Hi, I’m a 20 year old but I don’t feel like I’m ready for the adult world

[scottyboyyy]

I just don’t know anything about credit cards, debt cards, loans, car payments, etc. I’m really worried that I’m not going to be ready for the adult world. Are there any YouTube channels that I could watch to teach me? Do you guys have any tips?
Thank you

 

[janedoe123]

@scottyboyyy Khan academy has courses you can take on financial literacy. It’s free and it breaks all of that down so you can learn at your pace and look into anything you may not fully understand.

 

[scottyboyyy]

@janedoe123 Thank you. I just checked it out and it outlines everything.

 

[pederson07]

@scottyboyyy Yes, Khan is pretty good. And congrats to you for realizing you need to know more, it's very common for people at this stage to make potentially life-changing mistakes.

 

[janedoe123]

@scottyboyyy You’re welcome! They also have a Personal
Finance and Finance and Capital course you can look into. While it may not be the solution to your worries it’s a really good start, good luck!

 

[grebel]

@janedoe123 This is a good answer. Khan is legit.

 

[optimisticbeliever]

@scottyboyyy tip: don't worry, be happy. Live below your means. Jump into the next thing as you're confident you're ready.

There's a lot of change that happens between leaving high school and starting actual careers. I went through college, met a girl, and had to move several hours away to take my big-boy job. Then engagement ring and wedding shortly after her college graduation. Cash in the bank is great for all this. Anything invested can lose value, so only be investing money you KNOW you will not be using before you're 30.

Credit cards: they are bill driven. if you get a credit card, the best strategy is to pay the bill once a month, in time, in full. The danger with credit cards is they want to suck you into using the card to buy for more than you can really afford, and you end up in a bind with high interest debt.

Credit cards are good for building a credit history...and you have a little bit more control in case of dispute. But a debit card operates mechanically the same with purchases -- it's just the money comes directly out of your bank account instead of getting billed for the total of credit card charges once a month.

Look into HYSA -- High Yield Savings Accounts. I use Discover Bank for a 4.35% savings account, plus CDs.

So, 20YO, what about you? Are you living at home with the parents? Completely separated from parents and funding your own life? College? Trade School? Working / starting a career?

 

[scottyboyyy]

@optimisticbeliever College, premed, living with parents at home. Thanks for the tips

 

[juliekay]

@scottyboyyy Since you're not a working adult responsible for completely providing for yourself, you still have plenty of time to learn the things you need.

It may sound complicated, but the basics aren't all that hard. Shouldn't take longer than studying for an intro bio exam.

If you want to get into all the details of everything finance related, that's much longer but also shouldnt be difficult. You've already been given guidance by others. Good luck.

 

[optimisticbeliever]

@juliekay I dunno. I think studying for an intro-BIO exam would be a lot harder for me... I've not done any biology since 10th grade -- and I started 10th grade when Jimmy Carter was president. At least this finance stuff I've been actually poking at in this millenium...

 

[cmay]

@scottyboyyy As a 25 year old who was in a similar position: start with the smallest, most necessary things right now and only move onto the other things when you’re confident. A checking account, debit card, and savings account should probably be your first priorities. If you have any loans right now (student, car, etc) figure out how those work and how to best pay those down. While you’re figuring them out, make monthly payments slightly higher than the minimum and don’t take on any more loans. Work out a monthly budget that accounts for these monthly payments and contributions to savings and stick to that budget.

And unfortunately I’d recommend not relying on people you know or family members to guide you. Many people honestly know very little about finances and (at least in the US) it’s become very normalized to have no savings and large amounts of debt.

 

[scottyboyyy]

@cmay Thank you

 

[mrsmorgansimpson]

@scottyboyyy Sharing a few:

• https://www.youtube.com/@financeconvos
• https://www.youtube.com/@Wallethub
• https://www.youtube.com/@FREENVESTING

 

[lovemultiplied]

@scottyboyyy Money guy show can be good a little bit more in depth though. While I’m not the biggest fan of his style or content, for someone with no context Caleb Hammer can be ok

 

[anointedevangelist]

@lovemultiplied I would suggest anyone over Hammer. He banned me from his sub for agreeing with constructive criticism to help improve his show by having guests on who are actually somewhat financially responsible. Aka make more money for himself by offering content that is actually helpful, as several others have been requesting the same. He’s an arrogant cunt, all about clicks and having ridiculous meltdowns now rather than offering any helpful advice.

Tirade aside, personally not a huge fan of money guy show. Several YouTubers are not a bad watch: Bob sharpe for beginner investing, John Liang is good at explaining how to choose a decent credit card and maximize its usage. Bits and pieces of Dave Ramsey can be good but overall his mantra of buying everything in cash is absurd.

 

[etherealember]

@scottyboyyy Live with your parents as long as possible and save as much money as possible during this time.

Study different investment strategies and find one that works for you. Read about compound interest.

I read recently about how buying $3500 of a stock in 1987 would be worth 1.2 million today. I remembered spending $11k on a car stereo system in the late 80's. I don't member anything about that stereo nor do I still have it today. I sure would remember an additional 3.6 million in a retirement account.

Good luck.

 

[scottyboyyy]

@etherealember Thank you

 

[ryan2240x]

@scottyboyyy Save everything you can, be frugal. Don’t sign up for any loans (get a cheap car for cash). Always pay off your credit card/make payments.

 

[mayadillion]

@scottyboyyy If it makes you feel better I'm almost thirty and same, it's a lot.

 

[athist]

@mayadillion Same at nearly 40