Improving financial wellbeing: Tips for women in their 20s

Your 20s are full of transitions. New careers, shifting goals, and growing independence, the decade has it all and more – especially when it comes to your money. Whether you're just stepping into the workforce, balancing a side hustle with studies, or beginning to think about long-term wealth, building smart financial habits now can pay off massively down the line. This is especially true for women.

In Australia, research^* shows that women tend to score 20% lower in financial literacy than men and report experiencing 35% more financial stress. For young women aged 25 to 29, the literacy gap widens to 48%. That’s a huge difference at a life stage where smart money decisions can set the groundwork for long-term financial wellbeing.

So, how can you boost your financial confidence and security in your 20s? Here are five impactful steps you can take:

1. Create a budget: Know where your money’s going

Budgeting isn’t about cutting out all fun; it’s about gaining control. When you track what you earn and where it’s being spent, you can start aligning your finances with your priorities.

A clear budget helps you avoid overspending, reduce financial anxiety, and plan ahead. Whether you use a spreadsheet or an app like mymo, understanding your cash flow is the first step in building wealth.

2. Build a safety net: Life doesn’t always go as planned

From flat tyres to unexpected medical bills, unplanned expenses can happen anytime. That’s why having an emergency fund (ideally three to six months’ worth of expenses) is essential.

Start with a small goal, like $500, and work your way up. Automate your savings into a high-interest account and treat it like a regular bill you have to pay. That cushion could be a lifesaver in a tough moment.

3. Get ahead of debt: Don’t let interest pile up

If you’ve used credit cards or ‘Buy Now, Pay Later’, you know how quickly balances can grow. High-interest debt can quietly eat away at your income and hinder your financial goals.

Make paying down these debts a priority. Strategies like the avalanche one (tackling high-interest debts first) or snowball method (starting with the smallest balances) can help. And if you can, always pay more than the minimum amount due.

4. Invest in your knowledge: Financial literacy is power

You don’t need a finance degree to feel confident managing your money. Understanding the basics, like saving, investing, and budgeting, can change your mindset and give you a greater sense of control.

There are free tools, apps, podcasts, and even TikTok creators who make learning about money fun and approachable. A great starting point is the Your Financial Wellness tool that is available to our customers for free. It breaks down key concepts that align with your personal goals and needs, in a simple way.

5. Plan for the future: Don’t ignore your super

Retirement might be decades away, but your 20s are the best time to start thinking about your superannuation. Women often retire with significantly less in their super due to career breaks or part-time work. Some reports^* even indicate this gap can be as much as 50%.

To help close that gender gap, consider making voluntary contributions when you’re able. Even small, consistent additions can significantly boost your retirement savings over time.

Five key steps

Your 20s are the perfect time to lay a strong financial foundation. Taking small, consistent steps today can lead to a future that feels secure, empowering, and free from financial stress. Remember, building financial wellness is a journey and the earlier you start, the better off you’ll be.

^*Data from Your Financial Wellness, February 2025.

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