June 2025 
Managing money in your teens and early 20s can be tricky—but building good habits now can set you up for a lifetime of financial success. Unfortunately, small mistakes made early on can lead to bigger challenges later.
Here are some common money mistakes young people make—and how to avoid them:
1. Not Budgeting or Tracking Your Spending
It’s easy to lose track of where your money goes, especially with food delivery apps, subscriptions, and impulse buys. Without a budget, you might spend more than you realize.
Avoid it: Use a free budgeting app to track spending. Create a simple budget that includes savings, essentials, and fun money.
2. Ignoring Savings—Even Small Ones
Many students think they’ll start saving “later” when they make more money. But getting in the habit now—even with just a few dollars a week—makes a huge difference.
Avoid it: Set up a direct deposit from your paycheck or an automatic transfer from your checking account to your savings account. Aim to build an emergency fund with at least $500 to start.
3. Misusing Credit Cards
Credit cards can help build credit, but they also make it easy to overspend. Carrying a balance means paying interest—and it can add up fast.
Avoid it: Only charge what you can pay off in full each month. Make payments on time, and don’t max out your card. If you're new to credit, consider a student or secured card.
4. Taking on Too Much Student Debt Without a Plan
Student loans can be a smart investment—but only if you borrow wisely and understand your repayment options.
Avoid it: Research all financial aid options, including scholarships and grants. Borrow only what you truly need, and know what your monthly payments will look like after graduation.
5. Not Building Credit Early
Your credit score affects everything from renting an apartment to getting a car loan. Many students don’t think about credit until they need it—and by then, it’s too late to build a strong score quickly.
Avoid it: Start building credit responsibly with a student credit card or by becoming an authorized user on a parent’s card. And remember to always pay bills on time.
6. Spending to Keep Up With Others
Social media and peer pressure can make you feel like you need to spend more to fit in—whether it’s clothes, vacations, or the latest tech.
Avoid it: Focus on your own goals. Everyone’s financial situation is different, and real wealth is built by living below your means, not above it.
7. Not Asking Questions About Money
Many students feel uncomfortable talking about money, so they avoid it altogether. That can lead to confusion, debt, and missed opportunities.
Avoid it: Talk to a trusted adult, teacher, or banker. Ask questions, attend financial literacy workshops, and don’t be afraid to learn as you go. You don’t have to know everything—you just have to start.
The Bottom Line
Your teens and twenties are the perfect time to learn how to manage money the right way. Avoiding these common mistakes now can help you build confidence, avoid stress, and reach your financial goals faster.
Have questions about saving, budgeting, or starting your financial journey? Browse through our website or stop by any Waukesha State Bank location—we're here to help you succeed.