Turning 18 Checklist: Legal and Financial Checklist for Parents and Teens

Key Points – Turning 18 Checklist

Why Turning 18 Matters
Legal and Medical Checklist
Financial Checklist
Other Critical Considerations
7-minute Read

Turning 18 Checklist: Legal and Financial Checklist for Parents and Teens

Turning 18 is a major milestone. It marks the transition from childhood to adulthood, bringing with it new freedoms, responsibilities, and legal implications. For parents, this shift can be both exciting and daunting. Preparing your child for adulthood means ensuring they understand their rights, responsibilities, and the tools they need to navigate life independently.

This checklist is designed to help parents and teens prepare for the legal, financial, and personal changes that come with turning 18.

Why Turning 18 Matters

At age 18, individuals are considered legal adults in most U.S. states.1 According to the International Association for Spelling as Communication (I-ASC), 18-year-olds are permitted by law to:

Vote in federal, state, and local elections
Sign contracts
Make medical decisions
Be sued or sue others
Join the military without parental consent
Open bank accounts and manage finances independently2

However, this transition also means that parents lose automatic access to their child’s medical, educational, and financial records unless specific legal documents are signed.

Legal and Medical Checklist

1. HIPAA Release

Once your child turns 18, healthcare providers cannot share medical information with you without written consent. A HIPAA release form allows parents or trusted individuals to access medical records and communicate with healthcare providers.3

2. Medical Power of Attorney

This document designates someone to make healthcare decisions if your child becomes incapacitated. It’s essential for emergencies and ensures that someone trusted can act on their behalf.

3. Durable Power of Attorney

This allows a designated person to manage financial affairs, such as accessing bank accounts, signing tax returns, or renewing car registrations.

4. FERPA Release

The Family Educational Rights and Privacy Act (FERPA) protects students’ educational records. Once a student turns 18, parents lose access unless the student signs a FERPA release.4

5. Living Will (Advance Healthcare Directive)

This outlines your child’s wishes regarding life-sustaining treatment and organ donation. It helps avoid family disputes during medical emergencies.

6. Voter Registration

Encourage your child to register to vote. Nearly 50% of eligible 18- to 29-year-olds voted in the 2024 presidential election.5 Civic engagement starts with registration.

7. Selective Service Registration

All males must register with the Selective Service System within 30 days of turning 18.6 Failure to do so can result in fines and loss of federal benefits.

Financial Checklist

1. Review Existing Accounts

Accounts opened under the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) transfer control to the child at age 18 or 21, depending on the state.7 Review these accounts to ensure a smooth transition.

2. Open New Bank Accounts

Encourage your child to open checking and savings accounts in their name. This fosters financial independence and helps build money management skills.

3. Understand Credit

Educate your child about credit scores, interest rates, and responsible borrowing. According to Experian, the average credit score for 18- to 27-year-olds was 681 in 2024.8 Building good credit early can impact future housing, employment, and loan eligibility.

4. Review Life Insurance

If your child is listed on a life insurance policy, review the coverage and beneficiaries. Consider whether additional coverage is needed, especially if they’re financially independent or have dependents.

Other Important Considerations

1. Digital Presence

Encourage your child to review and clean up their online profiles. Employers and colleges often review social media during application processes. A professional digital footprint is increasingly important.9

2. Set Personal and Financial Goals

Help your child set short- and long-term goals. Whether it’s saving for a car, planning for college, or exploring career paths, goal-setting builds confidence and direction.

3. Housing Decisions

Whether your child is staying at home, moving to campus, or renting an apartment, understanding lease agreements and tenant rights is crucial. In California, for example, tenants must receive written notice before rent increases or evictions.10

4. Job and Career Planning

Encourage your child to explore internships, part-time jobs, or volunteer opportunities. These experiences build resumes and help clarify career interests.

5. College and Education

If your child is attending college, ensure all paperwork is completed, including financial aid forms and FERPA releases. Discuss academic expectations and support systems.

Special Considerations for Youth with Disabilities or in Foster Care

For youth with developmental disabilities or those aging out of foster care, turning 18 can be especially complex. Legal guardianship, supported decision-making, and extended foster care benefits may apply.11 Parents should consult with legal professionals or advocacy organizations to ensure proper planning.

Final Thoughts on Turning 18

Turning 18 is more than just a birthday; it’s a legal and financial transformation. By preparing early and using this checklist, parents can help their children step into adulthood with confidence and clarity.

Quick Summary Checklist

✅ HIPAA Release
✅ Medical Power of Attorney
✅ Durable Power of Attorney
✅ FERPA Release
✅ Living Will
✅ Voter Registration
✅ Selective Service Registration
✅ Review UTMA/UGMA Accounts
✅ Open Checking/Savings Accounts
✅ Understand Credit
✅ Review Life Insurance
✅ Clean Up Digital Presence
✅ Set Goals
✅ Plan Housing
✅ Explore Careers
✅ Prepare for College

Whether it’s your child or grandchild who is turning 18, we think everyone could use a little help with their financial future. If you’re looking to understand your financial picture better, connect with us today.

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Resources Mentioned in This Article

Other Sources

Investment advisory services offered through Modern Wealth Management, Inc., a Registered Investment Adviser.

The views expressed represent the opinion of Modern Wealth Management a Registered Investment Advisor. Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.