Top Money Mistakes That Young Adults Make

When you’re in your 20s, making regrettable financial decisions may be the last thing on your mind.  After all, you’ll never have a better body, higher libido, or bigger dreams than in your starry-eyed youth. Yet the personal finance choices you make before you hit 30 can affect you for decades to come.

1. Living Off Student Loans

Taking out as much as you can in student loans is easy. Paying those loans off, not so much. It’s a bad idea to apply for more money than you need so you can buy a car, study on better furniture or live in an off-campus apartment.

2. Failing to Repay Student Loans

U.S. Student loan debt was nearly $1.5 trillion in 2019, with around 11% of total student debt more than 90 days delinquent or in default, according to the Federal Reserve Bank of New York.

3. Ignoring Your Credit Score

Making late credit card, student loan, car and other payments more than 90 days late can drop your credit score, the rating creditors review before extending credit. Landlords and employers look at your credit score, too. A good credit score is 670-739 and excellent is 800 and above.

4. Choosing Bad Roommates

Your best friend may be a blast for a night of clubbing, but will she pay rent on time? That guy from school plays a mean game of basketball, but can he hold down a job? Pick a deadbeat roommate and you could pay for it later with your credit score.

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