on his first job may feel guilty about such loans and want to repay their parents as early as possible, but experts say this should not be done if it will compromise your own savings for the future. A columnist for NerdWallet suggests looking for signs that parents are cutting back on their basic expenses, such as heating and eating healthy. That is when you are expected to swoop in and offer a lending hand.
Young adults have a long way to go when it comes to building financial freedom. To get there, you need to know where your money is going and why.