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Services, Personal Banking, Online Banking, Personal Checking Article

Financial Literacy Tips to Prepare Young Adults for the Real World

Young man checking bank account

Preparing for the future can be overwhelming, especially when it comes to spending, saving, and learning how to live on a budget. According to a 2023 report by, less than 50% of states in the U.S. require a personal finance course to graduate high school and 75% of teens lack confidence in their knowledge of personal finance. Teens and young adults are eager to establish independence – nearly 90% have moved out of their parental home by age 27. However, managing personal finance can be daunting, with more than 50% of those who move out returning home at least once[1].

As the cost-of-living increases and inflation continues to climb, financial education is more important than ever. At Stellar Bank, we believe the right financial tools are essential to building the future you desire. In celebration of Financial Literacy Month, we’re sharing resources designed to help young adults create a solid foundation for financial success.

Building a Financial Foundation

Having a solid starting point when entering the workforce is essential to reaching financial success in the future. That is why Stellar Bank created courses to inform teens and young adults on the most important aspects of building a strong and stable financial foundation. There are several different financial points that demand attention when stepping out into the workforce.

One of the first steps in money management is to open a checking account for everyday access to your finances. According to a recent study from Fidelity, 49% of teens are opening bank accounts. Although half of young adults are taking this essential step, only 23% of teens feel confident in how much they know financially.

After opening a checking account, young adults will gain access to mobile and online banking for real-time insight into their spending habits. Forty percent of Americans prefer to utilize online banking, while 28% of Americans prefer mobile banking. Using these features is a convenient way to manage money, track spending and develop a plan for saving.

For more information on how to build strong financial foundations, visit the Stellar Bank Financial Education Center.

Managing Financial Health

To maintain healthy and stable financial foundations, it is important to understand the factors that affect financial well-being. Identity protection, budgeting, credit score monitoring and debt management are all factors that can lead to healthy money management practices.

According to, there is an identity theft case every 22 seconds with people between the ages of 30-39 being the most victimized. Identity theft can occur in a variety of different ways such as stealing packages off a porch or hackers gaining access to personal information through Wi-Fi.

Understanding and maintaining a good credit score is an essential piece of the financial puzzle when considering large purchases that may require a loan, such as a home or vehicle. Creditworthiness may also come into play when renting or leasing an apartment. According to Investopedia, the biggest factor that determines credit score is payment history at 35%.

Investing for the Future

On average, 62% of high school graduates enter college, but as the cost of university or trade education continues to increase, many students rely on financial aid to fund their college dreams. Stellar Bank offers courses to educate young adults on college funding options, emergency savings, preparing for job interviews and more.

According to,  84% of students receive some form of financial aid. Families will normally spend an additional $1,700 to $3,300 per semester on other college costs such as housing, parking and other student life activities outside of tuition. When assistance is needed in this area, there are options available: 529 savings plans, federal grants; work study programs; loans; and scholarships for students willing to apply.

Stepping into adulthood comes with challenges that cannot be avoided, such as car issues or job loss. This is where an emergency savings account can help ease your mind with finances. For example, an unexpected trip to the emergency room can cost up to $2,200. The best ways to save are to track expenses, create a saving habit, and limit spending as well as understanding that saving takes several months or years.

How Stellar Bank Can Help

Stellar Bank is committed to educating and equipping young adults with the tools they need to create a successful financial future.

Ready to get started? Browse our Financial Education Center and create a course playlist perfectly tailored to your needs.

[1] Bureau of Labor Statistics

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