The title isn’t meant to insult anybody, but more to just wake everybody up to the fact you are in fact a legal adult. Your parents no longer have to provide you with anything. Legally, you’re held accountable for any crimes you commit. When it comes to planning your future, it’s your decisions that count.
Turning 18 is about taking responsibilty for the choices you make. Run up $20,000 dollars are your new, shiny Visa card? You are paying it off. Agree to a $400 dollar per month car payment? You are responsible for sending in the payment every month. Decide to take out students loans to go to a pricy private school instead of your public state school? You will be paying for it.
The point of this isn’t to scare you, but to inform you. While you are free to do all of the above, you are also free to do things differently. You can start saving for retirement at a young age, building credit wisely, and creating a better future.
So I ask of you to wake up and realize the world is yours for the taking. By not getting into debt, you can pursue opportunities you wouldn’t otherwise have. You can put yourself before payments to a bank. You can get a jump start on success by doing the things your elders wish they would have done sooner. It’s time to plan for the future and make decisions that you think are best, not ones based on what other people think.
As an example of my last point, I’ll explain why I opened a savings account at ING Direct even when my dad said I shouldn’t. My father, while an awesome guy, does not get technology. Sure, he uses the computer for email and Google Maps and well…that’s about it. So when I told him I wanted to open up a savings account at an online bank, our conversation went a little something like this:
Dad: “An online bank? With no branches? All done using the Internet? Haha! It’s probably a scam. They’re going to steal your money!”
Me: “Yes, Dad, an online bank. They have some branches…four or five in major U.S. cities. But yeah, day to day banking is done through their website. It’s not a scam. They can offer higher interest rates because they don’t have to build branches or employ tellers. They aren’t going to steal anything…”
Dad: “Still sounds like an Internet scam.”
Me: “Whatever.”
But I didn’t just throw my hands up in the air after that. I researched ING Direct more. I found tons of bloggers who had accounts there and they loved it. No con had been pulled off. Then, I found out that ING Direct had been around since the year 2000 and their parent company had been around for even longer. They were one of the 1st online banks and they seemed to be doing it right.
My dad still wasn’t completely swayed, but he nonetheless allowed me to sign up for the account (I was 16 at the time and had to open a joint account with someone 18 or over).
My dad wasn’t lying to me, but he just isn’t a huge fan of online banking. To him, banking is something you do at a physical office. Everybody, including parents, has their own set of experiences and views. These might not always align with the best option for you.
Financially, remember that you no longer need your parents permission to do anything. You are free to open up a savings, checking, and credit card account. This is an important realization to make because it appears that so many adults still rely on their parents for financial advice and are afraid to figure out things for themselves. Ask your mom or dad for advice sure, but don’t accept it blindly.
Take home message: You’re an adult now and can finally live your life according to how you see fit. Don’t mess it up.
If you’d like, you can jump forward to the next post in this series: Open a Credit Card.
