7 Money Lessons to Carry into Adulthood

You may have redecorated your childhood bedroom, changed your personal style, or drifted away from certain high school friendships. That is all part of growing up, as change and redirection are natural parts of life. However, some things you learn will stay relevant no matter your age. From budgeting and saving to managing student loans and credit, personal finance lessons tend to follow you well beyond college. Here are seven money lessons to keep in mind as you transition into adulthood.

1. Major purchases require research

Just as you wouldn’t commit to a college without making sure it offers your major, fits your budget with financial aid, or feels right after a campus visit, you shouldn’t make a major purchase without doing a little research first. Joshua, a Purdue University student, shares what he learned about looking into products before buying:

“I bought a VR headset with Christmas funds, which in itself wasn’t awful except I didn’t do proper research on brand and warranties. My mother attempted to coach me on how to make large purchases, but newly minted 18 year old me thought I had it all figured out. She advised me to look at reviews, do price comparisons, and shop around. She also advised me to check consumer reports for return issues and product defects. I did none of that and instead bought the first one I found. I was so excited to have my VR headset, and it worked perfectly so naturally I couldn’t wait to tell my mother how wrong she was. She just smiled and said I hope it remains so. And it did, for a week. Then it broke and in dramatic fashion (which I would have known had I bothered to read any sort of review on it). I spent $500 on this purchase, did not buy the warranty, and because it was an open electronic I bought online, was likely looking at not being able to return it. I didn’t tell my mother for two days because I didn’t want to hear I told you so, but somehow she knew anyway.”

Joshua P. Purdue University

2. Money boundaries are important

Money and relationships don’t always mix easily. It can be awkward to have financial conversations with friends or family, but setting clear boundaries is often necessary to protect both your budget and mental well-being. A University of Texas at Austin student reflects on why he wishes he had established stronger money boundaries sooner: 

“Senior prom was supposed to be one of those unforgettable nights out with friends. My group of 6 couples rented a limo so we could start the evening ‘in style.’ I somehow got selected to reserve it and the limo company required full payment up front. I trusted everyone would Venmo me their share, expecting reimbursement from each couple before prom. All of them did except one. One ‘friend’ repeatedly delayed. He said he would get to it, said his parents would give him the money soon, and made lots of excuses. I kept checking in, first in person, then by text and email. Despite my reminders and texts, he never paid me back for his and his date’s share. This was not just an important lesson about the money. It was a lesson about trust. I felt stupid, questioning the trust I had placed in our ‘friendship.’ It changed the way I viewed lending and borrowing among friends and even family. I realized I should have gotten all the money up front or maybe I should’ve had them all putting it in writing or an email.”

Austin W. University of Texas at Austin

3. Taxes are inevitable

Benjamin Franklin stated that nothing is certain but death and taxes. Taxes aren’t the most exciting topic, but they’re unavoidable once you start earning money. Audrey, a student at Ball State University, shares at time she learned the hard way why planning ahead for taxes is so important:

“While in college, I also worked as a hairdresser on the side to help pay for my education. As a young, first-time hairdresser, I made the mistake of not setting aside 15% of my income to cover taxes at the end of the year. Each week, I deposited a portion of my earnings into my savings account and watched it grow little by little. Even though I had been advised to save for taxes, I put all my money into one account and didn’t think much of it. I never imagined that when tax season came around, I would owe money instead of receiving a refund. When I had to pay $2,000, I was completely unprepared. It was discouraging to see such a large portion of my savings disappear.”

Audrey A. Ball State University

4. Cheaper is not always better

Just because something costs less doesn’t mean it’s the smarter choice. While saving money can feel like a win in the moment, a lower price doesn’t always offer the best value long-term. Nicholas from Marist University shares a time where he went with the cheaper financial decision (and ended up paying more for it later):

“One day, I wanted a pair of Airpods, however, the near $200 price tag filled me with anxiety. So instead I opted for a cheap, $50 knock off. When my package finally arrived in the mail I was filled with excitement, finally my own pair of ‘Airpods’, I could listen to whatever I wanted, wherever I wanted. Three days later, the cheap Airpods which didn't properly fit into my ears, slipped out and cracked against the hard wood floor. I was pretty devastated, and I regretted purchasing the cheaper version when, had I invested my money properly, I could have bought a sturdy, reliable pair that would have lasted me many years instead of a couple dozen hours.”

Nicholas S.  Marist University

5. Credit lines should stay open (generally)

You may be tempted to close a credit card you aren’t using, but that decision isn’t always in your best interest. Keeping your credit accounts open can be good for your credit score, as they contribute to the length of your credit history. A stronger credit score can lead to better borrowing terms, including lower interest rates on loans. A Palm Beach Atlantic University student, shares when a dip in his credit score was a cause for concern:

“One of the mistakes I had encountered financially was the time I closed my credit card to open up a new account for an enhanced credit card. I intended to utilize a credit card with better benefits and a higher monthly spending limit to continue increasing my credit score over time. The mistake I had realized was that in the eyes of the bank, closing a credit card is bad for your credit reputation, and in the span of a couple of months, I had lost over 60 points on my credit score, which was roughly about 2 years of credit building.”

Brandon L. Palm Beach Atlantic University

6. Scams are everywhere -- stay vigilant

Scams can take many forms, but their goal is always the same: to trick people into giving up money or personal information. You need to protect yourself, as scams can appear anywhere, from suspicious links and phishing emails to fake delivery notifications or phony online courses. A Berklee College of Music student shares a real-worldl world scenario of losing money to a scam: 

“I wasn’t even trying to buy anything. I was simply trying to sell my polaroid camera on a reputable online marketplace when someone messaged me, pretending to be an interested buyer. They sent me a link, claiming it was necessary to complete the transaction. The link looked exactly like the site I was using - I hardly gave it a second thought. Once I clicked on it though, it began asking for sensitive information - my debit card number, my account balance, permission to “verify” the account through a small transaction. I admit, I was a little skeptical about this, but since I had never sold anything online before, I assumed they knew more than I did…But before I knew it, every dollar - $290 - was gone. I remember staring at my banking app in shock, absolutely speechless. I had no idea what had just happened. I fought back panic and quickly called the bank to lock my card, then I called my mom for support. Thankfully, the bank was able to reimburse me, but the emotional sting of my mistake stayed with me. I realised how many red flags I had missed simply because I was uneducated and too trusting."

June P. Berklee College of Music

7. Have savings on standby

If you’ve ever lived paycheck to paycheck, you know how stressful it can be. Though money might be tight in college, even modest savings can protect your cash flow when your paychecks don’t arrive when you expect or expenses occur earlier than planned. Mary from the University of Mississippi shared a time she spent beyond her means without a safety net:

“Buying one expensive sweatshirt should not be a big deal, right? That is how it all started. I justified that spending $150 on a sweatshirt this one time was okay, even though I only had $200 in my bank account. It was Monday and I was sure the upcoming Friday was pay day. I just started my summer job lifeguarding that week, but with the hours I was scheduled to work I knew I should receive $300. Without thinking twice, I clicked “purchase” and was full of excitement for my on-brand Parke sweatshirt to arrive. Everyone had this brand, and I was ecstatic to join in with them. However, I soon realized that I had the start and end dates of the pay period wrong. I would not receive my first paycheck for three weeks! I then realized how irresponsible it was of me to have bought the sweatshirt and I would have to go tell my parents as well, because I could not make it three weeks with only fifty dollars in my account.”

Mary N. University of Mississippi

Growing up means learning, changing, and sometimes making financial mistakes, but that doesn’t end when you stop being a student. Although grown-up money management looks different than dropping spare change into a piggy bank, the core lesson remains the same: good habits can prepare you for what’s next. By taking these seven student experiences to heart, you can create a better financial plan, start working towards your financial goals, and feel more confident in managing your money as an adult.