Money moves that people need to make at age 22 are very different from those necessary at age 42, yet many people try to apply the same habits to every stage of life. That’s how opportunities get missed and costly mistakes pile up.
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Whether you’re just starting your career or planning for retirement, finance expert Julie Guntrip, head of financial wellness at Jenius Bank, explained the smartest money moves for each decade.
Money skills aren’t “one and done.” They evolve with life stages. When you’re younger, it’s important to build confidence and learn the basics. The older you get, the more you need a strategy. Once you hit your 40s and beyond, the focus should shift to security and long-term planning.
“Financial education is a lifelong journey, not a one-time crash course,” Guntrip said.
The 20s can be a confusing and overwhelming time when it comes to finances, Guntrip said. Young people often feel swamped because they see an endless supply of financial information — “and all of it feels like it’s written in a foreign language.” Unsure of where or how to get started, many young people “just don’t start at all,” she said.
“The missing piece is often confidence,” Guntrip pointed out. Without a grasp of the basics of money management, many twentysomethings blindly follow social media trends or hearsay instead of a personalized plan.
However, adopting financial literacy is very important at this stage of life; the earlier you start saving and let compound interest work for you, the better your odds of growing your savings significantly, Guntrip said. “But it requires one critical ingredient: time.”
Other important habits to start in your 20s:
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Track income/expenses and create a realistic budget.
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Establish savings habits early, including an emergency fund.
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Build credit intentionally by making on-time payments.
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Learn the basics of compound interest and start investing.
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Open a Roth IRA if you qualify.
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By the time people reach their 30s, they should be focusing on defining and setting their money values and goals so they can be more intentional about spending and saving, Guntrip explained.
For those who arrive in their 30s still carrying debt, it’s also a good time to learn good debt management strategies such as strategic uses of debt, consolidation options, and effective repayment methods, Guntrip said.
