Let’s be real — adulting comes at you fast. One minute you’re in school, the next you’re staring at your bank app wondering where all your money went. Managing your finances might feel overwhelming at first, but the good news is: you don’t need to be a financial expert to make smart money moves.
Whether you’re just starting your first job or figuring out how to file taxes on your own, here are 10 essential things every young adult should be doing with their money — starting today.
1. Build a Simple Budget (and Actually Use It)
Budgeting isn’t about cutting out everything fun — it’s about knowing where your money is going. A good place to start is the 50/30/20 rule:
- 50% for essentials (rent, groceries, transportation)
- 30% for wants (entertainment, travel, subscriptions)
- 20% for savings and debt
Use a notebook, spreadsheet, or free app like YNAB to keep track. Consistency is key.
2. Start an Emergency Fund
Life happens. Your car breaks down, you lose your job, or your laptop gives up during finals. An emergency fund keeps unexpected expenses from turning into debt. Start small — $500 is a solid first goal. Over time, aim to save 3–6 months of living expenses.
Set it up in a separate savings account so you’re not tempted to dip into it for concert tickets.
3. Open a Checking and Savings Account (If You Haven’t Already)
You’ll need both. Checking for your everyday spending. Savings for goals and emergencies. Look for accounts with:
- No monthly maintenance fees
- No minimum balance
- Good mobile apps
Online banks and credit unions often have better rates and fewer fees than traditional banks.
4. Understand Credit Scores and Why They Matter
Your credit score affects everything from getting a loan to renting an apartment. It’s based on five things:
- Payment history (35%)
- Amounts owed (30%)
- Length of credit history (15%)
- New credit (10%)
- Credit mix (10%)
Pay your bills on time, keep credit card balances low, and avoid applying for too much credit at once. Many credit card companies provide your credit score for free on your monthly statement or when you log into your account online.
5. Avoid High-Interest Debt (Especially Credit Cards)
Credit cards are convenient — but also dangerous if you don’t pay them off in full. Interest adds up fast. If you’re already carrying a balance, focus on paying it down aggressively. In the meantime, use debit or cash to avoid adding more to your balance.
6. Set Financial Goals (Short- and Long-Term)
What do you want to do with your money? Travel? Buy a car? Move out? Start a business?
Set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound). Write them down. Break big goals into monthly savings targets to stay on track.
7. Start Saving for Retirement (Yes, Now!)
It might feel like retirement is forever away, but your future self will thank you for starting early. Even small contributions now can turn into six figures thanks to compound interest.
Start with:
- A 401(k) if your employer offers one — especially if they match!
- Or a Roth IRA, which grows tax-free.
💡 Pro tip: Retirement contributions may impact your taxes. ezTaxReturn can help you claim deductions and credits you qualify for.
8. Learn How Taxes Work
Taxes can seem confusing, but they’re totally manageable — especially if you’re using ezTaxReturn. A few basics:
- Know the difference between W-2 and 1099 income
- Track deductible expenses like student loan interest or education credits
- File on time to avoid penalties
First time filing? ezTaxReturn makes it fast and easy — no tax knowledge required.
9. Stop Comparing Yourself to Others
Social media makes it look like everyone’s living their best (and most expensive) life. But most people aren’t showing their student loans or credit card debt. Don’t fall into the trap of overspending just to keep up.
Your only competition is you — focus on your goals, your savings, and your future.
10. Keep Learning About Money
Financial literacy is a journey. The more you know, the better your decisions will be. Try:
- Podcasts like “So Money” or “The Ramsey Show”
- YouTube channels like “Graham Stephan” or “The Financial Diet”
- Following ezTaxReturn for easy-to-understand money and tax tips
Final Thoughts
You don’t need to have it all figured out today — but taking small steps now will put you in a much stronger financial position tomorrow.
Need help filing your taxes?
Whether you’re a first-time filer or just tired of doing it the hard way, ezTaxReturn makes tax season simple. File online fast, with step-by-step guidance and built-in accuracy checks. Get started now at ezTaxReturn.com
