Master Plan Academy log with map.
Get Started

[email protected]

+1.510.295.3122

Failure to Adult: Why Life Coaching and Financial Education for Teens Matter

by | Nov 12, 2024 | Career Success, College Admissions, Personal Finance & Economics

 

Failure to “Adult”: Why Life Coaching & Advanced Financial Education Matter

Meet Alex. Fresh out of college and stepping into his first big job (a data analyst for a startup) in a bustling city, he’s eager to succeed. But his days are a whirlwind of stress. . .

The high cost of rent in his cramped apartment swallows up half of his paycheck. Utility bills, food costs, and the relentless monthly student loan payments leave him scraping by with little left for savings—or even for much of a social life. By the end of each exhausting week, he’s questioning how anyone manages to “adult” with grace.

This isn’t just Alex’s story. Many Gen Z young adults (to be clear, young adults with college degrees) are grappling with the harsh realities of early adulthood. Born approximately between 1997 and 2012, Gen Z began to enter the workforce around 2019. According to a recent survey by Deloitte, nearly half of Gen Z respondents cited cost of living as a top concern (Deloitte). Meanwhile, the New York Times highlighted that as of 2022, more than 45% of 18- to 29-year-olds were living at home with parents, the highest rate since the Great Depression(Fry)! Fewer than one in four Gen Z adults own investments, leaving them financially vulnerable (Pew Research Center). And if that wasn’t bad enough, a 2024 survey found that 60% of recent Gen Z hires were fired within months (for reasons we discuss in another post here). That’s troubling, when 57% of Gen Z doesn’t have enough in savings to cover three months of expenses(Bank of America). Half are not on track to buy a home, 46% are not on track to save for retirement, and 40% are not on track to save for retirement in the next five years(Bank of America).

Young man in front of laptop in room with stacks of bills.

It’s not only financial struggles. Many young people find themselves disillusioned in the workplace. Studies show that 46% of Gen Z report feeling “burned out” due to work stress (Indeed). The American Psychological Association finds that 58% of people 18 to 34 describe their stress levels as “completely overwhelming”(APA). The transition from structured academic life to chaotic adult responsibilities can be overwhelming, especially when vital “adulting” skills are missing.

 

The Disconnect: How We Got Here

What’s going on? The way students are prepared for life after high school is deeply inefficient and often misaligned with real-world needs:

College Aspirations vs. Life Skills
Many high-achieving students dedicate themselves to academics with the hope of getting into top colleges. That’s great- big aspirations can be a wonderful thing. But in the race for grades and extracurriculars, there’s rarely time to learn crucial life skills. Navigating finances, building credit, or creating budgets are often left out of the equation. Instead, students fixate on getting into selective colleges with hefty price tags, assuming they’ll “figure it out” later.

Superficial High School Exploration
High schools often blend “life skills” education with basic health classes or leadership training. But rarely do they dive deep into what drives students or help them understand how their talents, passions, and values can translate into meaningful careers. In Finding Your Element, Ken Robinson argues, “Too many people never connect with their true talents and therefore don’t know what they’re capable of achieving”(Robinson). Similarly, the Japanese philosophy of Ikigai emphasizes finding purpose by aligning what you love, what you’re good at, and what the world needs (García and Miralles).

College Without a Compass
Once in college, many students select majors without guidance or a vision for their future. Most institutions don’t provide personalized life coaching to help students design the life they want. Instead, they’re busy keeping up with classes, part-time jobs, and social pressures.

Learning Finance the Hard Way
After graduation, the reality hits: bills, taxes, rent, and debt management become daily stressors. While economics or business majors may have a head start, most young adults learn personal finance through trial and error—often with costly consequences. For those unprepared, the transition can be brutal. And even if they get by, they certainly won’t be thriving and will likely miss out on years of smart investing.

Getting Lost Has Costs

The high levels of burnout young people face often make people realize that they’ve chosen the wrong career. A survey by the American Institute for Economic Research found that 82% of respondents had transitioned to new careers after age 45, often because they were not fulfilled by their existing career(World Metrics). But this can be expensive. These days you often here of people younger than 45 doing full-year data analyst or coding bootcamps. On average, training full-time for a year can cost close to $50k, and that’s not including the lost earnings during that time (CareerShifters). 

A New Vision for Preparing Teens

Yes, figuring out “adulting” has always been a rite of passage. But is there a better way? Could we reverse engineer the process, starting with the early teen years?

Imagine rewinding the clock and offering Alex comprehensive life coaching that not only builds financial and economic knowledge but also taps into his unique talents and values. What if this coaching helped teens succeed in college admissions, but more importantly, helped them choose the right colleges and majors based on a solid foundation of self-awareness?

The state of California has at least recognized one part of this need: the lack of financial education. Governor Gavin Newsom recently signed legislation requiring high school students to take financial literacy courses (California Legislative Information, 2023). But implementation isn’t easy; there’s already a shortage of qualified math teachers (National Center for Education Statistics). How will the state find teachers with sufficient background in finance and economics?

That challenge is likely to impact the quality and consistency of what schools provide and keep the curriculum basic. But, imagine a curriculum that goes beyond the basics of banking, savings, and interest rates. Teens could learn to budget for their future lives gathering real-world data, use AI and career assessments to explore career paths and gather real-world data on supply and demand, and evaluate college costs and potential return on investment.

 

College Admissions Coaching Integrated with Life Coaching & Financial Education

The benefits of early financial education are clear. Research shows that teens who learn personal finance make better decisions as adults, experience less debt, and build stronger savings habits (Jump$tart Coalition).

But we’re talking about more than that. Rather than set teens up for overwhelm with “adulting”, confusion about their path, and the burnout and career challenges that Gen Z is facing, why not redesign the way that teens make the move to college and beyond? There is a big opportunity here to help teens connect the dots between their life goals, college admissions, and financial/economic thinking.

At Master Plan Academy, connections are at the heart of what we do. But, this kind of guidance takes both a special mindset and a unique skillset. Learn more about our approach and why we are uniquely positioned to guide your teen to connect the dots and design his dream life.

 

Sources