The financially savvy individuals in our community shared insights on the money tips they wish they could impart to their younger selves. Here’s a collection of their valuable advice.
On a scorching summer day after my first year at college, I ventured to a local bank to open my initial account. As the teller gathered my details and set things up, I found myself zoning out while she explained interest rates and fees. Back then, I thought she was an expert, and I believed that someone my age couldn't grasp the complexities of banking. Plus, I was mainly excited about getting personalized Looney Tunes checks for my account.
The reality was that I felt too shy to confess to the teller that I didn’t comprehend anything she was saying.
Throughout my college years, I wrote checks featuring Tweety Bird and the Tasmanian Devil for various expenses like my music subscription and phone bill, with no clue on how to balance my checkbook or manage my budget. When my husband and I merged our finances before tying the knot, I remember his shock when I revealed, “I’ve never balanced that thing in my life.”
I’m not proud of my early financial management days, but my missteps have ultimately shaped me into a financially stable woman in my 40s.
Though I still grapple with concepts like compound interest and amortization, I’ve learned the importance of asking questions until I fully understand my financial choices. Thankfully, I no longer have Looney Tunes checks, which my husband appreciates!
Recently, a younger colleague excitedly shared that she’s moving into her first apartment at 22. While I’m thrilled for her, I felt a protective instinct as she described her new place; I wanted to spare her from the financial blunders I made at her age. Those early years living independently can be daunting, especially regarding money.
Even a prominent financial expert reflects on what she'd tell her 22-year-old self. “I wish I knew that saving and planning for the future is manageable. I avoided taking charge of my finances, thinking it was a secret only a few understood,” she noted.
I asked the women in our group, “What money advice would you share with your 22-year-old self?” and received a wealth of thoughtful responses. Read on to discover what they wish they had known earlier about finances.
On Retirement:
Lauren H. – “I’d advise my 22-year-old self to start a retirement account from day one, even if it’s not through my employer. Just set it up and let it grow!”
Anne M. – “Aim to save at least 10% in a retirement account, and consider investing outside of retirement earlier.”
Ellen R. – “Make sure to understand your retirement options. I work for the state and didn't realize I needed to register to convert my first two years of service into a 401(k).”
On Budgeting:
Maygan A. – “One of the best pieces of advice I’ve received is to create a list of things you believe will bring happiness (like a new outfit or vacation) and compare it with a list of what truly brings joy (like time spent with loved ones or cooking at home). Reflecting on these lists can reveal that genuine happiness doesn’t come from purchases.”
On Saving:
Lisa D. – “To my younger self: Never cash out your retirement fund! Remember, all your savings lead to freedom and the ability to leave a job that doesn’t suit you. Future you will be grateful.”
Vicky A. – “Start saving early, even if it's just $5 a week. Making it a habit will make it easier when you can contribute more later.”
Cathy H. – “I’m thankful for my parents guiding me in starting an IRA. I wish I had contributed even a small amount early on instead of waiting until I felt financially comfortable.”
On Your First Job:
Laura B. – “Recognize your worth and negotiate your salary for every new job. Then prioritize saving for yourself.”
On Moving Out/Your First Place:
Joanna W. – “Living with your parents is worth it! I moved back home right after college and saved significantly while establishing a strong financial foundation.”
On 401(k)s:
Sara S. – “Max out your 401(k) in your first job. You won't miss that money, and you'll be surprised by how much it grows!”
Nancy A. – “I began contributing to my 401(k) at my first job, but only saved 10-15%. I wish I had known I could have contributed more!”
Heather B. – “Always take advantage of a 401(k) match! It’s free money. I focused heavily on paying off debt and missed out on this opportunity.”
Special Recognition:
Alison D. – who shared, “I’m 20 and plan to be debt-free in about 11 months. By 22, I hope to be married, have a fully funded emergency fund, and be saving for a home. We have a solid plan with flexibility for unexpected events.” High five, Alison!
We all have financial regrets, and it’s easy to get caught up in the “if only” mindset. However, it's never too late to start saving. Even if you didn’t save early, you can catch up now.
“One of my money rules states that you can reclaim lost time by saving more,” she advises. If you're behind, be honest about your finances and determine how much you need to save. “Then, adjust your life to meet your new financial objectives. You can achieve this!”
