Smart Money Moves to Make in Your 20s

Your 20s can be one of the most exciting — and financially formative — decades of your life. For many, this is when you land your first full-time job, earn your first steady paycheck, and begin building your financial foundation. While you may not have a mortgage, kids, or major responsibilities just yet, what you do with your money now can significantly impact your future.

Here are three essential money moves to make in your 20s to set yourself up for long-term financial success:

1. Pay Attention to Your Money

The first and most important step to financial health is knowing where your money is going. Start by examining your paycheck — not just the amount that hits your bank account, but the full pay stub.

• Do you understand how much you’re earning before and after taxes?
• Are you contributing to a workplace retirement plan?
• What benefits are you paying for, and are you using them?

Once you understand your income, track your spending. Create a simple budget — it doesn’t have to be perfect. Use budgeting apps or spreadsheets to categorize your expenses. Identify where your money is going each month: rent, food, streaming services, takeout, subscriptions, and more.

This isn’t about judgment — it’s about awareness. When you’re paying attention, you’re in control. You can start to make better choices and set priorities for your financial future.

2. Start Saving at Least 10% — and Be Consistent

Saving early is one of the most powerful things you can do in your 20s. Why? Because you have something that people in their 30s, 40s, and 50s don’t: time.

The goal is to save at least 10% of everything you earn. That might sound intimidating at first but start small if you need to and work your way up.

If your employer offers a 401(k) or similar retirement plan with a company match, take full advantage. Those matching dollars count toward your 10% goal. For example, if you contribute 6% and your employer matches 4%, you’re already saving 10%.

Eventually, aim to increase your contributions to 15% — especially as your income grows. And if your workplace doesn’t offer a plan, open a Roth IRA or traditional IRA and contribute regularly.

The key here is consistency. Saving the same percentage of your income every paycheck helps build a habit that will benefit you for decades to come. Automating your savings can make this process even easier.

3. Minimize and Manage Debt Wisely

Debt can be a major roadblock to financial freedom if not handled carefully. In your 20s, you may have student loans, a car payment, or be tempted by credit cards.

The best strategy? Avoid high-interest debt as much as possible. That means using credit cards sparingly and paying off the balance in full each month. Credit card debt carries notoriously high interest rates, and even small balances can grow quickly if left unpaid.

If you have student loans, stay on top of them. Explore options to reduce your interest rate, like refinancing or income-driven repayment plans if needed. But in most cases, simply staying on your regular payment schedule is enough — there’s no need to rush to pay them off faster at the expense of your savings.

Final Thoughts

Your 20s are your financial launchpad. By building awareness of your money, saving consistently, and managing debt wisely, you’re setting yourself up for a much stronger financial future. The habits you form now will make it easier to buy a home, invest, travel, and build the life you want down the road.

You don’t have to be perfect — you just have to get started. And the earlier you do, the more your future self will thank you.