Managing your money in your late teens or twenties can feel like solving a puzzle with missing pieces. You deal with rent, student loans, and social events while trying to plan for the future.
It’s concerning that one in three adults in the UK aged 25 to 34 have “negative wealth,” meaning they owe more than they own.
The good news is you don’t need a finance degree or a high-paying job to start making smart decisions.
Whether you’re in school or starting your first job, this list will help you build a strong financial foundation, simple and achievable steps that anyone can take.
Financial Checklist for Young Adults in the UK
Here are some financial checklist for young adults in the UK:
1. Start with a Simple Budget
If you take away one thing from this article, remember this: budgeting is your best tool. You don’t have to make it complex. Just write down what you earn and what you spend.
You can use apps like Monzo or Emma or even a simple spreadsheet to monitor your money. Try to split your earnings into three areas:
- Needs (like housing, utilities, and groceries)
- Savings
- Fun
The goal isn’t to restrict yourself as it’s to make sure you don’t run out of money just a few days after payday.
2. Understand and Build Your Credit Score
Your credit score may not seem important right now, but it will matter when you want to rent an apartment, get a mortgage, or sign a smartphone contract. In the UK, you can check your score for free with services like ClearScore or Experian.
To build a strong score, you must:
- Pay your bills on time.
- Register to vote.
- Keep credit card use low.
Avoid late payments and hitting your credit limit, as these can hurt your score.
3. Open the Right Bank Accounts
Start with a good current account that has strong mobile banking features. As a student, look for student accounts that offer perks like free railcards or interest-free overdrafts.
Next, open a savings account. Even saving just £10 each month helps you build a habit. Some banks offer savings pots that allow you to set aside money for different goals, like vacations or emergencies.
4. Start Saving Early, Even Small Amounts
You do not need a lot of money to start saving. Aim to set aside £500 for emergency savings. This money should only be used in real emergencies.
If you are thinking about buying a home in the future or saving for retirement, consider a Lifetime ISA. You can save up to £4,000 each year, and the government gives you a 25% bonus. This is free money if you use it for your first home or retirement.
5. Learn the Basics of Taxes and Payslips
Getting your first payslip can be confusing. You might notice that the amount is less than what you expected. This usually happens due to income tax, National Insurance, and student loan deductions.
Check that your tax code is correct. If it’s incorrect, you may be overpaying taxes. You can check and change it through your HMRC account. If you find something unusual, talk to your employer or HMRC. It’s better to sort it out now than wait for a long time.
6. Know the Difference Between Needs and Wants
Fast spending happens to everyone. It’s easy to convince yourself that you need that takeout or those sneakers. However, it’s essential to distinguish between what you need and what you want.
Tip: Try the 24-hour rule. If you see something costly, wait a day before making a purchase. The urge to buy might go away, helping you save money.
7. Plan Ahead of Big Expenses
Have you planned a vacation or thought about buying a vehicle? Make a plan instead of just going with a flow. Break down the total cost into monthly savings goals.
For example, if you want to save £600 for a holiday in six months, set aside £100 each month.
Apps like MoneyHelper or Plum can help you save automatically. This way, the saving happens in the background, making it feel less painful.
8. Get the Right Financial Advice When Needed
You don’t have to handle everything on your own. If you have questions about student finance, expenses, or loans, reach out for help. Your university may provide a student financial advisor, or you can get free advice from Citizens Advice.
There’s a lot to think about when you’re just starting out – from building credit to figuring out how much to save. Reading up on basic financial advice for young adults can help you avoid common mistakes and feel more in control.
9. Protect Your Future with Basic Insurance
Many people do think insurance is only for older individuals, but it is smart to have basic coverage. Here are some types of insurance to consider:
- Contents insurance if you rent your home.
- Mobile insurance if you rely on your phone.
- Travel insurance for tips abroad.
These insurance options help you bring peace of mind.
Conclusion
Managing your finances can feel overwhelming at this time. Every small action you take today, like putting £5 in a savings jar, checking your credit score, or resisting an impulse buy, helps you build a safer future.
Financial success does not happen overnight. It develops through regular habits, smart choices, and a bit of patience. Be kind to yourself. By reading this, you’ve already taken the first step, and that’s something to be proud of.