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July 11, 2012Age matters. When it comes to your finances, there are endless rules, benefits, tricks and traps based on how old you are. Many rules are confusing and inconsistent. But it pays to be aware of the opportunities available, particularly if you're approaching a significant birthday.You're an adult, but the welfare taps necessarily don't switch off. If you're still dependent on your parents, they might be eligible for Family Tax Benefits of up to $70.56 for an 18-to-20 year old who has finished secondary study and a 21 year old in full-time study.You might be eligible for Youth Allowance if you're between 16 and 20 and looking for full-time work or undertaking approved activities; between 18 and 24 and studying full time; or between 16 and 24 and undertaking a full-time apprenticeship. However, parental means tests apply if you are considered a dependant and your own income will be means-tested if you're independent. If you were a 20-year-old job seeker on July 1 and receive Youth Allowance payments, you will remain on Youth Allowance until you turn 22.You might also be eligible for Youth Allowance if you're 16-17 and need to live away from home to study or are considered to be independent.Once you turn 25, you might be eligible for Austudy if you're a full-time student or apprentice.A senior adviser with Westpac Financial Planning, Glenn Calder, says this is also the age when you start to take control of your own finances. Employers are required to make compulsory super contributions for employees aged 18 or older who earn $450 or more before tax in a month. Employees under 18 must meet these conditions and work at least 30 hours a week to be entitled to compulsory super. Calder says it's worth thinking about where your super is invested. ''The typical balanced fund is completely inappropriate for someone in their 20s,'' he says. ''For them, markets crashing is the best thing that could happen to them because each dollar being contributed is buying more assets. So long as markets recover by the time they're 60, they'll find they've done very well.''Calder says young adults also need to take care with debt.A host of borrowing opportunities open up but this is when a lot of people make their big financial mistakes. ''Just because a bank gives you a credit card doesn't mean you should use it,'' he says.You reckon you're going to live forever? Welcome to the first hint of your mortality. According to the number crunchers at the health insurers, you have reached the age when you're more likely to cost them in medical expenses. So unless you have private hospital cover before July 1 following your 31st birthday, it's going to cost you more.If you buy insurance later, a 2 per cent loading will be charged on top of your premium for every year you are aged over 30.The maximum loading of 70 per cent applies to people who don't take out insurance until they're 65. On the plus side, once you have paid the loading for 10 continuous years, it will be removed as long as you retain your hospital cover.Calder says your 30s are also a time of high financial risks.This is the time when a lot of people are tied up with a mortgage and the cost of raising children. The last thing you need is another expense, but he says this is when people are most vulnerable if something goes wrong, so thought should be given to life and income-protection insurance.Ideally, as you get older and more financially secure, the insurance can be wound back and the money directed to investing. Calder says once you hit 40 you should think about developing a passive income that can cover your living expenses once you stop working.Uh, oh. It's that milestone birthday.The grey hairs are showing and you are constantly reminded that retirement is looming. To make matters worse, the government has just taken away a concession that allowed people aged 50 or more to contribute extra money to super. For the next two years, at least, you'll be limited to the same $25,000 cap on concessional contributions that applies to an 18 year old.Biti says that if you haven't done it already, now is the time to give some serious thought to building your super.Read more: http://www.smh.com.au/money/planning/a- ... 21s8a.html