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Your 20s are here and it may seem like it’s too early to get serious about stuff like finance because you’re just fresh out of your teens.

Your 20s are here and it may seem like it’s too early to get serious about stuff like finance because you’re just fresh out of your teens. But, your early 20s are actually the perfect time to at least start thinking about your finances. Like the phrase goes “catch them young!”. If you are already 20, a little over 20 or on the cusp of turning 20, chances are you belong to Generation Z. According to Business Insider:

“Generation Z (aka Gen Z, iGen, or centennials), refers to the generation that was born between 1996-2010, following millennials. This generation has been raised on the internet and social media, with some the oldest finishing college by 2020 and entering the workforce…and will soon become the largest cohort of consumers.”

These statistics indicate that the 20 somethings are going to be the generation that will be buying and consuming a lot of stuff, way more than their predecessors, the millennials. It is obvious that their purchasing power will have to be greater as well to be able to afford goods and services like rising costs of education, housing, healthcare, groceries, furniture, etc.

This is precisely why you 20-somethings need to get to work. Ideally, start working early and start saving early too. 

Here we list out the 6 most essential Financial Skills for Generation Z:

1. Say No To Credit Cards

Those flashy credit cards stacked up in your wallet can make you look and feel on top of the world but they can also be a debt trap. According to Forbes, “…around the world, household debt has been at its highest when the unemployment rate has been at its lowest.” Although credit card companies may be celebrating this trend, it can actually prove disastrous for young users like yourself who have a long way to go. If you are trapped in credit card debt, it will only get worse with time if you are unable to pay back on time. 

Credit cards can be a boon in emergencies but remember that when you actually swipe your credit card, you are spending money you don’t have. It is someone else’s money and it is fine to use it as long as you have the means of paying it back without getting into trouble. So as far as possible, stay away from credit cards and only use them when absolutely necessary.

2. Invest In Constant Learning

The job market is becoming cut-throat and ruthless. With unpredictable events like pandemics and stock market crashes, layoffs are becoming common. This is why it is critical for you to invest a part of your earnings or savings in upgrading your skillset. Enroll in a new course, develop marketable skills like strong writing, professional communication, social media marketing, etc. — skills that are indispensable to any business and will not let you down when the job market is tough.

3. Learn The Importance Of A Savings Account

Now that you’re in your 20s and probably and ideally looking for a job or starting a small business even, open an individual savings account and make it a point to keep some cash in it at the start of every month. Think of it as a sophisticated version of your piggy bank. Saving up money is insurance for yourself. So don’t get all grumpy and irritated when Mum or Dad asks you to save up. They are telling you to do the right thing!

4. Get In Touch With Wealth Managers Or Financial Planners

Many banks provide financial planning and wealth management at very nominal costs. If your parents or guardians have a good relationship with the bank then you may just get the service completely free. A wealth manager will guide you and answer all the questions you have about investing your money in various instruments such as mutual funds, tax-saving fixed deposits, etc.

Regardless of whether you have the finances or not, sooner or later you will have to become familiar with these terms. So do not feel intimidated if you don’t have a significant sum to invest. There is no harm in asking and learning about financial planning. The sooner the better!

5. Prioritize Your Expenditures

All fun and no play makes Jack a dull boy is an old English saying. The same applies to finances. Being a miser and hoarding all your hard-earned money or allowances given by parents is a bad idea. Remember, money is a means to ends and not an end in itself.

So use it to for things that are necessary, use it to make your life a happy one. Use it to eat good food, have a good time with friends, watch a movie, buy a nice pair of clothes, etc. But, only when it is necessary. Don’t fall for those images of dapper young people in movies rushing out of Macy’s or Bergdorf with a ton of shopping bags. Be realistic and set priorities.

6. Plan Your Retirement

Yes, we know old age is a long time away but it will take your money even longer to accumulate into a substantial amount. So start early, start young. Having retirement security will shield you from several of life’s unpredictabilities and curveballs

Every year, the price of money increases. This means that what we save today would have very little value 20 or 25 years from now. 

7. Get To Know Your Investments

Your 20s are the right time to dive into the nitty-gritty of your financial possessions. Talk to your parents, grandparents or guardians and know more about any investments they have made in your name. Get to know about your health insurance premiums, understand what money-back plans are, how recurring deposits are different from fixed deposits, how much interest do your investments get you, mutual funds and more.


With rising costs of education, housing and healthcare and high aspirations for a good life, it is becoming more important than ever to start earning and saving as early as possible. In addition to saving up, it is equally important to make wise financial decisions in order to keep your savings intact for a rainy day and grow them wisely. It is strongly recommended to become financially independent and self-reliant as far as possible. So get saving folks!

With rising costs of education, housing and healthcare and high aspirations for a good life, it is becoming more important than ever to start earning and saving as early as possible. Click To Tweet

  1. Nicee! Saying no to credit cards. That one is important because anyone can just offer us one and we tend to accept thinking it is a good deal. It even might be in the short term, but it will hurt you in the long term. Great tips.

  2. Being aware and hands on with your finances early on is so important. While I would argue that having at least one credit card would be a smart move, all of these are great tips.

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