Most millennials are now in their 20s and 30s, beginning a career advancement and also the time when they are making important financial decisions. These financial decisions may include home ownership, investment strategies, and family planning. You certainly want to try to avoid some of the financial risks that have occurred in the lives of previous generations.

Financial literacy is rarely taught in school, so if you didn’t learn it at home growing up, your first time in the “real world” could land you in financial trouble. Read below for some of the top financial tips that will help millennials make smart financial decisions.

Take online money management courses

Since most millennials excel in technology, I’d suggest enrolling in basic economics, accounting, and budgeting courses. These types of courses can be very affordable and very well taught by the online teacher. I feel that this is a very efficient way to get updated on financial topics that can simplify and improve your financial life.

Build your retirement savings

Did you know that Wells Fargo revealed that almost 50% of millennials were not planning for retirement? Be sure to participate in your employer’s 401(k) plan, even if you can only contribute the minimum each month.

Make a list of your entire financial picture

I recommend you make a list of everything that is spent each month. After you have digested this information, ask yourself this question. How am I going to pay for all this? There are also four essential things that everyone should know about their finances: income, expenses, assets, and liabilities. Having a firm understanding of these items will help you understand your finances. There are many online tools that can help you connect all your accounts: Mint, Quicken, just to name a few. I believe this is your first step in improving your finances.

Investigate passive income opportunities

Most of us work for money all our lives and never really put it to work for us. It is possible to use the income from your job to earn passive income from your investments. For example, the IRS says that passive income can come from two sources: a rental property or a business you’re not actively involved in. Not make mistakes; passive income is not about getting something for nothing. It involves a lot of work and is definitely not a “get rich quick” scheme.

start a savings account

Open a deposit account with your credit union, even if you can’t make regular deposits. You can use this account to save extra money for your short-term and even long-term goals. This can also be used as your emergency fund. Take 3 to 12 months of expenses, reserve for emergencies.

pay yourself first

Once you have money in your hand from your paycheck, IRS refund, etc. always pay yourself first. Arrange for automatic transfers from your checking account directly to your stock account every payday or monthly.

Do you know the impact of your credit score?

Everyone, but especially enterprising millennials, need to understand that their personal credit can be the determining factor in obtaining working capital in the future. Getting approved for a loan can be challenging when your credit score is low. Learn to read your credit report and review it often.

Reduce your debt faster

Pay off small debts first and gradually tackle larger ones. This will allow you to see results and stay motivated.

Get help from a trusted mentor

There is an overabundance of financial education information online. However, choosing the brain of someone you know and trust is better. Their knowledge is often tailored to your specific needs.

Eliminate additional costs

It’s a proven fact that millennials have expensive clothes ($5 lattes every day, regular eating out, designer fashion, etc.). Keep a close eye on your spending and cut back where you can.

Raise your kids to be financially smart

At this point, you may already have young children or plan to start a family. Teach them that saving money is essential. When they’re old enough, take them to your credit union and help them open their own accounts. Hopefully this will motivate them to continue saving their own money.

I hope you’ll use these financial tips to keep your finances in order while you’re young. Remember, you have a very bright financial future ahead of you if you start now and stick with it!