As children enter adulthood, their financial world expands quickly. Renting an apartment, buying a car, managing bills, building credit all becomes real. The groundwork laid throughout childhood makes this transition easier, but there are key final steps every family should take.
Teach the Importance of Credit
Credit affects nearly every major financial decision.
Work together to review your own credit report as an example. Discuss:
- How credit scores are calculated
- What raises or lowers a score
- How long financial decisions stay on a report
This transparency helps young adults understand how to build (and protect) their financial reputation.
Create a Realistic Budget Together
A budget isn’t restrictive—it’s empowering.
Help your young adult identify:
- Fixed monthly expenses
- Flexible spending
- Savings goals
- Seasonal or occasional costs
Planning ahead reduces financial stress and provides clarity during their early adult years.
Protect Their Financial Identity
Identity theft often goes undetected for years, especially when a child’s clean Social Security number is used fraudulently.
Watch for warning signs:
- Suspicious bills or credit offers
- Account changes
- Strange transactions
If fraud is detected, contact all three major credit bureaus, the FTC, and the Montana Office of Consumer Protection for support.
Start Their First Long-Term Savings Tools
Whether it’s a Student Savings Account, IRA, or workplace retirement plan, now is the time to help build lifelong habits.