Estimated reading time: 6 minutes

Lately, I’ve been thinking about how easy it is in your 20s to fall into the mindset of “I’ll figure it out later.” The instant gratification of our worlds have taught us to prioritize the now versus later, especially when it comes to money.

There’s this underlying feeling that you have time, that things will somehow fall into place later. You’re just starting out, figuring things out and it almost feels like the consequences of today’s decisions are far away enough to not fully matter yet. 

But here’s the thing, how you manage money in your 20s shapes everything that comes next. Your 30s, your 40s, your lifestyle, your options.

And for most of us, that’s overwhelming, because no one really taught us how to do it.

Why Managing Money in Your 20s Feels So Confusing

Money is one of those things you’re expected to “just figure out.”

Most of us were never really taught how to think about it. It’s not something you learn properly in school, and it’s not always something openly discussed at home either. Money ends up being the uncomfortable topic that you’re expected to figure out on your own.

That idea actually reminded me of something I read in what is now one of my favourite books, The Courage to Be Disliked. One of the core ideas in the book is that a lot of what we believe, and how we behave, comes from our environment and the patterns we’ve absorbed growing up. We don’t question them, we just follow. And money is no exception. 

[Suggested: Money and Relationships – Here’s How to Talk to Your Partner About Money]

If you grow up in an environment where money was scarce and expenses had to be scrutinised, you carry that as you enter your 20s. If money was taboo, you feel uncomfortable talking about it. If money decisions were gatekept, the same decisions feel intimidating even if it’s your own money. And that’s often where fear or avoidance around money starts. 

But the book also makes another point: those patterns aren’t fixed. You can choose to question them. You can unlearn what doesn’t serve you, and build your own way of thinking, one that’s more intentional, more aware, and actually aligned with the life you want.

This is where learning how to manage money in your 20s really begins.

How TikTok Changed My Relationship With Money

For me, that shift didn’t come from a formal course or a textbook. It started in a much more unexpected place, TikTok. If you haven’t guessed already, I’m Gen Z.

I know how it sounds, but hear me out.

It wasn’t abstract advice or old school theory. It was people my age talking about their actual experiences. How they managed their money, the mistakes they’d made, the systems they’d built. I could see myself in them.

A creator that really shaped how I think about money was Mia McGrath, with her Frugal Chic brand, focused on spending habits, saving and getting started with investing. What I really liked in particular was her transparent payday routine videos, where she shows her income and how she manages it between her savings, investments, and what she spends.

The way these creators were talking about money completely changed my perspective. It made money feel… normal.

The Real Secret to Managing Money in Your 20s

Splurging, travelling, eating out, all of this was in the budget but not at the expense of sloppy personal finance. It showed me that being good with money doesn’t mean you suffer more and enjoy things less. It wasn’t about what you deprived yourself of. The key to all of it was discernment.

It all comes down to being intentional with where your money goes, and building systems that support that. Everyone’s system looked different, I discovered. Some people followed structured rules, others created their own, but the common thread was consistency.

Once you have systems in place, you’re not constantly relying on willpower. Good decisions start to feel like second nature. For myself, for the longest time, my money was just sitting in a checking account. Which is a missed opportunity considering it could have been compounding. Over time, I became more intentional.

 The takeaway right now for you is figuring out how to see these 3 things clearly:

• Where your money is going
• Why it’s going there
• And what it’s building toward

The Simple Systems That Work

Realising that I didn’t need a perfect plan made the biggest difference for me. None of these things were complicated, and once you apply them consistently, they start to add up.

Here’s what I did:

1. Stop letting money sit idle
If you haven’t heard of high-yield cash accounts, now’s the time to figure it out. Instead of letting your “savings” waste away in a checking account, move them to an account that gives you monthly returns. If you’re not ready to start investing yet, this is your second best option.

2. Separate your money
Instead of one account for everything, I started organising my money based on the account’s purpose: saving, spending, investing.
It helped me keep track of where my money was going.

3. Pay yourself a weekly allowance
This one changed everything. Instead of spending freely and hoping for the best, I gave myself a fixed weekly amount. It made me more conscious without feeling restricted.

4. Make consistency automatic
The people I saw online weren’t relying on discipline every day. They built systems that made good decisions repeatable, and it works! The “hard” part is figuring out what system works best for you. Some people tax themselves before they begin spending, others just stick to their budgeting plan and save or invest whatever’s left over – it’s really up to you.

[If you’re looking for more practical tips, check out “12 Hacks for How to Save Money” or “The 50/30/20 Rule: An Easy Budget System That Works“]

You Don’t Need to Have It All Figured Out

If you’re trying to figure out how to manage money in your 20s, you’re not alone, and also it doesn’t need to be high stakes. What I learned was that you don’t need to have everything figured out to become financially savvy. You don’t need high income, or a perfect plan. You just need to start paying attention. Because most people don’t have a money problem, they have an awareness problem.

They’re not tracking, not questioning, not intentionally deciding where their money goes. Once you fix that, everything else becomes easier to build on. Most importantly it also builds your confidence. And that confidence is what allows you to keep building, exploring and taking bigger steps.

[Feel like you have saving and budgeting under control? Check out Retirement Planning: Why It’s Important To Start Early]