But financial advisers say getting into debt and spending more than you earn in your 20s are some of the biggest money mistakes young people can make and it can set you up for a lifetime of poor financial decisions.

Sharon Giblett, a Tauranga-based financial adviser who has a daughter in her 20s, says many young people make the mistake of focusing on today and forgetting about tomorrow.

“It’s about the wants. They aren’t thinking ahead to the consequences.”

An example of that is delaying signing up to KiwiSaver which could make it harder to buy a house in your 30s or have a comfortable retirement.

Giblett advocates avoiding a big student loan if possible. Students should try to start paying back their loan while still studying or better yet avoid getting one if possible by saving up ahead of time.

Auckland-based financial adviser Simon Hassan says the biggest mistake for those in their 20s is spending more than they earn.

“Not only do they start what can become a lifelong addiction to debt … they miss out on the most valuable early savings years

Source: Bay of Plenty Times


Please enter your comment!
Please enter your name here