conversation: User (yes_its_him): "Are 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.  These are  topics we get a lot of questions about in /r/personalfinance.  \n\nIf you don't see your favorite topic here (e.g. houses, retirement accounts, investments, etc), stay tuned for additional posts coming shortly, oriented towards 22-, 30-, and 40-year olds.  (Here's [ELI22](https://www.reddit.com/r/personalfinance/comments/4tlqsd/eli22_personal_finance_tips_for_older_young/).)\n\n- To start out, you can benefit from [this article](https://www.reddit.com/r/personalfinance/wiki/teachme) with planning and education advice for those in high school, and recent grads.\n\n- The big change in your life at 18 [19 in Alabama/Nebraska] is you are now legally an adult for contractual purposes, so time to get [bank accounts](https://www.reddit.com/r/personalfinance/wiki/financialinstitutions) in your own own name, i.e. not with your parents.  You want a savings account and a no-monthly-fee checking account.  Small banks and credit unions typically have [better customer service](http://www.consumerreports.org/banks-credit-unions/choose-the-best-bank-for-you/).  \n\n- You're not going to get rich off interest, sorry!  But you can find better savings interest rates (1%!) at [online-only banks](https://www.nerdwallet.com/blog/banking/nerdwallets-top-high-yield-online-savings-accounts/).  Put away savings as soon as you can, it's a good habit to get into, and starts your [emergency fund](https://www.reddit.com/r/personalfinance/wiki/emergencyfunds).  We'll cover investments and retirement savings in future posts;  with limited or part-time income, savings are a better bet for now.\n\n- You can apply for a [credit card](https://www.reddit.com/r/personalfinance/wiki/creditcards) once you have income.  This is different than the debit card your bank will provide with your account. This has pros and cons, but is a reasonable move for many people.  It's the best way to independently establish credit without paying interest. A [secured](https://www.nerdwallet.com/blog/top-credit-cards/nerdwallets-best-secured-credit-cards/) or [student](http://www.creditcards.com/college-students.php) card is probably your best option.  Pay the balance in full every month!  If you can't do that, then you are not ready to use a credit card.\n\n- If you need money to continue your education, learn about [student loans](https://studentaid.ed.gov/sa/types/loans).  This is a complicated topic with many options.  Be careful what you do here, since these loans [will be yours](http://blog.credit.com/2015/06/what-happens-if-i-ignore-my-student-loans-84434/) / your parents until they are paid off!  People who find themselves [in trouble](http://www.usnews.com/news/articles/2015/06/08/heaviest-college-debt-burdens-fall-on-3-types-of-students) later usually took  out bigger loans (~$100,000) vs. smaller loans (~$20,000).\n\n- For cost-effective education, it's hard to beat [community colleges](http://www.marketwatch.com/story/four-reasons-to-choose-community-college-2013-11-15).  If you're not sure what to do about continuing your education, look into [two-year degrees](http://www.payscale.com/college-salary-report/majors-that-pay-you-back/associate), as well as taking credits that [transfer to four-year colleges](http://www.usnews.com/education/blogs/professors-guide/2009/09/16/10-tips-for-transferring-from-community-college).  \n\n- You may find yourself working part-time or even full-time.  This is a good time to learn about your [rights and responsibilities](http://www.nolo.com/legal-encyclopedia/employee-rights)  as an employee, including [how you are paid](http://money.howstuffworks.com/wage2.htm) and [taxed](https://www.irs.com/articles/understanding-payroll-and-withholding-taxes), as well as what your employer can legally do with your hours and even when you can be let go.  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.  \n\n-  This is also the time to start learning about [budgeting](https://www.reddit.com/r/personalfinance/wiki/budgeting) if you have significant responsibilities; more on this in future posts. \n\n- If you want to save money, live with your parents as long as you can.  Seriously!   But there comes a time when you want to / have to leave, and you'll need to rent a place.  Landlords will want to see that [you have income](http://www.myfirstapartment.com/2015/06/how-much-rent-can-i-afford-on-my-income-two-simple-ways-to-estimate/), so try to keep payments below [30% of your takehome pay](http://www.apartmenttherapy.com/how-much-rent-you-can-really-afford-renters-solutions-186462).  You may need a co-signer if you have minimal credit history.   You'll need first month's rent and a security deposit up front, and even utility deposits sometimes.  Read your lease before you sign it, and know your [rights and responsibilities](https://www.ziprealty.com/buy/renters-rights.jsp) as a tenant, and what organizations can help you if you encounter issues.  \n\n- Roommates are a popular way to save money on rent.  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.  Have all roommates on the lease.  You might even want a [roommate agreement](http://www.nolo.com/legal-encyclopedia/free-books/renters-rights-book/chapter6-2.html).  Perhaps Sheldon Cooper has it right after all?  Alternatively, consider renting a room from someone who owns their own house.\n\n- Aside from rent, cars are the biggest expenditure for many young people.  You can save a [lot of money](https://www.nerdwallet.com/blog/loans/total-cost-owning-car/) if you don't need to pay for one!   It's not just the purchase cost.  There's gas, repairs, and especially [car insurance](https://www.reddit.com/r/personalfinance/wiki/carinsurance), which is  [very expensive](http://www.carinsurance.com/Articles/cheapest-minimum-liability-insurance.aspx) for young people, typically at least $100/month, and can even be $200/month in some places, or if you have a tickets / accidents. \n\n-  Your best bet if you do need a car is to save up $5000 or so for a [reliable used car](http://www.carsdirect.com/used-car-buying/best-5-reliable-used-car-models), then pay cash, so you can avoid finance charges and make your own insurance choices.  If you do need to finance a car, be very careful of financing offers for young people.  Double-digit interest rates are a Bad Thing.  You do not want to "build credit" that way! The loan and the car are different things.  You can't give back the car and be done with the loan, since you will typically be "[underwater](http://www.edmunds.com/car-buying/being-upside-down.html)" and owe more than the car is worth.  \n\n- Choose your spending wisely.  Money spent is unavailable for anything else. Make sure it was your highest priority use of that money.\n\nThat's all for now.  Stay tuned for the next installment, [ELI22](https://www.reddit.com/r/personalfinance/comments/4tlqsd/eli22_personal_finance_tips_for_older_young/), about more on these topics, as well as retirement accounts, repaying student loans, health insurance, and other such fun things.  "
  Self: "Could really use this for the netherlands..."
  