Inclusion Project Age of Majority Guide: Financial Responsibility

Finances now that you’re becoming an ADULT... Here’s how you can get READY!

When you turn 18, you have more rights and responsibilities to take care of your money. You have the right to do things like get a credit card or sign a contract, but you also have the responsibility of making smart choices. It’s important to talk to your parents and other people you trust about what kind of help you will need.

Additional Information: Making good financial decisions can be complicated. It’s important to talk with people about how to manage your money. Here are some words you should know:

• Budget: A plan for how much money you will earn, spend, and save.

• Checking Account: A bank account where you keep money for everyday spending.

• Debit Card: A debit card takes money out of your checking account.

• Savings account: A bank account where you keep money to save for bigger purchases.

• Credit Card: A credit card lets you buy something with borrowed money. YOU HAVE

TO PAY THIS MONEY BACK.

• Contract: A contract is a legal agreement that you must follow.

A way to manage your money is to develop a plan for your spending. This is often called a budget. A budget is a tool that will allow you to manage your own money. It helps you keep track of your expenses, as well as how much money you have to spend.

Besides budgeting, there are other ways for people to support you to manage your money. When people turn 18, they often open a checking account at a bank. This can be overwhelming and scary for some people.

One option is to open a joint checking account. This means that someone will share the account with you and can help you manage your money.

Why is it important: “Save up as much money as you can for future plans.”

What advice would you give your younger self?

1. Know how to budget

2. Know how to save

3. Know how much things cost

4. Control impulse buying

When you turn 18 you will be in charge of managing your own money. It is important to recognize this as a responsibility, but realize that you are not alone and there are ways thatpeople can support you along the way.

Finance Terms

Budget: A plan for how much money you will earn, spend, and save.

Checking Account: A bank account where you keep money for everyday spending.

Debit Card: A debit card takes money out of your checking account.

Savings account: A bank account where you keep money to save for bigger purchases.

Credit Card: A credit card lets you buy something with borrowed money.

Contract: A contract is a legal agreement that you must follow.