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Consumer Protection Tips for Young Adults

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Top 10 Tips for Young Consumers

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1. Open a bank account.

  • Protect your money in an insured bank or credit union. Look for official signs: FDIC (banks), NCUA (credit unions). You can also access services as you and your money needs grow.
  • NYC SafeStart Account and Bank On certified accounts are affordable accounts that have no fees or minimum balance requirements.
  • To open an account, you may need an adult and/or government-issued ID like IDNYC or a Non-Driver ID from the Department of Motor Vehicles.

2. Understand what you’re buying.

  • Shop around for the lowest price.
  • Read return policies and contracts carefully.
  • Monitor subscriptions. Cancel ones you don’t need.
  • “Buy Now, Pay Later” are short-term loans that could mean fees and interest. Consider if a loan is worth it.
  • Do research before buying used items like cars or electronics. Make sure they work and check for recalls.

3. Learn to live on a budget.

  • Know how much money you have so you can make decisions about spending and saving.
  • Track money coming in and going out to avoid problems.
  • Know the difference between a “need” and a “want.”
  • Know your money goals so you can save for them.

4. Plan early to afford college or trade school.

  • A 529 plan helps families save for higher education. Ask if your family has one or can open one.
  • Check for financial assistance. Complete the Free Application for Federal Student Aid (FAFSA) the year before you start school.
  • A school’s offer of “aid” is often a mix of grants you don’t repay and loans you must repay with interest.
  • Make higher education a money goal. Save for expenses and student loan repayment.

5. You can start a business at any age.

6. Invest based on homework not hype.

  • Investments and investment advice are the top frauds targeting young people especially on social media.
  • There are many types of investments. They include stocks, bonds, mutual funds, real estate, cryptocurrencies. Make sure you understand them. If you don’t, you can be out a lot of money and fees. The U.S. Securities and Exchange Commission has resources to help.

7. Protect yourself from scammers.

  • Social media is the #1 way young people have lost money to scams.
  • Don’t post personal or financial information.
  • Beware of unexpected contacts. Scammers create fake accounts to gain trust and information. Research before you respond.
  • Use trusted sites to buy online. Look for a product’s picture, description, user reviews. Make sure you can contact the company.
  • Review account statements for fraud. This includes payment apps, debit card, bank transfers, cryptocurrency.

8. Younger workers have special rights.

  • If you’re under 18, know where, when, and how long you can work. Read Youth Workers Bill of Rights created by New York State Department of Labor.
  • You can get a working papers application from your school’s guidance office or NYC Public Schools.
  • Consider employment programs run by DYCD.
  • Your family may be eligible for NYC Free Tax Prep to see if you must file taxes.

9. Credit scores matter so think before you charge.

  • Using a credit card means you must repay the amount plus any interest and fees later.
  • To avoid interest charges, pay your balance in full every month if you can.
  • Paying just the minimum or missing payments because you can’t afford them costs you more and damages your credit score.
  • Your credit score uses your credit history to predict how reliably you will make future payments.
  • Check your credit report every year.

10. You have renter rights and resources.

  • Under a new law, brokers who represent landlords can’t charge fees to tenants. Monitor nyc.gov/dcwp for when this law takes effect.
  • You can apply for NYC housing lotteries starting age 18.
  • Make your first apartment a money goal and save for it. Ready to Rent offers free financial counseling if you’re applying for affordable housing.

Free Help and Resources:

AnnualCreditReport.com: annualcreditreport.com
Bank On (Accounts): joinbankon.org
Federal Deposit Insurance Corporation (FDIC): fdic.gov/getbanked
Federal Student Aid (FAFSA Form): studentaid.gov
IDNYC: nyc.gov/idnyc
National Credit Union Administration (NCUA): ncua.gov
NYC Department of Consumer and Worker Protection:
nyc.gov/dcwp (Click Consumers)
nyc.gov/workers (Workers’ Bill of Rights)
NYC Department of Youth & Community Development: nyc.gov/dycd
NYC Financial Empowerment Centers: nyc.gov/TalkMoney
NYC Free Tax Prep: nyc.gov/taxprep
NYC Public Schools: nyc.gov/schools
NYC Small Business Services (Start a Business): nyc.gov/sbs
New York State Department of Labor:
dol.ny.gov/youth (includes breakdown by age)
dol.ny.gov/youthworkers (Youth Workers Bill of Rights)
NY’s 529 College Savings Program: nysaves.org
Ready to Rent: ariva.org/ready-to-rent
U.S. Securities and Exchange Commission: investor.gov

ARCHIVED QUICK TIPS FOR YOUNG ADULTS

Young adults face consumer challenges every day. The Department of Consumer and Worker Protection (DCWP) created a series of tip sheets to educate young adults about their rights and how the spending decisions they make today will affect their future.

Quick Tips Before You Enroll in a School or Training Program

Quick Tips about Car Loans

Common Credit Repair Scams

Quick Tips about Student Loans

Quick Tips about Credit Cards