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Heading to College or Your First Job? Avoid These Common Money Mistakes

NBC 7 Responds spoke with financial experts to see what some of the most common money mistakes are, especially for young adults

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Young adults are heading off to college or starting new jobs after graduating.

Between student loans, credit card applications, loans and rent, there's a lot to deal with when you move out of the house. Keeping that hard-earned independence relies on strong money skills.

Before you even fill out an application, check your credit report. People often try to steal the identity of children, so make sure you know of any issues and fix them as soon as possible.

"First, pull your credit report," said Felipe Arevalo, with the San Diego Financial Literacy Center. "Make sure even if you haven't been using your credit before, you don't have anything on there that doesn't belong to you. That can put you behind everyone else before you even get started."

When looking for apartments, Arevalo said, be sure to tour the place in person. There might be some offers you can't get online.

Make a list of everything you'll need for your new home: furniture, appliances, even laundry detergent and condiments. It can be overwhelming when we see how much it can take to fill a home — or just a fridge. A list should help you make the most economical choices.

"Start a budget," Arevalo said. "People are going to say, 'He's talking about budgets again,' but it really is one of the most important things people can do. It's the foundation for everything else."

If you're looking to get a credit card, shop around.

"Don't go applying for the first pre-approved offer you get in the mail," Arevalo said. "Do your research. Find out what credit cards work best for your financial situation."

Remember: It's a credit card, not a debit card. It's a loan you have to pay back with interest, not money you have to spend.

"Differentiate needs and wants," Arevalo said. "You probably need a couch but want a PS5 and big TV."

A great way to cut down on costs? Learn how to cook, even simple meals. Going to the grocery store once a week is a lot cheaper than eating out every meal.

Also, open a savings account as soon as possible.

"Save $20 every paycheck," Arevalo said. "Pay yourself first, put that money in a saving account and take care of your expenses."

If you're looking to get a car, ask your bank about loans before going to the car dealer. Sometimes they have better interest rates for customers than you can find at the dealership.

Once you're set with a loan or credit card, or a new bank account, freeze your credit. To do that, you can contact the three credit reporting bureaus, Experian, Equifax and TransUnion. It will prevent someone else from opening up accounts in your name.

Most important, Arevalo said: Remember that we never finish learning and making mistakes. Learning as you go is OK, but it's best to prepare yourself as much as possible.

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