If you’ve ever Googled “how to manage money,” you’re not alone. I’ve made my fair share of financial mistakes, especially as a first-generation college student with limited guidance. SO here are my top money mistakes I made as a teenager, and what I wish I knew sooner.
This guide is perfect for anyone searching for small, actionable personal finance tips, beginner money management advice, or just trying to build financial literacy as a young adult.
1. Keeping All My Money in a Checking Account
When I first started budgeting, I left all my money in my checking account. I didn’t think much about interest or separation between spending and saving.
Why it’s a mistake: Checking accounts don’t earn interest, which means your money just sits there.
What I learned: I opened a high-yield savings account and started transferring any non-essential funds. It was the easiest way to earn passive income on money I already had (no investing required.) It’s a smart first step if you’re looking to grow your savings without taking risks and super easy to set up.
2. Relying Too Much on My Debit Card
I thought using my debit card was safer than credit. I could only spend what I had. Simple, right? Until I experienced fraud and my checking account got locked for nearly a week.
Why it’s a mistake: Debit cards have limited fraud protection, and using them for everything can leave you financially stuck.
What I learned: I started using a credit card for recurring charges and built credit while keeping my checking account secure. Just be sure to pay off your credit card in full each month to avoid interest and debt.
3. Not Having a Budget
As a teen, I didn’t think I needed a budget because I didn’t make much money. I just spent what I had without keeping track, thinking it wasn’t a big deal.
Why it’s a mistake: Without a budget, it’s easy to lose control of your money, overspend, and miss out on saving for important things.
What I learned: Even a simple budget can make a huge difference. Tracking what you earn and spend helps you make smarter choices and reach your goals faster. There are many guides online, but one of my favorites is Bank of America’s guide to creating a budget, which you can find by clicking here.
4. Avoiding Credit Because I Was Afraid of Debt!!!!!!!!!
I can’t emphasize this mistake enough. I was scared of credit cards and avoided them completely. I come from a family where we are taught to save and save and completely avoid debt. I saw credit cards as a liability. But by not building credit early, I was limiting my future financial options.
Why it’s a mistake: You need credit to rent an apartment, buy a car, or even get a job in some cases.
What I learned: I applied for a beginner-friendly credit card, used it for fixed monthly bills, and paid it off completely each month. This helped me build a strong credit history with no risk of debt. Check with your current bank on student credit cards (great for beginners.)
5. Trying to Help Everyone Financially (Even When I Couldn’t)
Saying “yes” to every financial request from friends or family, even when I couldn’t afford it, put me in a tight spot more than once. I loved donating to charity, treating my sisters to a sweet treat, and giving and giving even when I couldn’t.
Why it’s a mistake: Over-giving leads to stress and financial instability.
What I learned: Setting financial boundaries isn’t selfish, it’s smart. Now I offer non-financial help when I can and support others in ways that don’t jeopardize my own future.
Final Thoughts: It’s Okay to Learn as You Go
Whether you’re searching for “how to start saving as a college student” or “financial tips for young adults”, remember: you don’t have to be perfect to be financially responsible. Mistakes are part of the journey. What matters most is learning from them and taking action now.
Have you ever made one of these money mistakes? What did you learn from it? Let us know in the comments!
If this helped you, don’t forget to subscribe and stay tuned for my upcoming posts.
See you in my next post ;)⭐️
– Estefany
The Generational Shift 
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