5 Tips about Personal Finance for New Adults

As I turn 24 (my, how I am getting old!), I am evaluating adulthood so far and thankful for some of the financial decisions I made (and annoyed about others, of course). For the most part, I think I've done the best with what I've had.


When I was in high school I got a lot of lectures from my older brother all the time about finance, for which I am thankful. If there was an 18-year-old out there listening, here are the tips I’d make you listen to if you were my little sister:

Get credit. Everyone talks about credit cards like they are the plague, but think of it like alcohol: You should learn how to use it responsibly when you are young. Not only is it helpful to learn how to use those things without going crazy, it is also the way to build up credit. FYI: They check your credit score when you are looking for an apartment, especially in New York City. (Of course, the credit markets are not what they used to be, but build up credit when you can.)

Go to a cheap school. Particularly if you have to pay for a lot of your own college, try looking for a state school that is renowned in your major. For instance, Ohio University has one of the best journalism schools in the country, so I’m glad I went there instead of paying way more for a private college with a worse journalism school. (However, please note private schools will often give more scholarships, so the cost can sometimes come out even.)

Pick a real job. I am a very creative person and I have a lot of creative dreams. However, I have chosen to channel those through a normal career that pays (albeit a field that isn’t doing so well at the moment...). A lot of times you can pair a “career” job with a “creative/academic” job. I earned my undergraduate certificate in women’s studies. The point is, journalism is a career, and women’s studies is more academic—but the two work very well together. Then on the side I specialized in dance—which I really knew I had no hope to pursue as a job. Maybe it will work for you to major in studio art, but for most people it really doesn’t.

Start saving ASAP. The minute you have a job and pay off those high-interest credit cards from buying Ikea furniture for your first apartment, force yourself to put aside money from every paycheck into your 401(k) and also into a savings account to develop an emergency fund—yes, even while paying off student loans. You can afford it; do not accept a “no” from yourself.

Quit smoking. And now, a message from our sponsor... I don’t really regret having smoked, as addictive personalities could do a lot worse. But in addition to the health benefits, quitting will probably save you hundreds of dollars every year. Just sayin'!