💼 10 Financial Habits to Start Before You Turn 20

💼 10 Financial Habits to Start Before You Turn 20

Series: Financial Literacy for Real Life – Article 1

Let’s play a game:
Would you rather…

• Have a $1 million income and always be broke?

• Or make $50K a year and be financially free by 35?

Plot twist: It’s not about how much you make—it’s about how much you keep and grow.

The truth? Most wealthy people didn’t win the lottery or invent an app. They built habits. Boring, not-Instagram-worthy habits. And they started early.

So if you’re under 20, you’re in the perfect window. Like brushing your teeth or putting on deodorant (please), these money habits are simple, powerful, and can change your life.

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🧠 1. Know Where Your Money Goes

If you don’t track it, it disappears.
Like socks in the dryer or the last slice of pizza at a party.

✅ Use a notebook, app, or your Notes app—just start writing down where every dollar goes. Coffee. Gas. Tacos. You’ll be amazed.

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💸 2. Budgeting Isn’t a Punishment—It’s a Plan

Think of a budget like Google Maps for your money.
Without it, you’re driving blind.

✅ Use the 50/30/20 rule to start:

• 50% needs (food, gas)

• 30% wants (yes, Chick-fil-A counts)

• 20% savings/debt

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🐖 3. Save Before You Spend

As soon as money hits your account, pay yourself first. Not last.

✅ Set up auto-transfers—even $5/week to start. Your future self will want to high-five you.

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📱 4. Check Your Bank Account Like You Check Instagram

Not obsessively—but regularly.
Avoid the “surprise” of being broke.

✅ Make it a habit to check in weekly. Awareness = control.

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💳 5. Credit Isn’t Free Money

A credit card isn’t a magic pass. It’s a loan—with a smile.

✅ Use it only for things you can pay off in full each month. And never spend just to earn points.

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🧾 6. Learn to Read a Pay Stub

That $15/hour job? You don’t actually get $15/hour.

✅ Understand taxes, deductions, and what “net pay” means. The adult world charges rent.

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💥 7. Avoid “Lifestyle Creep”

Just because you earn more doesn’t mean you should spend more.

✅ As income increases, keep your expenses low. The extra? Invest it. Save it. Don’t blow it.

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🎓 8. Understand How Student Loans Work Before You Sign

Loans are easy to get—and hard to get rid of.

✅ Know the difference between subsidized and unsubsidized. Ask: What’s the monthly payment going to be when I graduate?

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💰 9. Start a Side Hustle (Even if It’s Small)

You don’t need a business plan—just initiative.

✅ Babysit, tutor, design Canva graphics, resell shoes—whatever fits you. Learn how to earn money without a job description.

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🚀 10. Learn About Compound Interest (It’s Basically Magic)

If you invest $100 a month starting at 18, you could have $300,000+ by retirement.
Start at 28? It’s half that. 😳

✅ Time is your biggest asset. Use it now.

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Final Word: Be the Friend Who Gets It

It’s cool to be smart about money.
It’s cool to say no to dumb purchases.
It’s cool to build wealth before you’re 30.

So go ahead—start small, start now, and start strong.

And remember: you don’t have to be perfect. You just have to be aware.

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