A moment comes in a teenager’s life when the era of being a youth ends and the problems of adulthood begins, and that is the 18th birthday. With the prospects of college and greater independence ahead, one of the most important things to consider is financial independence. Here are five financially smart things to do when you turn 18.

Open a credit card:
This is the best time to begin building one’s credit score. Get a credit card and make monthly recurring small purchases that are assured to be covered by money in the bank. Make sure to never miss any monthly payments and over time you become a more reliable person to lend to and your credit score will be higher when you leave college. This way, by the time university ends and car loans or home mortgages are needed, it is easier to get loans with lower interest rates.

Open a bank account:
There is a chance that you already have a bank account or a savings account under your parents’ name. The best thing to do is to open a new checking or savings account under your name. This is a crucial step in learning how to manage one’s finances and learn to deal with the ins and outs of having a bank account. It is also a large leap toward financial independence. “Establishing the state of financial independence is vital, especially to me as a teen, because it provides to my parents that I’m able to make good monetary decisions,” junior Okash Nakibinge said.

Create a budget and stick to it:
The future is full of planning and budgeting so it’s best to start learning earlier. Set financial goals accompanied by a budget and learn the complexities of spending money carefully and thoughtfully, a much-needed skill in the future.

Get a job:
The most important financial decision that one can take at 18 years of age is obtaining and managing an income. It is important to understand how to manage money to meet monthly or sudden expenses, and the best way to learn this is through a job with an income. This will force you to think about how you spend money and build a foundation for financial decisions in the future. “Having a job gives you independence and responsibility because it’s a lot harder to waste your money on food when you know that it’s equivalent to an hour of work,” senior Sina Jafari said.

Open an IRA:
When you turn 18 it is the best time to start saving for retirement. The longer your money earns interest the greater amount you will have for your retirement and later years to relax and enjoy life. Research the different types of IRAs and place your money in a safe and profitable account that will pay off during retirement.

Start Investing:
It is important to start building one’s investment portfolio when you turn 18 to build up valuable assets and learn how to invest and play with your money in the stock market. Many students already understand the value of investing. “It is smart to invest because you can let your money do work for you,” junior Artin Noori said.

Above all nothing is more important than proper research into the ways one can spend and save their money. With the end of high school, financial independence is a must, and a path toward greater maturity.