Young people make mistakes, and that’s a part of growing up in life. However, financial mistakes can really set a young person back. Here’s some tips for young people to set themselves up for success and cultivating a healthy financial future:

  1. Using Credit Cards Irresponsibly – It makes sense to open up a credit card if you want to start building credit, but you should always ensure that whatever purchases are made on the card can be paid off before the end of the month. This way you avoid the interest charges as you won’t be carrying a balance over to the next month.
  2. Forgetting to Cancel Subscriptions – If you’re signed up for a bunch of subscription services, but you never utilize all of them then it’s time to cancel some plans.
  3. Taking On Too Much Student Loan Debt – Yes, student loan debt may be necessary in this day and age to get a degree. But be strategic about the debt you take on. Ensure that you know what degree you want to pursue before signing up for classes. Consider taking community college courses to get pre-requisites out of the way before attending university to lower your cost. And always, always, always apply for scholarships.
  4. Paying Too Much For Housing – Whether you’re a homeowner or renter it’s important to choose a residence that you can comfortably afford. As a general rule, you don’t want to pay more than 30% of your monthly income toward your rent/mortgage.
  5. Not Budgeting – You’ll never become financially stable if you never sit down and work out a budget. Budgeting doesn’t necessarily mean removing all the expenses that bring joy to your life. It just means making sure you have room in your budget to do so, while taking care of your other financial obligations.
  6. Ignoring Your Credit Score – Have you ever checked your credit score? It’s important to know and keep up on your credit score because a better score can save you money on interest when it comes to credit cards as well as auto, personal and home loans. It’s also good to recognize early if your score is being negatively affected.
  7. Paying Bills Late – Not paying your bills on time often incurs additional fees and higher interest rates. If remembering to pay bills is hard for you, make sure to set up automated payments.
  8. ATM Fees – Stop paying to access your own money. Small fees like these add up over time. Research surcharge free ATMs in your area and/or always carry cash on you for emergencies.
  9. Not Having An Emergency Fund – Emergencies are unavoidable, but you can always prepare for unexpected bills ahead of time. Don’t let unexpected medical bills or car troubles spiral you into debt.
  10. Overpaying For A Wedding – Don’t go into debt to pay for your wedding. It’s never a good idea to start your married life with a ton of debt as this causes financial and emotional strain on a marriage.


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