What I Wish I Knew About Money in My 20s

9/1/2025

I recently joined Grant Gallagher and Shawn Lubitz on Affinity Federal Credit Union’s podcast, ‘Wellbeing and Your Wallet’, for a great conversation titled “What I Wish I knew in my 20s About Money.” We discussed the financial lessons we’ve learned over the years, from spending habits we’d go back and change to the confusion around credit, the importance of emergency funds, and so much more.

Listen to the full conversation here.

If you’re in your 20s and trying to figure out how to make smart financial decisions, you’re not alone and you’re definitely not behind. Your early adult years are full of trial and error, and money tends to be one of those things we’re expected to manage without much formal education.

Looking back, there are a handful of financial habits I wish I had established earlier. These are small, consistent actions that can build a strong financial foundation and help you avoid common missteps. Whether you’re just starting your first job or trying to gain some traction with your goals, here are things to remember and potentially act upon.

Read More: Guiding Gen-Z Through New Life Transitions

Don’t wait to start saving for retirement

One of my biggest regrets from my 20s is not contributing more to my retirement account. I did contribute to my employer-sponsored plan, but I was conservative about it because I was focused on paying off student loans. That trade-off felt responsible at the time, but in hindsight, I wish I had found a way to do both.

Even small retirement contributions in your 20s can make a big impact because of compound growth. I always tell people: it doesn’t have to be a lot. What matters is that you start. If you set up automatic contributions and increase the percentage when you get a raise, you’ll barely feel the difference in your paycheck, but you’ll see it grow over time.

Read More: Find Out More About Retirement

Build an emergency fund early

When you’re young, it’s easy to feel like you’ll just “figure it out” if something unexpected happens. But having a few hundred dollars in a separate savings account can go a long way. This way you’ll have some breathing room if a medical bill, car repair, or a gap between jobs arises.

Start with a small, consistent transfer, maybe $10 or $20 from each paycheck, and don’t touch it unless it’s truly an emergency. Once you get in the habit, you can gradually work toward a goal of saving 3–6 months’ worth of expenses.

Understand how credit actually works

When I first got a credit card, I thought I understood it. But there were a lot of things I didn’t fully grasp like how carrying a balance racks up interest quickly, how payment history affects your credit score, and how confusing it can be to rebuild credit once it’s taken a hit.

Credit isn’t something most people talk about openly, which is part of the problem. I’ve met so many people who felt blindsided by how much their credit score affected things like car loans, apartment applications, and insurance rates.

If you’re just getting started with credit, make sure you pay at least the minimum due (and ideally the full balance), avoid maxing out your cards, and keep track of due dates. It’s also worth reviewing how credit scores are calculated. There’s a lot of nuance that doesn’t always match common sense, like how having more credit available (without using it) can actually help your score.

Read More: Real Ways to Increase Your Credit Score

Be aware of spending habits shaped by peer pressure

A big part of your 20s is building relationships and experiences, but that often comes with spending money. It’s easy to feel like you have to say yes to every dinner, weekend trip, or concert. I’ve definitely said yes to things I couldn’t really afford at the time, just because I didn’t want to be the one sitting it out.

Over time, I realized that setting boundaries with my spending didn’t mean missing out. It just meant being more intentional. And when I started talking openly with friends about financial goals, I learned that many of them were feeling the same pressure. If you’re honest about what you can and can’t spend money on, you’ll be surprised how often people relate.

Start where you are

You don’t need to have every part of your financial life figured out. But the sooner you start building habits like saving a little, tracking your spending, paying attention to your credit, the easier it becomes to make progress. At Navicore Solutions, we work with people every day who are trying to improve their financial situation. Many of them say the same thing: “I wish I had started this earlier.”

Affinity’s long-standing partnership with Navicore is a great example of how your financial institution can be a source of support, information, and tools to help you grow. No matter where you are in your financial journey, there are steps you can take today to set yourself up for tomorrow. Listen to the Wellbeing and Your Wallet podcast episode on this topic and learn more about the free services Navicore offers Affinity members here.

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