![]() Be aware of the issues that can come up with roommates though, since circumstances change, and you may be on the hook for their share. Roommates are a popular way to save money on rent. Read your lease before you sign it, and know your rights and responsibilities as a tenant, and what organizations can help you if you encounter issues. You'll need first month's rent and a security deposit up front, and even utility deposits sometimes. You may need a co-signer if you have minimal credit history. ![]() Landlords will want to see that you have income, so try to keep payments below 30% of your takehome pay. Seriously! But there comes a time when you want to / have to leave, and you'll need to rent a place. If you want to save money, live with your parents as long as you can. This is also the time to start learning about budgeting if you have significant responsibilities more on this in future posts. Fortunately, taxes are low for most young people (if only because their income is low.), and you may even get a refund if you file taxes! While your lifetime income is the single biggest determinant in your personal finance situation, at this age, your priority is not on current income as much as preparing for the future, thus the focus on education. This is a good time to learn about your rights and responsibilities as an employee, including how you are paid and taxed, as well as what your employer can legally do with your hours and even when you can be let go. You may find yourself working part-time or even full-time. If you're not sure what to do about continuing your education, look into two-year degrees, as well as taking credits that transfer to four-year colleges. smaller loans (~$20,000).įor cost-effective education, it's hard to beat community colleges. Be careful what you do here, since these loans will be yours / your parents until they are paid off! People who find themselves in trouble later usually took out bigger loans (~$100,000) vs. This is a complicated topic with many options. If you need money to continue your education, learn about student loans. Pay the balance in full every month! If you can't do that, then you are not ready to use a credit card. A secured or student card is probably your best option. ![]() It's the best way to independently establish credit without paying interest. This has pros and cons, but is a reasonable move for many people. This is different than the debit card your bank will provide with your account. You can apply for a credit card once you have income. We'll cover investments and retirement savings in future posts with limited or part-time income, savings are a better bet for now. Put away savings as soon as you can, it's a good habit to get into, and starts your emergency fund. You're not going to get rich off interest, sorry! But you can find better savings interest rates (1%!) at online-only banks. Small banks and credit unions typically have better customer service. You want a savings account and a no-monthly-fee checking account. The big change in your life at 18 is you are now legally an adult for contractual purposes, so time to get bank accounts in your own own name, i.e. To start out, you can benefit from this article with planning and education advice for those in high school, and recent grads. houses, retirement accounts, investments, etc), stay tuned for additional posts coming shortly, oriented towards 22-, 30-, and 40-year olds. If you don't see your favorite topic here (e.g. These are topics we get a lot of questions about in /r/personalfinance. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit.Īre you just starting out your independent life, and looking for financial advice on how to adult? Have we got a forum for you! Here's a collection of pointers to topics of interest to many 18-year-olds the specifics pertain to the US in some cases. Get your financial house in order, learn how to better manage your money, and invest for your future. Banking Megathread: FDIC, NCUA, and your cash.Private communication is not safe on Reddit. Scam alert: Ignore any private messages or chat requests. ![]()
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