Even some basic bookkeeping and financial management is a good idea in your 20's. Keep track of what is coming in, and what is going out on a monthly basis. It helps deter you from dropping $1500 on a new TV on the spur of the moment.

You should be saving in your 20s, not spending.

It depends.

If your post-20's income is likely to much higher than your 20's income, then you should borrow and spend while you're young, healthy, and have the free time.

You should go to Paris in your 20's, not in your 80's!

Since I'm turning 30 in just two months, I feel a little behind on this list. As of next week I'll no longer have any credit card debt, but I still owe on my car and a large amount of student loans. (Luckily, they're deferred as I work on a master's part-time.)

The credit crunch and listening to Dave Ramsey has really made me want to get out of debt and do it fast. I don't want to end up like my mom, with a mortgage and a second mortgage and a lot of credit card debt in her 50's.

Tip #4 is a lie.

This article seems a tad too... extreme... It basically recommends that you aren't stupid and have some form of social aptitude. It's also been established time and time again in this and other personal finance sites that home ownership isn't the best option for everybody. I also agree with Rachmaninov, as long as you aren't stupid with your finances, if you can afford that Honda 1000RR, go buy it in your 20s because when you're 40 you'll be saying things like "i can't ride for too long anymore because my buttocks hurt"

What does that autobot transform into?

This makes a ton of sense to me, and I'm already on top of most of that except the planning for home ownership... Not really sure where I'm going to go with that after college. I know that one day I'm going to end up owning the family home, but that could happen at any point over the next 20 years or so (I'm in college now).

I'll run out and try to make friends with an attorney, pronto.

Aside from getting/staying out of debt the rest of this list is nothing utter palaver. As Rachmaninov1 noted above, isn't being young the time to do things you won't be able to do later? I taught English in Europe for a year when I was 26, and it was one of the best experiences of my life. That's something that is a lot less likely to happen when you're 40 and have a mortgage and children.

Also, beyond debt, the one thing people in their 20's could do to contribute to their financial well-being isn't even on this list: invest in a 401k or Roth IRA.

@rachmaninov1: completely agree & i would expand with, your 20's are the best time to make investments in your future (i.e. -> borrowing money for graduate school, professional certifications or to start your own business). making those investments at a young(er) age amplifies their value over time.

definitely put the credit cards away, unless what you are using them for generates future wealth (& no, that's not an endorsement to start your own business selling cutco door-to-door).

@outinthedark:
Delicious cake, obviously.

#2 is questionable too. There are plenty of resources out there that can help you determine if renting or buying is a better plan for you.

The New York Times has a good one. [www.nytimes.com]

The renter -> homeowner conveyor belt is a creation of government policy and conventional wisdom, that doesn't always work out to your advantage.

4. Give to charity. If you buy things to make yourself feel good, why not donate some money to charity instead. Won't that make you feel good?

Really? Giving to charity is a way not to fuck up your finances? I'm calling BS on this one. Yeah, it's a nice thing to do, but it doesn't help your finances.

I'm 30 and a half, have an Autobot icon, and have done all of those but #6. Good for me!

@rachmaninov1: You took the words right out my my mouth - I'm not saying that people in their 20s shouldn't be saving, but I think if there's any time it's okay to fudge a little on the savings is when you're not making as much as you will be later in life.

@K0MMIE: and what about the cake?

@rachmaninov1: This attitude is exactly why we're in the financial crisis were in. Spending money you haven't earned yet because you want to enjoy life now and simply assuming that some magical super-career will come along later to bail you out with a a high income.

Why would someone in their 20s need a lawyer or a tax preparer? If you are unmarried, childless, and mortgage-less, the hardest tax form I can imagine a 20-year-old needing to fill out is a schedule D (capital gains) or form 3903 (itemizing moving expenses). Neither of which require a tax preparer.

Unless you have vast assets already, what's the need for a lawyer or estate plan?

Even if you do have some combination of spouse/loinfruit/moneypit, use TurboTax (or whatever tax software package) anyways. Skip the lawyer (unless you plan on criminal activity) until you have beneficiaries, or something to actually pass onto them. A living will for a healthy person in their 20s is to me a very suspect use of funds.

@CaliCheeseSucks: I agree. I always see this answer on these save money things and it drives me nuts. You are essentially throwing away your money and getting nothing in return. No, I don't feel good about giving away my money to a charity that will keep 50% of it to pay their employees.

I disagree with #1 as well, to an extent. I use my credit card instead of a debit card to make normal, daily purchases and pay it off at the end of every month. No fees, and I get Amazon gift certificates when I spend a certain amount of money. I imagine I've made about $200 over the past two years.

As for number six, my mom is pretty much all those things, except maybe lawyer. She advises me on my finances like this: My mom filed for bankruptcy after divorce, and it was a living hell. So I think to myself "Never ever file for bankruptcy" and live life so I won't have to. I have low credit card debt and not-low school loans, but nothing I can't handle.

I disagree with number two as well, for reasons others have stated. If you're at the beginning of your career, you probably aren't going to be able to save much. Well, at least if you're a liberal arts major.

Why is give to charity always on these lists? If you aren't currently saving up to purchase a home or something, how does giving to charity help that cause?

Maybe I'm just a cold-hearted prick, but who really trusts giving away money to anyone that says "it's for a good cause?" If I want to be charitable, I'll do it myself instead of just throwing my money away to somebody that says they'll do it for me. Forget wasting your cash. If you want to do something charitable, donate time you would have spend sitting on the couch.

@dorianh49:

The cake is also a lie. Somebody ought to slap that lieing bitch GladOs.

I have nunchuck skills.

@K0MMIE: it is, how can I feel good about giving to charities when I need to worry about my own debt AND savings?!

@TheFuzz53: My favorite charity? Me.

The only tips I really agree with are #3 and #5.

For #1, most of my credit card debts, or debts in general comes from student loans and material purchase for my class. I personally think 20s is a time of investment, and to take out loans for school. I'll worry about savings once I actually start making money.

As for #2, with all those articles these days denouncing the American dream of home ownership, why are we promoting that in this list? Home ownership is not for everyone.

#4: NO. It's a nice thing to do, but I just don't see how that helps with my fiances.

#6 at this point of my life, it is more useful to know people in the IT field so I don't have to blow money on fixing computers with Geeksquad or the like than lawyers and tax people?

@Colage: so, its ok to buy that maser granturismo? HA! stick it suzy orman!

@CaliCheeseSucks: while i agree that charity wont help with your finances, cant you deduct it from your taxes and use that as a break? money going out is money going out.

@outinthedark: Literally? Poo.

Takes a while, though.

@CaliCheeseSucks: Throwing your money away means you're wasting your money. Giving it means YOU get nothing in return (except a tax-deduction) and someone who has less than you gets something they need. Give to the non-profit I work at and you're sheltering a victim of domestic violence, or providing materials for a consumer credit counseling class (a free service we offer) or giving a child a bed in a group home instead of a night in juvie. How do I get paid? It's sure not from donations. We make payroll by providing fee-based services, in addition to free social services.

So yeah, you can keep your money. Or you can find a cause you care about and donate a $100 this year. Which most people (even us underpaid non-profit workers) can afford. But you're kidding yourself if you think non-profits pay employees from their annual giving fund (cash they get from generous people.)

I've read this list in one form or another time and time again... and while it's all good for those of you who are still in your 20's what I'd really like to read about is:

"6 tips on what to do financially now that you're 30 and you already have a kid that you weren't planning for when you were 20 and you've had to file bankruptcy at 26 because you were 25K in Credit card debt because you didn't listen to what your parents and everyone who was smarter than you said 10 years ago and you're making a decent living now but still living paycheck to paycheck"

because I know more people in that type of demographic than the former... myself included

@Belabras: lol! most useless bot ever.

optimus: "autobots, roll out"
cakebot: "guuuuuys! wait up!"
sideswipe: "mmmm. cake. nom. nom. nom."

@CaliCheeseSucks: I agree. I love animals and have a few charities that I would give to if I could see that benefit in my taxes. But since I don't make a ton of money (in my mid-20s), and I take the standard deduction, I'm not giving to charity right now. And dammit, I need that money. I have a student loan, I want to go on vacation, I've got bills and all of that costs more since the economy is on the slide.

The tip should be donate your time to a charity, not your money. I'd give up a Saturday to socialize cats, but not a day's pay.

I'm wondering if maybe #4 is a cleverly hidden wealth distribution suggestion. Obviously, if we're saving as a nation, the poor aren't reaping our rewards (at least not as directly as some would hope).

On the credit cards. We, personally, make so little in our mid-twenties that it's tough to go credit card-free. We make enough to pay bills, save a bit, and get some goodies for ourselves each month. Though, instead of risking accidentally overdrawing our checking, or falling back on savings in a pinch (bad idea, by the way), we use credit cards for most daily purchases. It compartmentalizes and structures the random spending that occurs. It also makes it so much easier to see where we're spending our money (a surprising amount was on snacks on work days).

Having had success with this for a long time and paying little for it, I disagree with the notion that converting credit card charges to debit or cash transactions is more financially responsible, as the article implies. It only draws the checking account, your real source of money, closer to zero. It doesn't address spending habits (for instance, those snack charges turned into more frequent ATM withdrawals), especially if you need backup credit for "emergencies." Tips like "save each $5 bill" seem to work better. Discipline is paramount.

Home ownership is great and all, but what about that 20-something who saved up for a down payment and bought a house in 2006? Fucked now. (If he/she needs to sell.)

@leprendun: then here's a novel idea: pick a better charity.

note that this is not a "how to be rich" post, this is a "grading your maturity" post. giving to charity (whether it be time or money) reflects the desire within to do more than just work & leisure.

I kinda hate this list, and can tear apart each one of the overly broad, generalizing points made, but I'll just do a couple.

Credit card debt for me is my school loans sitting on a MUCH MUCH lower interest rate than Sallie Mae was trying to rape me for. Oh and the added bonus that if I want to pay the loan off early, I don't have to pay the additional interest that Sallie Mae would have still demanded had I paid off that loan early. Thanks SM, for screwing students.

Donate to charity? Really? Isn't the goal to save money? Look, I know people are in need, but if you're living on ramen and mac n cheez, you're going to be the one needing charity. I have a bit of extra money each year I donate to my local animal shelter in the way of going to the salvation army and buying a bunch of towels and blankets for the animals. I also buy a few huge bulk drums of food for them and donate some squeak toys. It makes me feel good without crushing my wallet and I know that the items will be put to use instead of the money possibly "disappearing."

While I'm at it, leprendun is right - have credit cards. Have several of them, with no annual fees. Keep them for a long time. Just don't run up a balance. Pay them off.

Put EVERYTHING on them. Purchase gum on them if you can. Then trade in reward points for cash, or a gift certificate to a store you ACTUALLY shop at, if its of better point-redemption value.

I just traded in 10,000 points for a $100 check and felt pretty damn good about it.

@bucklefilledbird: I knew people who had 10k of credit card debt when I was in community college, or more. This was a very young person, barely 20. He wanted to buy into a scam that would help him get rid of his debt and I had to take him to the office of a trusted professor so that he got an explanation of why he shouldn't do that!@TheFuzz53: @bucklefilledbird:

#2 is mostly bullshit. If you're under 30, and especially if you're still single, buying a house is not a good idea, although saving to buy one sometime in the future is fine.

I'm almost 30, but I don't plan on buying a house anytime soon. I've lived in three different states, the UK, and now I live in Norway. I don't know where I'll be 5 years from now, and renting makes it much easier for me to head somewhere else if the right opportunity comes along. Will I settle down eventually? Sure. But why be in such a hurry?

@TheFuzz53: I have a better feeling about giving a product to a charity than I do giving money to one. I would rather donate cans of food or toys to toys for tots, you have a better chance of the item actually getting into the hands of the person who needs it. Anyone can intercept a donation of money, and unless your giving an extremely desirable toy there is very little chance of your donation getting stolen. A 10$ donation in toys or a 5$ donation of canned food once a year isn't going to break your budget. The local food bank who actually gives back to the community and does not advertise would probably be very grateful for the donation.

Thanks to The Whitest Kids You Know, I could not read this article without thinking of Abe Lincoln shouting "NOW YOU F----ED UP!" in my ear, because, quite frankly, if I didn't have such a well paying job, I would be f---ed over 7 ways from Sunday.

They missed a huge one.

#1 - Don't rack up huge student loans when you go to school.

There are waaaaaaaaaaaaaay too many people that attend schools they cannot afford and/or their occupation afterwards will not be able to pay off the debt.

The school you graduate from may have an impact on your first job... after that, it's just pedigree. Education is important and should be a priority, but it is not a good enough reason to sink yourself deep in debt before you are 30. Many folks end up graduating and learn that they were living a better lifestyle while they were still in school.

7. Use birth control so that you don't potentially end up with unplanned and unwanted baby. Talk about fucking up your finances. That will do it big time.

8. Don't skip the health insurance. All it takes is one minor car accident to rack up some hefty medical bills.

9. Make friends with skilled laborers, and be willing to exchange services - exchange computer help for pressure washing or a flooring job or haircuts.

10. Don't get in trouble with the law. A DUI is expensive and embarrassing, and completely avoidable.

@MitchV: I attended public school and with half of my tuition covered by financial aid, I am still about $20k in debt. Unless you have parents who could afford to pay the tuition, most of us pretty much had to take out loans. Even a 40/hr week job usually wouldnt be able to pay for both fees for school and living.

Agree with all the comments on not donating money to charity. I'm sorry, but in this economy EVERYBODY needs to be saving every penny they can. Let the folks who don't worry about money donate.

If you do feel like being generous, at least donate furniture or clothing that you no longer need and don't want to go through the hassle of selling. Then you at least get a tax write off.

@Haltingpoint: I thought you got a tax write off for monetary charity donations too. No?

@MitchV: Tuition + room and board + mandatory fees at my state university, at in-state resident rates, went from $17,000 my first year to $23,000 by my fourth.

So that's $80 grand for state school. (Although admittedly I lived off-campus my senior year and used my $7/hr 30h/week job to pay rent and groceries,so my senior year cost less than my freshman year.)

Mmm-hmm.

Also I've been out of school for over five years. It's worse now.

@ZoeSchizzel: I know someone who doesn't "get" why she needs health insurance. Despite everyone around her telling her exactly why she needs it, she just won't do it. Night the brightest bulb in the box.

Another reason to have friends who are skilled laborers is that these friends can help you figure out which companies are good to do business with if you do decide to hire a company to fix something or install something. And they serve as a resource, even if they can't do the project themselves.

@CaliCheeseSucks: I feel like the point on this one is, rather than get into the habit of spending money on stuff you don't need as a high, maybe try giving money to a worthy cause instead? It's not about donating when you don't have money, it's about learning not to throw your money away to feel good.