Adulting 101: money management tips

Adulting can feel overwhelming, especially when it comes to finances. Take a deep breath — there are steps you can take to develop healthy money management habits and life skills to set you up for long-term success. Read on for a crash course in Adulting 101.

Budgeting: the foundation of financial independence

Creating and sticking to a budget is Adulting 101 for financial independence. Here’s how to start:

Adulting can feel overwhelming, especially when it comes to finances. Take a deep breath — there are steps you can take to develop healthy money management habits and life skills to set you up for long-term success. Read on for a crash course in Adulting 101.

Budgeting: the foundation of financial independence

Creating and sticking to a budget is Adulting 101 for financial independence. Here’s how to start:

• Track your income and everything you spend it on. Everything. Track that cup of coffee. Even that pack of gum you grabbed at the checkout counter. This gives you a snapshot of your financial situation and helps identify where and when you might be overspending.
• Break down your spending into categories: housing, utilities, groceries, entertainment, etc. This makes it easier to see where you can cut back if you need to.
• Once you have a clear understanding of your income and expenses, set short-term and long-term financial goals.  The more specific the better! This will help motivate you to stick to your budget. 

Credit and debt: your essential adulting tools

Credit and debt are powerful financial forces. Let’s talk about how to make good choices and keep them working for you instead of against you:

• Building a good credit score is essential for things like getting approved for car loans, renting an apartment and, one day, purchasing a home. Avoid opening too many new credit accounts at once, pay your bills on time and keep your credit card balances low to keep that credit score looking good.
• It’s true. Some debt, like student loans or a mortgage, can be considered an investment in your future. Credit card debt, however, should be avoided when possible. It can be tempting to use your card to finance a lifestyle you can’t afford. Resist!
• If you do find yourself in credit card debt, pay it off strategically. Prioritize paying off your cards with higher interest rates first, as they cost you the most over time.

Start saving: baby steps work

Saving money gives you a safety net for emergencies and helps you achieve your financial goals. Even if you start small, make saving a little each month a habit:

• Automating your savings is one of the easiest ways to make sure you’re consistently setting money aside. Set up automatic transfers from your checking account to your savings account on payday. This way, you’re paying yourself first and making saving a priority.
• Create an emergency fund. Consider opening a bank account that you contribute to every month and convince yourself it’s off limits. Make a list of things the money in that account can be used for, such as car repairs, health emergencies, or loss of a job, and don’t stray from that list.
• Piggy bank. Mason jar. Cookie tin. Don’t laugh! You might be surprised how much a little pocket change tossed in there every day can add up to after a month. Think of that as your fun money instead of heading for the credit card the next time you want to treat yourself.

Essential life skills: adulting at everything!

Adulting isn’t just about money. It’s also about developing the strong life skills necessary to manage your time and your general well-being.

• Planning and cooking your own meals not only saves you money but also supports a healthy lifestyle. Start learning to cook with simple recipes and gradually expand your skills. Make it fun! The kitchen might become your favorite room in the house.
• Time is one of your most valuable resources. Managing it properly allows you to balance work, personal life, and financial responsibilities. Calendars, to-do lists and time-blocking techniques will help you stay organized and focused on your goals.
• Being able to handle basic home maintenance tasks can save you money and give you a sense of independence. Just head to the internet! You’ll find endless video tutorials to show you how to fix minor issues like leaky faucets, clogged drains, etc.

Utilize resources: support is out there

You don’t have to navigate your finances alone. There are resources out there to provide guidance and support along your adulting journey.

• Tap a trusted family member, friend or even professional mentor for invaluable advice based on their own experiences.
• Many communities offer resources like financial education workshops, free tax preparation services and career counseling. Take advantage of these opportunities to expand your knowledge and build a strong support network.

You’ve got this!

By creating a budget, understanding credit and debt, prioritizing savings and developing life skills, you’ll be well on your way to a stable and successful adulthood. Remember, it’s okay to ask questions and seek help along the way — financial independence is about growth, learning and making informed decisions.

• Track your income and everything you spend it on. Everything. Track that cup of coffee. Even that pack of gum you grabbed at the checkout counter. This gives you a snapshot of your financial situation and helps identify where and when you might be overspending.
• Break down your spending into categories: housing, utilities, groceries, entertainment, etc. This makes it easier to see where you can cut back if you need to.
• Once you have a clear understanding of your income and expenses, set short-term and long-term financial goals.  The more specific the better! This will help motivate you to stick to your budget. 

Credit and debt: your essential adulting tools

Credit and debt are powerful financial forces. Let’s talk about how to make good choices and keep them working for you instead of against you:

• Building a good credit score is essential for things like getting approved for car loans, renting an apartment and, one day, purchasing a home. Avoid opening too many new credit accounts at once, pay your bills on time and keep your credit card balances low to keep that credit score looking good.
• It’s true. Some debt, like student loans or a mortgage, can be considered an investment in your future. Credit card debt, however, should be avoided when possible. It can be tempting to use your card to finance a lifestyle you can’t afford. Resist!
• If you do find yourself in credit card debt, pay it off strategically. Prioritize paying off your cards with higher interest rates first, as they cost you the most over time.

Start saving: baby steps work

Saving money gives you a safety net for emergencies and helps you achieve your financial goals. Even if you start small, make saving a little each month a habit:

• Automating your savings is one of the easiest ways to make sure you’re consistently setting money aside. Set up automatic transfers from your checking account to your savings account on payday. This way, you’re paying yourself first and making saving a priority.
• Create an emergency fund. Consider opening a bank account that you contribute to every month and convince yourself it’s off limits. Make a list of things the money in that account can be used for, such as car repairs, health emergencies, or loss of a job, and don’t stray from that list.
• Piggy bank. Mason jar. Cookie tin. Don’t laugh! You might be surprised how much a little pocket change tossed in there every day can add up to after a month. Think of that as your fun money instead of heading for the credit card the next time you want to treat yourself.

Essential life skills: adulting at everything!

Adulting isn’t just about money. It’s also about developing the strong life skills necessary to manage your time and your general well-being.

• Planning and cooking your own meals not only saves you money but also supports a healthy lifestyle. Start learning to cook with simple recipes and gradually expand your skills. Make it fun! The kitchen might become your favorite room in the house.
• Time is one of your most valuable resources. Managing it properly allows you to balance work, personal life, and financial responsibilities. Calendars, to-do lists and time-blocking techniques will help you stay organized and focused on your goals.
• Being able to handle basic home maintenance tasks can save you money and give you a sense of independence. Just head to the internet! You’ll find endless video tutorials to show you how to fix minor issues like leaky faucets, clogged drains, etc.

Utilize resources: support is out there

You don’t have to navigate your finances alone. There are resources out there to provide guidance and support along your adulting journey.

• Tap a trusted family member, friend or even professional mentor for invaluable advice based on their own experiences.
• Many communities offer resources like financial education workshops, free tax preparation services and career counseling. Take advantage of these opportunities to expand your knowledge and build a strong support network.

You’ve got this!

By creating a budget, understanding credit and debt, prioritizing savings and developing life skills, you’ll be well on your way to a stable and successful adulthood. Remember, it’s okay to ask questions and seek help along the way — financial independence is about growth, learning and making informed decisions.