10 Money Mistakes People Make in Their 20s (And How to Avoid Them)
Your 20s are full of change — first jobs, first apartments, student loans, new responsibilities. It’s easy to make money mistakes during this time, but the good news is: most of them are avoidable.
Here are the most common mistakes and how to fix them early.
1. Not Tracking Spending
If you don’t know where your money goes, you can’t control it.
Start with a simple app or notes log.
2. Avoiding Budgeting
Budgeting isn’t punishment — it’s clarity.
Even a basic plan helps.
3. Relying on Credit Cards
Credit cards aren’t bad — but using them to cover lifestyle upgrades leads to long-term debt.
4. Not Building Credit Early
Good credit saves thousands over your lifetime.
Use credit wisely now so future loans are cheaper.
5. Ignoring Emergency Savings
Life happens. Car issues, medical bills, job changes — an emergency fund saves you every time.
6. Not Saving for Retirement
Yes, retirement feels far away. But starting young creates the biggest growth.
7. Spending to Keep Up With Friends
Everyone’s money situation is different.
Live within your means, not theirs.
8. Avoiding Student Loan Planning
You don’t need to pay them off overnight — but you do need a plan.
9. Overspending on Lifestyle Upgrades
New apartment? New furniture? New car?
Go slower than Instagram tells you to.
10. Thinking “I’ll Start Later”
The biggest money mistake of all is waiting.
Small habits today lead to huge financial results later.
Final Thoughts
Your 20s are the perfect time to build smart money habits. Avoiding these mistakes gives you a massive advantage for the rest of your financial life.