7 Ways Young Adults Can Become Financially Responsible


In school, most young people are not taught ways to manage money. Money management is usually taught at home, but that only happens if the parents know how to manage money. So when they get out of college and are already in debt and finally get a job, some of them are at a loss on how to manage it.

Any young person that wants to be successful or wants a leg up in life needs to know how to manage their finances.

Open up 2 Bank Accounts

When it comes to managing your finances, it is important to get into the habit of saving your money and knowing what you can live off of. There are many banks to choose from, so do your research and find the best one for you. Once you find the right bank open up both a savings account and a checking account.

Your checking account can be used for your daily expenses and to pay your bills.

Your savings account is used to save money. You shouldn’t touch the money in this account if you don’t have to. You can save up for a trip, a car, to get your own place. This account is to get you in the habit of saving money. This is important because once you are in the habit of spending money, it’s hard to make saving it a habit.

Once you have set up both accounts, try to put away some of your paychecks into your savings account and leave it there. If possible, but at least 3% of your paycheck into your savings account.

Create a Budget

Learning how to budget your money is key when it comes to managing your money. You should not only, how to create a budget but to stay within that budget. Any adult will tell you, creating a budget is relatively easy. But working within the confounds of that budget is difficult.

The key is to be firm with your budget but not too tight. Take inventory of the money you have coming in and your bills. You can use an app or a spreadsheet. Put in every bill you have, rent, food, utilities, gas, and so on. Write down what you have coming in and what goes out.

Don’t budget so tightly that you don’t have any room for things that may pop up. These things include eating out, or surprise car repairs, and so on.

Credit Cards

When you turn eighteen, you will start getting credit card offers in the mail. Now just because someone wants to give you something doesn’t mean you have to take it. Credit cards can help you build up your credit score, and that will come in handy when you want to get an apartment, car, or buy a house.

But you don’t need a credit card just because they are sending you one doesn’t mean it is in your best interest to take it.

You need credit. Make sure you do your research first. Some credit cards have good perks. If possible, ask your bank first. They may have unsecured or secured credit cards that they can offer to you. This will help you build credit and teach you financial responsibility.

Emergency Fund

Keeping an emergency fund is a smart financial decision. You never know what could happen. A storm could come, and you may need to leave your home and stay in a hotel or with someone. Some disaster could hit, and you may need to start over. Or your car may break down. Or you may have a medical emergency. Having this fund will help give you peace of mind. But you need to put it in a high-interest savings account or a money market account.


Now, if you’re young, you may think you don’t need insurance, but you do. You would be wrong. You should have a home, life, and auto policy. Some policies have savings options that can grow by interest or investments.

Financial Planning

When it comes to financial planning, it is something to be taken seriously. Your future may depend on it. Decide what you want early on. Do you want to retire early? Do you want to have money for travelling? Financial planning means sticking to your budget, sticking to your savings plan, and cultivating investments. A financial advisor can help you. But being financially literate is important, so you should read up on it too.

Plan for Retirement

You are never too young to be thinking about retirement. You should start planning for it early, so you’ll know what you need to make it happen. The sooner you start saving, the sooner you can retire and start doing something else with your life. If your company has a retirement plan, take advantage of it.