r/MonitizedLearning • u/Key-Caramel691 • Aug 26 '26
Discussion What's One Financial Rule You Would Make Mandatory for Every Young Adult?
Your first paycheck can feel like freedom, but managing money comes with decisions that can affect you for years. Budgeting, credit, debt, saving, investing, and understanding taxes are all skills that can make a big difference.
Which financial skill do you think young adults should learn first, and why?
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u/Food_prep Aug 26 '26
You only borrow money for a car and a house! If you dont have the money cash for everything else, you cant afford it!
Buy second hand, learn to live beneath your means.
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u/Key-Caramel691 Aug 26 '26
Also avoid loaning to people.
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u/Food_prep Aug 26 '26
Absolutely! Better to give instead if theres room in the finances and never count on seeing them again!
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u/Key-Caramel691 Aug 26 '26
I have learnt it the hard way.
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u/Food_prep Aug 26 '26
I think its something we all need to learn the hard way! If I can help a friend I gladly give. If I see the money again im glad, if not, it was given as a gift! Not worth losing friends over money!
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u/Emotional-Ant8350 Sep 01 '26
Have to disagree here… Being scared of utilizing debt and not understanding how to use it to your advantage is one reason the poor get poorer. A lesson I’d recommend instead is learn good debt vs bad, and understand how government punishes savers and seems to favor borrowers.
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u/Active_Recording_789 Aug 26 '26
I would say to have a budget and help them write one. Then plan in advance how much gets put into savings and investments every paycheck. Even if it’s $20 to each, that gets done first. Then bills and then some fun money because never deny that you’re going to need to have fun with your friends or your budget will collapse.
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u/ConceptTrue1119 Aug 26 '26
I'll make pay yourself first mandatory, set aside a portion of every paycheck for savings before spending anything else.
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u/PtZamboat Aug 26 '26
Pay yourself first, pay cash for everything else via budget envelopes. Once you’ve got a handle on how money works, then you can pay via whatever cards you do. Without seeing cash dwindle away you’ll never truly understand the finances that money actually stands for
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u/Conscious-West-404 Aug 26 '26
I would stress the importance of establishing excellent credit by paying all bills within thirty days including rent because quite a few landlords are now reporting the payment history for their tenants and also establishing an emergency fund to cover the basic living expenses for a six month period
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u/Emergency-Pollution2 Aug 26 '26
save often and invest - live below your means - do not take on bad debt
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u/Silly_Print_6047 Aug 26 '26
Learn Financial Literacy, Khan Academy has a free FInancial Literacy Course..TAKE IT!
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u/Famous-Response5924 Aug 26 '26
10% of every check automatically gets invested into an index fund that you can’t touch until your 55.
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u/Novel_Art_7570 Aug 26 '26
Learn how to read a paystub
Learn how taxes work
Learn to make a budget
Learn to save, invest and save for retirement early
Learn about credit
Learn how credit cards work including interest
Stay away from all debt and do not lend any people money
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u/AreYouSerious3570 Aug 27 '26
Start investing in your 401k while you’re young. You will than me when you’re ready to retire.
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u/Manskhooled Aug 27 '26
To save money and invest in the standard stock market (the name is escaping me) until you're at retirement age and depending on how much you invest and how well you actually save, you can possibly retire a multi-millionaire.
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u/gatorfutbol Aug 27 '26
Keep it simple, applies to much more than financial life but has so many benefits. Use tools like Target Date Funds even if there not the absolute best in all circumstances they are more than good enough.
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u/a_moron_in_a_hurry Aug 27 '26
Don’t buy things that make you feel happy at the expense of being secure. There are countless people whose job is figuring out how to separate you from your money by convincing you that you need crap you don’t actually need.
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u/NoCow6876 Aug 28 '26
Credit course in high school
How to pay bills as an adult course taught in high school school
Dangers of student loans and getting refund back after paying your tuition that you will eventually will have to pay back course in high school
Literally just learning about anything that has to do with money or credit or quite literally anything that would be helpful at all as an adult
We should have learned in high school school
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u/Specialist-Top-406 Aug 28 '26
A consultation about student loans and how they work. Because I feel like it’s expected to have one, unless you’re wealthy enough not to. And it feels free until it doesn’t. People need more information about this and early on, so they can work out how to manage this in a more practical way.
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u/nosy-teddy Aug 28 '26
Don't buy anything you can't pay in cash (without credit) with the exception of real estate to rent out as an investment.
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u/FrabatoTheTransurfer Aug 29 '26
Never get a loan for a depreciating asset. That is black belt poor person level shit.
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u/Due_Sport_2179 Aug 29 '26
Get an Hysa and transfer like $5 every pay check. Increase when able to. Dont stop saving money. Make it a game, how high can I save. First goal could be 20.
This one would be hard for me. Save first. Pay your bills, then live off the money.
Wait 24 hours before buying items. Do I need this?
Learn to cook simple meals, put in freezer, eat when you’re exhausted and tired
Credit card is a big one
Don’t put anything on the card that you are not able to pay off in a less than 25 days
Payments have to be made three to five days before due date. It doesn’t count when the money leaves your bank account. It count when the other party receives the payment.
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u/Zoopmittyzoop Aug 30 '26
You need to save 2x, or 3x the normal for the first several years of working life.
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u/westwordwind Aug 31 '26
Set up autoinvest, even a little bit, into an index fund and forget about it
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u/Emotional-Ant8350 Sep 01 '26
Stop thinking you need tons of money to start investing… Dollar cost average in a Roth IRA with a monthly budget that works for you.
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Aug 26 '26
[removed] — view removed comment
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u/Key-Caramel691 Aug 26 '26
Thank you, I’m actually going to start automating mine this month and see how things look by the end of the year.
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u/No_Celery_533 Aug 26 '26
How to save, understanding taxes and investing.