One of the biggest secrets to financial success is starting early. The sooner you develop smart money habits, the faster and easier it will be to achieve your goals down the line. The problem is that financial advice isn’t exactly taught in schools. Young adults are left to learn financial literacy by their own means.
At MoneyLion, we’ve decided to do something about this. Which is why we’ve compiled our take on the best financial advice for young adults.
Take a look at the top money moves you should be implementing now to get a head start on your financial future!
Table of Contents
Open a Bank Account
Opening your own bank account allows you to start managing your money. It’s also the first real step towards financial independence and financial health. However, not all bank accounts are created equally. While it’s common to have to pay a small monthly fee to maintain your checking account – what you really want to watch out for are banks that charge hidden fees.
Look for checking accounts that have 0 minimums, no hidden fees, and that are easy to open. You’ll also want access to an easy-to-use mobile app that’ll let you manage your finances from your smartphone or another mobile device.
MoneyLion’s RoarMoney is top choice for online checking accounts for young adults. There are no balance minimums, no hidden fees, and accounts are entirely manageable online.
Plus, RoarMoney offers additional benefits like debit card rewards, price protection, and other perks you may not find at traditional banks.
Always Look for Income Opportunities
Whether you are a full-time student or already have a part-time job, make sure to always be on the lookout for new opportunities to bring in extra cash.
Babysitting, pet-sitting, tutoring, driving for a ride-share company, and online gigs are all flexible options that can generate real results. Take a look at other ways you can make extra cash here.
Evaluate Large Purchases
Suppose you’ve opened your bank account and found a successful side-hustle. Hopefully by now you’re starting to see your efforts pay off and your account balance grow. You might feel tempted to splurge on something you’ve been waiting to buy.
It’s important to evaluate large purchases to make sure you’re getting the best possible deal. Wait until holiday sales, check different sites for the best price, find coupons, and employ other thrifty tactics.
When in doubt, use RoarMoney’s price protection feature. If you find the item you bought selling for a lower price within 90 days of your purchase date – you can get a refund for up to $250!
Understand Your Student Loans
Student loans have come under mass scrutiny the past couple of decades. This is due to the extraordinary amount of debt young adults can find themselves if they don’t fully understand how these loans work.
When applying for student loans, make sure to read the fine print. It’s also wise to ask your parents or someone you trust to read them through. In the meantime, look for grants or consider completing your core courses at a smaller school to save. Also remember to thoroughly evaluate the job opportunities available before you settle on a major.
Create a Budget
You might be putting off creating a budget until you feel you’re 100% financially independent. But even as a student or working young adult, learning how to budget is a useful skill that teaches you about money.
Creating a budget helps you develop smart money habits that will set you up for success later in life. Plus, you’ll learn things that are useful in many business situations. Making a budget is also easier than you might think. Just take a look at these steps.
Build Credit Responsibly
Building credit early on is key to developing a positive credit history. In order to build credit responsibly, you should only open lines of credit that make sense. Opening up store credit cards or applying for credit arbitrarily will hurt your score for years to come.
Instead, you want to start out with a small loan and gradually move on to larger lines of credit, such as an auto loan or credit card. One good option is to take out a Credit Builder Loan from MoneyLion. This loan is designed to help people with no credit history build credit. You can borrow up to $1,000 at a low-interest rate and you’ll build up good credit as you pay back your loan amount on-time each month.
Investing early gives you an edge when it comes to compound interest and building wealth. Even if you only have a few dollars to invest each month, it’s better than nothing. Look for investment accounts that guide you through the process, offer a level of security, and potential for annual growth.
MoneyLion’s fully managed investment account are a great option for young adults. They boast super low fees and professional investment portfolios developed by Wilshire Partners that are easy to understand.
You don’t need to go to school for finance to gain access to financial resources. Nowadays, there are a multitude of different ways to educate yourself on financial literacy. Look for a mentor, subscribe to financial advice newsletters, listen to podcasts, and do some online reading.
Newspapers like the Wall Street Journal and The Economist are great resources for developing your financial lingo. Podcasts like Your Money Briefing and Marketplace are also worth tuning into. Of course, you can also easily stay updated with our MoneyLion blog that’s full of useful information!
Use MoneyLion To Build Your Financial Future
As a young adult, getting a head start on your financial future will secure you for the rest of your life. This means developing smart money habits like budgeting, investing, building credit, opening a bank account, and constantly staying up to date on the latest financial news and tips.
MoneyLion is a resource that can help you along the road to long-term financial success. Take advantage of premium mobile banking for just $1/month, 0% APR cash advances, fully managed investing, and more.
Get started now and make your financial future roar!