Everyone is familiar with the famous saying of, “you live and you learn,” which rings true especially when it comes to dealing with finances at a young age. When you are younger and first starting to make your own money, it can be equally exciting and overwhelming. If you do not have financial goals and a plan, you may start to lose track of the money you are bringing in and may find yourself overspending. Here are a few of the top money mistakes that young people often make, and how you can ensure you avoid them:

1. Waiting to build their credit. The earlier you start to build your credit, the better. No one is born into good or excellent credit, and everyone must work hard to build it up as best as possible. At a young age, it is worth getting a credit card to use for emergency purchases or smaller purchases such as gas for your vehicle. This will help teach you how to make timely payments, avoid spending too much, and will build your credit!
2. Drowning in credit card debt. If you do choose to move forward with getting a credit card, it is vital that you are only charging what you know you will be able to pay off at the end of each month. The more you rack up your credit card bill, the more interest you will owe, which will ultimately leave you drowning. Make sure that you are only making small purchases to start, and that you will be able to fully pay it off when your bill comes.
3. Forgetting about an emergency fund. Having fun at a young age is extremely important, but at the same time it is important that you do not forget about saving an emergency fund. Whether your car breaks down or you find yourself facing an unexpected medical expense, having some extra padding in your checking or savings account is always a smart idea. Even saving as little as $20.00/week is helpful – every penny counts!
4. Not starting to save for retirement. As soon as you are able to set up a retirement savings account, take advantage and do it! If you do not begin saving for retirement, it will haunt you in the long run. Just like the emergency fund, every penny counts, so even if you find yourself unable to save a significant amount, something is better than nothing.