Your Finances, Your Future - Tips for Young Adults

Striking out on your own for the first time can be exhilarating – and sobering. Being solely responsible for your finances can be challenging. Creating a workable budget can be the simplest way to control your finances; it helps you identify the difference between “must have items” and “nice to have items.” Putting your expenses down on paper allows you to avoid debt and begin to manage it. Being smart about managing your money is one key to achieving your dreams and establishing your life as an independent adult. 

TIPS:

• Create a livable budget. A budget helps you track, day-to-day, money that comes in and money that goes out. A written budget helps you keep tabs on your expenses, pay your bills on time, and plan for special or unexpected expenses;
• Tackle your debt. Understand how much debt you have accumulated and develop a plan to pay it off. Pay off debt that carries the highest interest first. Interest adds up quickly on debts of any size, and the higher the interest, the faster it adds up;
• Paying for College. College can be one of the most important expenses in your budget. Finding affordable means of attending college is crucial. Many people mistakenly think they will not qualify for financial aid and don’t apply, but there is assistance out there for everyone.

TOOLS:

• Find financial aid that works for you. There are many types of financial assistance to investigate;
• Organize expenses. Use a calculator to help you stay on track;
• Set goals for dealing with debt. Check out ten tips for tackling debt.

TRAPS:

• Monitor your expenses. If you don't, it's very easy to spend it all on things you like and not have enough for things you need;
• Avoid offers of easy credit. They can be more expensive than regular credit cards. Limit yourself to one low-interest credit card for emergencies.

 Additional Information on Managing Your Money

 Return to Your Finances, Your Future Main Menu