Improving financial wellbeing: Tips for women in their 20s

Your 20s are a time of change, growth, and independence (and that includes financial independence). Whether you're just starting your first job, side-hustling your way through studies, or beginning to build long-term wealth, taking control of your finances now can have a huge impact on your future – especially if you’re a woman.

Data shows^* that in Australia women have a 20% lower financial literacy score than men, and experience 35% higher levels of financial stress. When we look at the 25-29 age group specifically, the difference in financial literacy levels increases to 48% – that’s a huge difference at a time in life when you could be setting yourself up for a healthy financial future.

So, what can you do to make a difference to your financial health? Here are five ways you can improve your financial wellness while you’re in your 20s.

Start with a budget: Live within your means

Budgeting isn’t about restricting yourself, it’s about empowering yourself. By understanding exactly how much is coming in and where it’s going, you’re in control of your money.

Creating a budget helps you prioritise your needs, avoid unnecessary spending, and plan for the things you truly value. Apps like mymo or a good old spreadsheet can help you track and manage your money with ease. Living within your means is the foundation for everything else – saving, investing and avoiding debt.

Build an emergency fund: Because life happens

Unexpected expenses are a part of life. Think car repairs, dental work or sudden job changes – eek! Having an emergency fund (ideally between three and six months of living expenses) means you don’t have to dip into your savings or go into debt when things go sideways.

Our tip? Start small. Even $500 can provide a safety net. Set up automatic transfers to a high-interest savings account and treat paying yourself like a non-negotiable bill.

Pay off debt: Especially the high-interest kind

Debt, particularly from credit cards or ‘Buy Now, Pay Later’ platforms, can quickly sabotage your financial future. Interest accumulates fast, and minimum payments barely make a dent.

Prioritise paying off high-interest debt first to save money in the long run and protect your credit score. Consider the avalanche or snowball method to tackle your balances and always pay more than the minimum if you can.

Invest in yourself: Boost your financial confidence

Financial literacy isn’t just for economists or accountants. Learning the basics of money management can transform your mindset and future.

There are loads of accessible resources like apps, podcasts and online courses, and many of them are free. Even some TikTok creators are breaking things down in simple, relatable ways.

Our free tool, Your Financial Wellness, can help demystify everything from money basics to investing. The more you know, the less overwhelmed you’ll feel, and that’s priceless.

Think long-term: Take care of your superannuation

Retirement might feel light years away in your 20s, but decisions you make now can seriously impact your future, especially when it comes to superannuation. Women often face a super gap when compared with a man’s retirement balance, due to time out of work for parenting or taking on part-time roles. In fact, the data^* suggests this difference could be as high as 50%!

To minimise this, consider making additional concessional contributions (before-tax payments) when you can. A small effort now can lead to a much more secure future later on in life.

5 key steps

Improving your financial wellness doesn’t mean having it all figured out. It just means taking small, confident steps toward financial freedom. By budgeting wisely, building a safety net, tackling debt, investing in your financial knowledge, and thinking ahead, you’re laying the groundwork for a more secure, empowered future. Whatever that may look like.

Remember, your 20s are the perfect time to learn, make mistakes, and grow – financially and otherwise. So, what are you waiting for? You've got this!

*Data from Your Financial Wellness, February 2025.

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