Tips For Being Money Smart In Your 20s


As a young adult in your 20s, you may often think that you have your whole life ahead of you and that you can afford to make risky financial decisions. It will always benefit you to keep track of your spending and saving habits early. Saving early for retirement is always a good idea. 

It may seem like you always have time to start saving, but the more you put it off, the less you’ll have in the long run. Think about it- all the money you could be spending on lattes and drinks with friends every weekend could add up to a decent amount towards your retirement savings. 

Another tip for being money smart on your 20s is making sure that you spend less than you make. It’s advisable to save between 15% and 20% of your income.  

By reducing or eliminating unnecessary monthly bills you can add to your savings or investment pool. If you are paying for subscriptions or services that you don’t really use very often then you’re wasting your money. 

Understand how to use credit cards. If you have a credit card, find ways to earn more rewards and make sure that you pay them on time every month.  

Know how to protect your money and your identity. Phishing scams are more common nowadays and you need to know how to avoid becoming a victim. Never provide your personal details over email. 

Steps you can take: 

  • Avoid using internet cafes for internet banking. Always make sure you enter the bank’s website address in your browser and never create shortcuts on your desktop for internet banking. 
  • Update antivirus and spyware software and perform regular system scans. 
  • Check for the padlock icon and “https” at the beginning of the banking site’s URL in your browser address bar. This ensures that the site is secure. 

Being money smart in your 20s will go a long way towards building wealth and having a decent investment and savings plan.


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