MoneyOwl CEO on CNA’s Money Mind – 5 Money Mistakes of 20+ Year Olds

Learn how you can make smarter financial decisions in your 20s that will shape your future. With the right knowledge, you can avoid common money mistakes and navigate challenges like misinformation and economic crises, ensuring long-term security.

10 MIN READ

19 Sep 2024

Summary

Unique Financial Background: People in their 20s today, born around the 2000s, have experienced both the rise of digital technology and major economic crises like the 2008 Global Financial Crisis and the 2020 COVID pandemic. These events shape their relationship with money.
Digital Challenges and Opportunities: As true digital natives, they have access to vast amounts of information but also face challenges like information overload and navigating trends like cryptocurrency, which can be both promising and risky.
Financial Potential and Vulnerability: Despite economic uncertainty and the rising cost of living, young adults have great potential to build financial health. However, these challenges also make them more vulnerable to money mistakes if they don’t manage their finances carefully.

By Chuin Ting Weber, CFP, CFA, CAIA
CEO & CIO, MoneyOwl

When I was asked to share some ideas for CNA Money Mind on “Top Money Mistakes People Make in Their 20s”, I thought — who are people in their 20s, and what makes you more or less vulnerable money wise, compared to those older?

20+ year olds: You would have been born around the turn of the century, and would either be considered a “Gen Z” or to be the younger end of the Millenial generation.

You have thus lived through both the best and worst of times – in terms of technology and in terms of economic development.

Tech-wise: you are the true digital natives. You have all the information at hand, but also with that, information overload, misinformation and confusion. Blockchain and crypto, with all its promise and pitfalls.

Economy-wise: the last 2-3 decades have seen tremendous economic progress and growth of wealth, but also two global crises – in 2008 Global Financial Crisis and the 2020 COVID pandemic, which upended many long held beliefs, growing income and wealth disparity, and an increasing cost of living.

So these experiences – lived either directly or through families – affects your relationship with money, consciously or contextually.

It means that you’ve got a lot of potential to achieve great financial health, but on the other hand are also more vulnerable in some ways.

I hope that this sharing on CNA’s Money Mind helps in some way!