Mistakes in our youth are normal and forgivable, but financial ones can be nasty to fix.

Young consumers are still missing the basics, experts say. Budgeting, saving, planning for emergencies, using credit cards correctly B次元官网网址� advisers are seeing young clients who struggle to grasp the fundamental principles.

It seems Canadians in general arenB次元官网网址檛 in touch with this reality. A recent RBC poll found 75 per cent of respondents said they have good financial habits, and 62 per cent even rated themselves B次元官网网址渁bove averageB次元官网网址� compared with friends and family. But when asked about those actual habits, more than a third admitted they did not monitor expenses or set financial goals.

Barbara Knoblach sees the results of ignoring expenses and not having goals.

The financial planner with Money Coaches Canada had one client in their mid-20s who seemingly had his life on track B次元官网网址� finished school, well-paying job, relatively new car, living on his own. But his finances were a mess. His credit card was nearly maxed out at $20,000 and he struggled to make rent.

Then, a disaster: he was at-fault in a collision, totalled his vehicle, but needed a car for his job. His family bailed him out because he had no savings and no credit left.

B次元官网网址淭he experience was a wake-up call that he needed to change his financial behaviour,B次元官网网址� Knoblach said.

This clientB次元官网网址檚 credit card statement was B次元官网网址渞outinely spanning several pagesB次元官网网址� with many small purchases, mostly for food, she said. He had no idea how much it added up every month.

Knoblach corrected his course: watching expenses, taking cooking classes, making his own meals, paying down his credit card balance, starting to save.

But his case epitomized the top three mistakes she sees with young consumers B次元官网网址� ignoring their spending, especially with smaller, frequent purchases; accumulating debt; and forgetting to save, which means a financial setback can be crippling.

B次元官网网址淣ot keeping track of finances can be likened to driving in winter with an iced-over windshield B次元官网网址� you donB次元官网网址檛 know where youB次元官网网址檙e headed,B次元官网网址� Knoblach said.

B次元官网网址淪tarting to save early has numerous benefits, the most important being the ability to consistently live below oneB次元官网网址檚 means.B次元官网网址�

Kate Childerhose sees similar situations as a financial adviser with Edward Jones. She remembers one piece of advice she took from her entrepreneurial father: B次元官网网址淣o one is ever going to take care of you like you.B次元官网网址�

Young people arenB次元官网网址檛 saving, she said, theyB次元官网网址檙e forgetting to put money aside for themselves.

Her retiring clients are now facing the consequences from choices in their youth in their twilight years, Childerhose said B次元官网网址� after putting all their money into a house and not saving for retirement, theyB次元官网网址檙e actually going to lose the house. These clients donB次元官网网址檛 even have enough cash to carry basic costs such as property taxes and utilities.

B次元官网网址淵ou need to prioritize your debt, but you also need to take a little bit of that money every month and start some savings for yourself,B次元官网网址� Childerhose said. B次元官网网址淵ou need to do both.B次元官网网址�

Even with massive student loans from advanced degrees and doctorates, young people still need to pay themselves. Relying on credit cards to fill gaps means theyB次元官网网址檙e dealing with crushing interest.

B次元官网网址淲hen they take all their available cash and pay the debt off, thatB次元官网网址檚 when the credit card accidents happen, because we donB次元官网网址檛 have a plan B, we have nothing to fall back on,B次元官网网址� Childerhose said.

Young consumers should not carry credit card balances from month to month, she said B次元官网网址� they should make purchases within their budget and pay it off promptly.

B次元官网网址淚B次元官网网址檝e sat down with young couples and I started asking questions about debt, and theyB次元官网网址檝e got three or four credit cards, and theyB次元官网网址檙e carrying balances on all of them,B次元官网网址� she added. B次元官网网址淎nd the (interest) rate, IB次元官网网址檝e seen anywhere from 15 to 30 per cent, depending on the card. Like, thatB次元官网网址檚 never going to get paid off, right?B次元官网网址�

An unsecured line of credit would be a better option than a credit card for emergencies when you donB次元官网网址檛 have enough savings built up because the interest rates are lower, Childerhose said.

As for solutions, there are free or affordable resources everywhere, Knoblach said, including books, library courses, non-profit credit counselling services and budgeting workshops. Financial planners and coaches can provide tailored advice.

Young consumers are in a growth phase, she pointed out, which can be costly. And peer pressure to maintain a lifestyle may encourage poor financial habits.

B次元官网网址淵oung people tend to work in entry-level positions with limited discretionary income, yet they may take on substantial debt, such as student loans or car loans, to build their lives,B次元官网网址� Knoblach said.

B次元官网网址淪urrounding yourself with individuals who manage their money wisely can help improve your own financial habits over time. As the saying goes, B次元官网网址楤irds of a feather flock together.B次元官网网址橞次元官网网址�