Did you know that your age partially influences your perception and how you use money? Well, neuroscience today focuses on the brain’s changes as one age from birth to death. For instance, a recent study found out that our brain’s processing speed is quickest at the age of 18 and slowly begins to decline henceforth.

It also pointed out that we are able to recall imagery better at 25, but our ability to remember numbers remains constant for another ten years. In other ages, budgeting becomes a challenge as they age.

One of the strangest facts about age is that it changes our perception of money as we age. If you did not know, brace yourself for this article will help you understand better and prepare for the average shifts in mentalities all through your life.

Your perception of money when you are age 17 to 19

At this age, money issues like buying insurance and saving are still relegated to parents. Your mind is more focused on socializing, and what’s happening around you, that concerns your peers. Typically, your money is not for shoes, handbags, new cellphones, or other gadgets –although they may appear once in a while for some –your money here is for hanging out with friends.

Being able to go out on long trips with friends and eating out is what consumes this age group’s money, where clubbing topping the list as the most money guzzling activity.

The fine point

At this young age, we rarely think of the future, and if we do, we often brush it away that we are young and we will begin saving and buying houses when we are a little older. Unless you’re very mature, this is often true.

What is very prudent at this age is to learn how to save up or spend sparingly. You can split the money you’re given by your parents (pocket money) and keep a quarter of it in a bank account and then spend on the rest. Alternatively, you can begin using credit in small amounts, and after some time, you can build your credit score.

Your perception of money when you are at your early 20s (20 to 24)

When we’re younger the word “broke” is very common. That is because the teenager is used to asking for money from parents. However, the early 20s find this word embarrassing as they have realized that is not always about hanging out. The individual has also learned that adults are not supposed to be broke. They are supposed to work hard and earn just like their parents.

The fine point

For college students, they don’t stop their outgoing teenage habits but are more in control than before.  For those leaving college, they feel that they need to work and get money to do all the stuff they want. Surprisingly, most of them have plans on what they want to achieve in terms of jobs and career goals. In simple terms, these individuals have realized that money is essential in their lives and that soon they will not be getting any money from their parents.

What’s essential at this stage is to learn how to say “no” when you cannot afford something in order to save some cash for you when you leave college—develop a thick skin. Financial organization is crucial, particularly for university leavers. Some little savings can go a long way towards settling you before you get your first job.

Your perception of money in your late 20s and early 30s (25 to 32)

This age bracket is when almost all people become serious about money. In truth, they’re being forced by the changing circumstances. They’re either facing a first child, buying a new home, or settling in marriage. All of a sudden, the details of variable property loans and index funds become interesting. Other financial products like balance transfers and endowment insurance plans start making sense.

This is the age of panic and worry. It is where individuals are working hard to fix things up and hopefully make out something beauty out of it, not forgetting that they are still trying to keep up with friends and competing on their achievements. This is the same age where we earn most and get into serious debts at the same time.

The fine point

When we panic, we make hasty decisions like taking loans for weddings, home loans, and other substantial financial items. How do you expect to pay such lump sums of money when you’re still so new in your career? Such mistakes lead to more errors and ultimately frustrations and poverty.

What is most important here is for the individual to plan and have an organized budget on what they want. Learn to keep to the money rule—spend less than you earn. Make serious savings to help you purchase or engage in any financial activity you intend to like the wedding. The rest is just noise.

Your perception of money at your late 30s and your mid-40s

This is the age where most individuals hit their peak earning capacity. It is the same calmer age that has learned a lot about finances in the past few years. They have also learned from their mistakes and have already corrected them. Here, they are probably living or working to get their own homes, the child or children are in school some in their teenage and others almost completing college, and the only worry is their health and retirement particularly those in their mid-40s.

The fine point

This stage is calmer, but the individuals have lots in their minds compared to their younger counterparts. They still have work and families to balance which is not easy in this modern time. They’re too busy even to begin running a new business as a side hustle or contemplate upgrading their courses to gain more skills.

However, if you’re thinking about insurance and retirement, you are still in the right path, but there is a lot you can do during this stage to ensure that your finances and assets are protected for your children’s sake.

Written by Molly Joshi, ZUU Online

This is a guest post by ZUU Online, an Asian-based Finance Education Portal aimed at helping individuals to improve their knowledge on personal finance and money, through educational articles on business, investments, property and insurance.

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