Your 18th birthday is, perhaps, the most important birthday of your life. It’s the day you become a legal adult, the day you gain sovereignty over your decisions, and the day you gain total independence. However, an often overlooked aspect of turning 18 is the dramatic changes that will be made to your financial freedom and status. So, in this article, we will cover some of those freedoms synonymous with turning 18 and what that means for you.

One large financial freedom, that is also a legal one, is the ability to enter binding contracts. Before turning 18, you are a child in the eyes of the law, and thus, do not have the freedom to make financial decisions independently. However, once you turn 18 you are as much of an adult according to that same law as your parents, and thus, you will have the freedom to utilize the law as a please. This includes, but is not limited to taking out loans, signing contracts, buying property, and more.

Another large freedom that comes when you turn 18 is gaining total control over the money in your name. Just about every kid gets money for Christmas or their birthdays growing up, and often times that goes into formal bank accounts that hold that money under the direction of their parents. When you turn 18, money written in your name legally becomes yours, and is now under your formal directory. With this power, though comes reponsibility. You, as the now legal owner of these assets, are responsible for paying taxes, allocating them appropriately, and making wise financial decisions for your own benefit. Whether it be properly investing what you have, or simply saving it in the case of an emergency, your finances become yours and yours alone.

All in all, the takeaway from this article should be that financial maturity is about using your rights, but doing so in a way that is responsible and beneficial. You leave with the consequences of your choices, and thus, the actions you decide to take are determinant of your future.