Nearly 50% of individuals in the European Union live paycheck-to-paycheck, which significantly blocks their ability to save or handle unexpected expenses.

International Youth Day is a global celebration of the potential of young people, making it an ideal time to reflect on the importance of financial literacy and planning for young adults. At FinKratt, we are dedicated to empowering you with the knowledge and tools necessary to defeat financial stress, escape the paycheck-to-paycheck cycle, and achieve long-term financial stability.

The Financial Landscape for Young Adults

Nearly 50% of individuals in the European Union live paycheck-to-paycheck, which significantly blocks their ability to save or handle unexpected expenses. This challenge is especially prevalent among young adults who are just beginning their financial journeys and managing significant obligations such as student loans and housing costs. According to the European Commission’s Financial Competence Framework, financial literacy is vital for making informed decisions about budgeting, saving, investing, and managing debt, all of which are needed in today’s financial environment​.

Across the pond, the U.S. Treasury also underscores the importance of financial literacy as a national strategy, advocating for educational programs that equip individuals with the necessary financial skills from a young age. This approach aims to improve financial decision-making and overall financial well-being, which is fundamental for achieving long-term economic security​.

FinKratt’s Approach to Financial Empowerment

At FinKratt, we go beyond traditional budgeting to offer a personalised and strategic approach to financial planning. Here’s how our platform can help you take control of your finances:

1. Personalised Roadmaps

Our primary focus is helping you achieve financial security by building an emergency fund and, most importantly, eliminating debt. We understand that debt can be a significant burden, holding you back from financial growth. That’s why FinKratt offers the best available strategies, such as the Snowball and Avalanche methods, to help you systematically reduce and eventually eliminate your debt. But we don’t stop there—our ultimate goal is to prepare you for financial growth. As we continue to evolve, we plan to expand our personalised roadmaps to tailor them even further to your unique financial goals, ensuring your financial journey is not only secure but also empowering and growth-oriented.

2. Cash-Flow Management

Rather than focusing on restrictive budgets, FinKratt emphasises effective cash-flow management. By guiding you in managing the flow of money in and out, we help you maintain financial stability and flexibility. The Consumer Financial Protection Bureau (CFPB) emphasises that developing strong savings habits can protect you from financial shocks and reduce stress—FinKratt’s approach ensures you have the cash flow to build those habits​.

3. Real-Time Feedback

Knowing how well you’re managing your finances is crucial. FinKratt provides real-time feedback, comparing your financial data with peers to give you a clear understanding of your progress. This insight not only helps you stay on track but also allows you to assess your earnings and potential. By understanding where you stand, you can better position yourself to negotiate a raise or explore opportunities to maximise your income.

4. Financial Companionship

Navigating your financial journey can be daunting, but you don’t have to do it alone. FinKratt offers financial companionship—we plan to be a supportive guide that stays with you every step of the way. Whether you’re building an emergency fund, eliminating debt, or increasing your income, we provide the encouragement and assistance you need to succeed. As the Federal Deposit Insurance Corporation (FDIC) highlights, managing your finances effectively is key to avoiding long-term financial strain—FinKratt’s companionship ensures you’re never navigating these challenges alone​.

Join the FinKratt Waitlist

FinKratt is designed to be more than just a financial tool; it’s your digital companion in achieving financial independence. While our application is not live yet, you can join our waitlist to be among the first to experience this innovative platform.

Inspired by the mythological Kratt—a creature designed to amass wealth for its creator—FinKratt is here to help you take control of your finances with confidence. By following our strategic roadmap, you can break free from the paycheck-to-paycheck cycle and start building a prosperous future.

Ready to Take Control?

This International Youth Day, commit to your financial empowerment. Join the FinKratt waitlist and start your journey towards getting rid of financial stress today. In the meantime, for more insights and resources, explore the European Commission’s Financial Competence Framework and the IMF’s youth-focused financial resources, both available in our references below.

References:

1. European Commission, ‘Financial Competence Framework for Children and Youth‘ (2023) <https://finance.ec.europa.eu/system/files/2023-09/230927-financial-competence-framework-children-youth_en.pdf> Accessed 12 August, 2024.
2. International Monetary Fund (IMF), ‘Youth Financial Resources‘ (2023) <https://www.imf.org/en/About/Partners/Youth> Accessed 12 August, 2024.
3. US Department of the Treasury, ‘National Strategy for Financial Literacy‘ (2020) <https://home.treasury.gov/system/files/136/US-National-Strategy-Financial-Literacy-2020.pdf> Accessed 12 August, 2024.
4. Federal Deposit Insurance Corporation (FDIC), ‘Money Smart for Young Adults‘ (2022) <https://www.fdic.gov/resources/consumers/money-smart/> Accessed 12 August, 2024.
5. Consumer Financial Protection Bureau, ‘Youth Financial Education‘ (2023) <https://www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/> Accessed 12 August, 2024.