Some people learn good financial habits early, but let’s face it...the closest most of us come to budgeting while we’re in college is figuring out how long we’ll have to live on microwaved burritos and ramen noodles to afford jeans that aren't from Forever 21. After graduation, though, money starts to feel a little more real, and the list of things you need to spend it on probably gets a lot longer.
Your Budding Budgeting Skills
You updated your resumé to reflect that hard-earned degree, you hustled hard to get interviews, and you just snagged your first grown-up job. Maybe after blowing a paycheck or two on all the cool stuff you couldn't afford before, you get the good judgment itch and start thinking about a monthly budget. Yay, you! But what exactly are you budgeting FOR?
Here are a few things you’ve probably thought of:
- Rent (or mortgage if you’ve already reached homebuyer status)
- Transportation (car payments/insurance/gas and/or public transit/Uber/taxis)
- Groceries/household items
- Cable (and/or Netflix, Hulu, and all the other “unplugged” options)
- Entertainment (eating out, movies, concerts, etc.)
Here’s something you might have forgotten, though: life insurance.
Life Insurance NOW? Seriously?
Yeah, we know. The last thing you want is another expense. When your stack of bills seems to be growing faster than your stack of cash, it’s easy to talk yourself out of things like an insurance policy that isn’t legally mandated.
We tend to think of life insurance as something we don’t really need until we get married or have kids, but here’s the thing: even before we have our own families to protect, someone else you love will most likely be financially affected by your death. Usually someone you care about a lot, like your parents.
A Degree with a Side of Debt
If you’re like the majority of college-educated Americans, you graduated with significant school loan debt. It’s easy to rack up quite a tab for your education, and unless 100% of your debt is made up of federal loans, it won’t disappear if you pass away. For many young adults, the desire to protect their parents and other loved ones from the burden of student loans is the most compelling reason for buying life insurance.
The Final Farewell Party
Even if you’re lucky enough to have made it through school with little or no debt, funeral expenses alone can be a huge financial hit to most families. Even the most minimal options can cost several thousands of dollars, with the average cost for a traditional funeral with a memorial service and burial coming in at $7,181.
While we’re on the subject of funerals (because why not get it all out of the way at once), end-of-life planning is something you should probably discuss with your family. It’s not the warmest and fuzziest conversation, but next time you go to your parents’ house for Sunday dinner, you might want to at least casually mention your final wishes.
Then you can get back to complimenting your mom on the ketchupy-ness of the meatloaf, explaining the difference between Facebook and email to your dad, and sneaking bites of said meatloaf to the dog when no one is looking. Business as usual.
If buying life insurance when you feel like your life is really just getting started still sounds crazy, keep this in mind: the younger and healthier you are when you buy it, the lower your premiums tend to be. Since rates are generally locked in for the duration of your policy, finding coverage now is a good decision that you can really get some mileage out of.
If you’re not sure you have room in your budget for life insurance, take a hard look at other things you might be wasting your money on. Keep in mind as well that it might be less expensive than you think to find quality coverage. 8 out of 10 people overestimate how much life insurance will cost, so a little research could leave you pleasantly surprised.
We’re Here for You
Our Life CoveredSM is here to help you shake the feeling that life insurance is too depressing to talk about. We make planning for the worst as painless as possible so you have more time to manifest the best.
When you’re ready to learn more, visit us or give us a call at 888-828-9760.