5 Mistakes Young Adult Make With Money
Face it—adulthood hits fast. One minute you’re stressing with deadlines, and the next, you’re choosing insurance plans, paying rent and figuring out how to survive your paycheck.
Most financial struggles don’t come from laziness, it is the reflection of your lack of guidance.
Before you start blaming yourself or people around you, financial illiteracy is curable when you start taking action to fix it!
When you don’t have the right manual to manage your money to begin with, mistakes are bound to happen and remember, they are essential as a part of your life. Within our mistakes, valuable lessons are waiting to be applied. It’s up to you on how you decide the status of the mistakes, either lift you or lock you down.
Here are the 5 mistakes that are commonly made by beginners who start financial management:
1.Thinking the Minimum Payment is “Good Enough”
When the paybill of your credit card comes, there will be a time you’ll get shocked and pretend to calculate, what could possibly be that outstanding amount when it obviously comes from your splurging spending.
Your eyes will catch the shining amount of the ‘minimum payment’ and move on with it for now. But what you didn’t know is that a small payment doesn’t reduce your debt—it stretches it. The interest quietly builds up like a fog and eventually, you’re stuck with the new amount.
Always try to pay more than the minimum payment. If you’re struggling, call your bank and ask for a balance transfer plan—you might get 0% interest promo for a few months!
2.Buying Tech or Gadgets on Installments Without Reading the Fine Print
It starts with a phone upgrade. “Only $15/month!” Sounds easy, right? But over time, that turns into $20 for a phone, $50 for your iPad, and $85 for your laptop.
Suddenly, your salary is tied up in monthly payments for things you don’t even use daily. Installment plans often come with hidden fees or high interest if you miss one payment.
And now, you’re locked in—for years.
Before you say yes to any “easy payment” plan, calculate the total amount you’ll pay by the end of the term. If it’s more than you expected, pause. Could you wait and buy it outright later?
Is it a want or a need?
3. Spending Without Tracking (a.k.a. the Money Mystery)
You think you’re doing fine. You didn’t buy anything “big.” But somehow, your money just… disappeared?
Spoiler alert: It’s not black magic. It’s food delivery, random shopping hauls, extra Grab rides, and $7 lattes stacking up like Jenga blocks.
Track your spending for one month—just one. A lot of “I deserve this.” moments are no longer worthy when you spend like there’s tomorrow. Use an app or even your phone's notes. You’ll be shocked where your money goes. Awareness is free, but the returns are huge.
4. Not Knowing What Retirement Plan Can Actually Do
By ignoring it, you miss opportunities. You don’t review how your money is invested. You don’t increase voluntary contributions. You don’t even check your account balance.
Don’t just think of it as “just for retirement,” and ignore them until you’re 50+. There are many uses—like education, house buying, and emergencies.
Log in to the appropriate apps. Learn the basics. If you’re freelancing or unemployed, make voluntary contributions to still build your savings. It’s your money—don’t leave it in the dark.
5. Saying Yes to Every Social Plan Because of FOMO
Friday dinner. Saturday brunch. Sunday movie night. A bit here and there. Before you know it, your weekend costs you half your week’s income.
You don’t want to seem “cheap.” You don’t want to miss out. So you keep saying yes—even when you’re struggling inside. The feeling of being left out sucks, we all know that, but when it costs you three months to pay it off.
Is it really worth a 3-month commitment for a short time show-off?
You don’t have to say no to everything—but learn to say, “Not this time.” True friends understand. Set a fun budget and stick to it. There’s no shame in choosing peace over pressure.
Being young and earning your own money is empowering—but that power needs direction. No one expects you to be a financial expert overnight. But by avoiding these five common mistakes, you’re already ahead of the curve.
If you still feel that financial management seems like a punishment and a restraint for yourself, check out my post Financial Freedom Starts With Your Mindset.