Financial Tips for Living on Your Own

Living on your own for the first time can be quite the overwhelming experience. All of a sudden, you are in charge of your life. Your parents aren’t there to write the checks to pay the bills — you have to do it on your own. Making the transition from childhood to adulthood is not an overnight process. It is something that takes time, and you can expect to make your fair share of mistakes. The biggest responsibility you face is meeting your financial obligations. Here are some tips to help you get started into adulthood with solid financial footing:

Open a checking account as soon as you get your first job. Even if you are not a legal adult yet, you can still open a checking account. You may need your parents’ help, but once you have a checking account, you can start managing your money.
Keep track of every check you write. You can do this by using the ledger that comes with your checkbook, or you can order a check register from us. Writing down every purchase you make and every bill you pay will help you keep track of where your money is going.
Don’t forget to keep track of all deposits. It can be easy to overlook a deposit if it is made automatically, so make sure you know when your paychecks will be deposited.
Balance your register with your bank statement every month. Make sure there are no discrepancies.

Learning financial responsibility starts as soon as you have money to manage. Whether it is an allowance or a job, opening a checking account will help you learn to manage your money. If you choose not to open a checking account until you are a legal adult and moved out on your own, keep those tips in mind. It is never too late to learn how to be financially responsible.

One last thing to keep in mind — when you do move out on your own for the first time, make a budget and stick to it. There are various ways you can do this. One popular method is the envelope system, in which you have an envelope for all expenses, such as utilities, rent, food, entertainment, gas, etc. Once the envelope is empty, you cannot refill it. This will help teach you to budget your weekly allotments with care.