Stepping into adulthood happens overnight: you turn 18 one day, and then you’re free to make your own decisions.
But becoming independent takes time.
Some young adults remain on their parents’ phone plans or continue to share a joint bank account well into their 20s. But experts say having autonomy over your bills, banking and debt early on can help build financial confidence for years to come.
Being aware of the changes that come with adulthood is the first step, said Laura Whiteland, certified financial planner and owner of Inclusive Financial Planning.
“It is kind of a light-switch moment where everything is very suddenly your responsibility,” she said. “Even if (your parents) are supporting you or helping you … you are the one that is responsible.”
Whiteland said a good first step to becoming financially independent is setting up a bank account that’s separate from your parents’.
Then start tracking the bills your parents have been footing for you.
“With kids, they don’t even realize what their parents are paying for and all these things they actually have to do to start adulting,” said Brooke Dean, a Calgary-based senior wealth manager with BMD Financial Ltd.
Dean suggested taking up smaller expenses, like a phone bill, at first and then moving onto bigger ones, like an auto loan or tuition.
A separate credit card is crucial in the early years to start building your own credit, Dean said. It can be a student credit card with a low limit or even a prepaid card.
“A lot of people don’t even realize till their late twenties, ‘Oh, I don’t have my own credit or my own credit limit because I’ve been using my parents,’” Dean said.
Eventually, Dean said it’s better to take over student loans that your parents may have co-signed with you and learn about the investments earmarked for you, such as registered education savings.
“If your parents have RESPs set up with you, you should have a good idea of what’s in there and how much is that actually going to support school-wise,” she said.
But taking on financial obligations comes down to whether you can afford it, said Wendy Brookhouse, a Halifax-based certified financial planner and founder of Black Star Wealth.
“It depends on what your financial capacity is,” she said. “What are the things you want to gain confidence in, and it could be gradual so that you take something on, get used to it, then take on the next one.”
For Whiteland, taking autonomy over her own finances started as soon as she got a job as a teenager.
“The second you have your own money coming in … you are responsible for everything you’re deciding,” she recalled.
Often, Whiteland said there’s a level of presumptive knowledge with money, such as managing banking, credit cards and debt, but young adults may not understand how all that works.
She said finding the right resources online and researching how a credit card works, for example, is important for laying the foundation.
“There’s going to be an adjustment period,” she said. “The biggest thing usually is not making a bunch of mistakes that you end up paying for over a very long period of time.” For instance, getting a high-interest car loan or maxing out a credit card.
Understanding the basics of budgeting is also central to financial autonomy, Whiteland said.
The purpose isn’t to count every dollar spent or earned but to focus on having more than you spend in a month.
“The biggest job there is actually the discipline of saving and having an emergency fund,” she said.
Dean agrees. No matter how small, she said having an emergency fund is a crucial part of successfully becoming financially independent.
Taxes become another major, and sometimes daunting, task for new adults. Dean said most rely on their parents for compiling tax returns, but it’s important to slowly start taking charge.
“If your parents are doing it, sit down with them and go through it with them,” she said. “What does it look like to do your own taxes? What slips do you need to do your own taxes?”
Brookhouse said these responsibilities will eventually help young Canadians deal with bigger tasks in life.
“You’re used to dealing with the money, you’re used to having that responsibility,” she said.
“You’re adding another level of capacity, capability, and confidence, and that really can spill over into other areas of your life.”
This report by The Canadian Press was first published Oct. 26, 2026.
