Early Adulthood

Adulthood comes with a number of significant financial milestones. In your late teens and early twenties you will probably go through a number of steps on your way to financial independence from your parents or other sources of financial support. Getting your first credit card is one such important step that will force you to take responsibility for your finances. Your first credit card offers an excellent opportunity to monitor your spending, plan, and pay off debt. It’s good practice for the more complicated financial responsibilities you will have later on in life, such as a mortgage or rent, insurance, utilities, groceries, and costs associated with children. Similarly, purchasing your first car is an opportunity to assess what you can afford and work to pay it off over time. Cars also come with an array of other costs, such as insurance payments, fuel, unexpected repairs, and licensing fees.

Other significant financial milestones may include getting your first job and doing your income taxes for the first time. When you get your first full-time job, you will find yourself with a steady source of income and perhaps more opportunities for spending. It’s important to come up with a financial plan at this point, including a budget so that you know how much money you can afford to save, while still paying off debt and taking care of other financial responsibilities such as rent or monthly bills. While you may fear the first time you do your taxes, you shouldn’t. Taking an interest in your taxes can definitely help you to save money where you wouldn’t otherwise, through deductions and rebates. Finally, getting married is another milestone that may make you re-consider your financial situation as you merge your assets with your partner’s. The key element to a good financial relationship between you and your spouse is open communication