Book SummaryHow to Adult, by Jake Cousineau

1-Page Summary1-Page Book Summary of How to Adult

In How to Adult, Jake Cousineau provides a comprehensive guide to personal finance and life skills for young adults. He covers essential topics such as budgeting, investing, taxes, and major life decisions like buying a car or a house. Cousineau emphasizes the importance of financial literacy and provides practical advice to help readers make informed decisions and avoid common pitfalls. The book is designed to equip young adults with the knowledge and tools they need to navigate the complexities of adulthood and achieve financial independence.

Cousineau is a high school teacher and author...

How to Adult Summary Foundational Financial Concepts

According to Cousineau, understanding budgeting and financial planning is crucial. A financial plan is a comprehensive way to allocate your money according to your earnings and expenditures. It's a crucial step to succeed financially, helping you prevent debt, make future investments, and accomplish your monetary objectives. Budgeting demands self-control and organization, enabling you to track your finances and direct your spending. Cousineau emphasizes that every financial decision involves tradeoffs. Spending too much in one category means you’ll have to spend less in another. The top three expenses that tend to break budgets are accommodation, travel, and meals, and excessive spending in these areas can derail your plans. The easiest way to make your budget better is to increase your income.

(Shortform note: While increasing your income can help you make your budget better, it can also backfire. In The Millionaire Next Door, Thomas J. Stanley and William D. Danko explain that many people who earn high incomes aren’t truly wealthy because they spend as much as they earn. As their income increases, they upgrade...

How to Adult Summary Applying Financial Principles to Life Decisions

Next, Cousineau urges you to consider the financial implications of your decisions about education. College is expensive, and you should take every possible step to minimize the expense. Picking the priciest institution can lead to financial trouble, so you should balance what you'll earn in the future with the school's cost.

(Shortform note: Some scholars disagree with Cousineau’s view that you should make decisions about where to study based on financial considerations. In Not for Profit, philosopher Martha C. Nussbaum argues that education should never be viewed primarily as a way of increasing a nation’s economic growth, but as a process of cultivating critical thinking, empathy, and the capacities for democratic citizenship that enable people to live together with justice and mutual respect.)

Next, we’ll discuss ongoing financial management, growing your resources, protecting your monetary well-being, and considerations for significant purchases.

Ongoing Financial Management

Growing Financial Resources

Cousineau asserts that putting money into investments is a key strategy for growing...

Shortform Exercise: The Art of Budgeting

Explore how budgeting can impact financial decisions and create a plan that reflects personal priorities and goals.

Think about a recent time when you spent money on accommodation, travel, or meals. How did that spending affect your budget for other things? Could you have spent differently?