The first paycheck arrives: a special moment that marks entry into the world of work! A first step toward independence that makes us think, “I’ve made it!”.
Of course, the first paycheck is just a starting point, but precisely because it is something entirely new, many young people end up making mistakes that risk turning into habits and can make it harder to build a stable financial balance.
The first paycheck should be celebrated with friends and family. However, managing it well does not mean giving up having fun, but rather learning from the very beginning how to balance freedom, responsibility, and future goals.
Instead of treating everyone to dinner out, for example, we can cook something at home and ask friends to contribute! A cheap and fun way to share our joy!
First rule: understand how much really comes in and how much goes out
Unfortunately, we often realize that the “net” salary is different from what we expected only after the first bank transfer. That is why having solid financial education basics is extremely important.
To manage money well, you need to know three key numbers:
- Fixed income (monthly salary, recurring bonuses)
- Fixed expenses (rent, subscriptions, transportation, food)
- Variable expenses (nights out, hobbies, dinners or lunches out, occasional purchases)
Only by knowing how much you really spend—and where you could cut back—can you understand how much financial freedom you have.
Budgeting apps are very useful for this purpose, and many banks already offer automatic expense categorization systems.
The 50/30/20 rule (simplified)
A widely used method to keep money under control, originally proposed by economist Elizabeth Warren and reported by Investopedia, consists of dividing income into three parts:
- 50% needs: rent, bills, transportation, groceries
- 30% wants: travel, entertainment, shopping
- 20% savings or investments
It is not a rigid formula, but a starting point that helps avoid mistakes, such as spending everything at the beginning of the month and struggling to make it to the next one.
Create an emergency fund (even a small one)
Various international financial education studies show that most young people do not have savings set aside to deal with unexpected expenses (for example repairs, health issues, or moving).
Yet, setting aside even just €20–30 a week can create, over the course of a year, a small fund that provides peace of mind in case of emergencies and helps avoid unnecessary debt.
Avoid an oversized “reward to yourself”
Wanting to celebrate the first paycheck is normal: a trip, a new outfit, a special night out.
The problem arises when this becomes a monthly habit.
This psychological mechanism is known as reward spending: the brain associates money with immediate gratification, ignoring more useful long-term goals.
The trick?
Choose motivating goals, set a small and sustainable monthly reward, and stick to the limit.
Watch out for invisible expenses
With digital payments, it is easy to lose track of spending: contactless payments, apps, automatically renewed subscriptions.
The most common mistakes among young people—even when they are working—include:
- forgetting to cancel unused subscriptions
- paying for duplicate services (multiple streaming platforms, multiple cloud services, etc.)
- impulse purchases via apps
- excessive use of Buy Now, Pay Later services
Doing a monthly review of recurring expenses can free up significant amounts of money.
The most common mistakes among young workers
These are the behaviors that statistically create the most difficulties:
- spending the entire paycheck without planning
- not keeping a separate account for savings
- taking on debt for non-essential expenses
- not tracking spending
- using easy credit as if it were income
- overestimating how much one can afford to spend
The first paycheck is an achievement, but managing money requires knowledge, awareness, and small daily actions. Understanding how to plan, save, and distinguish between needs and wants allows us to build solid foundations for the future.
To explore these topics further and learn practical personal finance strategies, visiting www.museodelrisparmio.it and following the Museum of Saving’s activities, online or in person, is an excellent starting point.
December 10, 2025