Welcome Back, Gen Z (+ other!) Planners – We are finally purchasing our first big assets or receiving big holiday gifts from family! This is so exciting, but how do we protect them in the long run?
Buying yout first car or signing a lease for your first apartment is not easy. It is our first big “milestone” into adulthood. It is crucial that we protect these items at the beginning so we do not have to fear of losing them later on in life.
Insuring What You Own: Homes and Vehicles
So many people skip out on insurance when they are young because they believe that it is too expensive and unnecessary.
However, these policies are often cheaper in the long run and can save you thousands.
Types of Renters Insurance:
- Items: laptops, clothes, furniture, and TVs.
- Liability: if someone gets hurt on your property.
- Temporary housing: damages to your home- water damage or breaks in equipment.
What does Renters Insurance Cover?
There are two main sections:
- Section I covers the property of the insured.
- Section II provides personal liability coverage for the insured. Additionally, anyone who owns or leases property has a need for this type of insurance.
Auto Insurance:
If you bought or receive a car, insurance should be treated as mandatory. Things to look out for when buying insurance for the first time-
- Liability: Covers damage to others.
- Collision: Covers your car.
- Comprehensive: Covers theft, weather damage, vandalism, and more.
Read more about Auto Insurance …
📌 Pro Tip: Friends and finances do not mix well! Mudding these waters can lead to:
- Misunderstandings
- Arguments
- Resentment
- New finance mistakes and burdens
To protect yourself-
- Don’t share your bank account information
- Don’t cosign on any loans
- Put utilities in one person’s name and have other reimburse immediately before the due date
- For big purchases, create written contracts
Establish boundaries when it comes to Insurance, Payments, and Accounting. Money can quickly ruin a relationship!
Start Planning Today!
Protecting your first assets shouldn’t be complicated, and it takes little planning if done at the start. Insurances, clear boundaries, and simple organization will keep you protected and making confident choices down the road!
Author and Photo by: Mya Skowronski – Law Clerk, Phillips Ballenger