2. Avoid Credit Card Usage

Young adults can be more susceptible to the attractions of credit cards than most. The combination of uncontrolled optimism with the need for so much stuff can get you buried deep in outsized balances in no time at all. Credit cards are a vicious cycle, because of the revolving term and the fact that it’s so easy to charge when money is tight. And interest charges are added on while the process flows on.

The best way to deal with a credit card problem is to avoid getting into it in the first place. Pay for your purchases out of income or savings, and if there isn’t enough of either, don’t buy at all. Know the difference between needs and wants.

3. Always Budget

You will not benefit from a detailed financial plan at age 18 but it is vital that you learn to budget for your expenditure and understand what your lifestyle will cost.

It may seem boring but knowledge is power and if you understand the cost of your time at college, you can factor this into negotiations with your parents, and/or arrange your loan financing appropriately, without any nasty surprises.

Another cliché that you will have heard is if you fail to plan then you plan to fail. So get constructing a simple spreadsheet now with your anticipated budget and check on the actual outgoings each month.