Your 20s are an exciting time—full of first jobs, new apartments, and maybe even buying your first car or home. But it’s also a stage where financial missteps can quietly creep in and lead to long-term setbacks. From building credit to saving for the future, the financial choices you make early on lay the foundation for everything that comes next.
To help you navigate these early decisions, we sat down with Mai Vue, Retail Operations Manager at our Onalaska branch, to get her expert advice on common money mistakes and how to avoid them.
Coulee Bank: Mai, in your experience, what are some of the most common financial mistakes people make in their 20s?
Mai Vue: One of the biggest mistakes is not building credit. Good credit plays a major role when you're ready to buy a car, purchase a home, or even rent an apartment.
Another issue is using credit cards without fully understanding how they work. It’s easy to swipe for things you don’t really need, and that can lead to debt piling up fast.
And finally, not saving—either for retirement or in general. A lot of people put it off, but even small contributions now can grow over time and make a big difference down the road.
Coulee Bank: Why is it important to build healthy financial habits early in life?
Mai Vue: The earlier you start, the easier it becomes. When you get used to saving and managing your money in your 20s, you’ll be better prepared to handle bigger expenses later on. If you’ve always set aside part of your paycheck for savings, spending, and bills, it just becomes second nature, and that makes managing your finances way less stressful.
Coulee Bank: What are some budgeting tips you recommend for young adults just starting their careers?
Mai Vue: A great place to start is the 50/30/20 rule: use 50% of your income for fixed expenses like rent and bills, 20% for savings, and 30% for things you enjoy like dining out, hobbies, or travel. It helps you find a good balance between your responsibilities and your lifestyle.
Coulee Bank: How can young people balance enjoying life now while still planning for the future?
Mai Vue: It’s all about priorities. Ask yourself, “Do I need this, or do I just want it?” Then try setting aside a little bit each week for those wants. That way, you stay within your budget and still enjoy the things you love without the guilt.
Coulee Bank: What are some common credit card pitfalls for people in their 20s?
Mai Vue: Overspending is the biggest one. It’s easy to rack up a balance that’s hard to pay off, which leads to interest charges and late fees. That can hurt your credit score and your budget.
Coulee Bank: How can someone build good credit without falling into debt?
Mai Vue: Start with one credit card and treat it like a debit card, use it for purchases you already plan to make. Then, set up automatic payments to pay off your balance weekly. That way, you're building credit while staying in control of your spending.
Coulee Bank: What advice do you give to someone who says they can’t afford to save yet?
Mai Vue: Try autosaving! You can set up your direct deposit to send a portion of your paycheck into a savings account automatically, or create a recurring transfer. I also recommend making that savings account “invisible” in your online banking. If you don’t see it, you won’t be tempted to spend it!
Coulee Bank: Should people in their 20s consider investing? Where’s a good place to start?
Mai Vue: Absolutely! The earlier you start, the more time your money has to grow. One of the easiest ways to get started is through your employer’s 401(k) plan. If they offer a match, contribute at least enough to get the full match, it’s basically free money.
Coulee Bank: Why is retirement planning relevant for someone early in their career?
Mai Vue: Because time is your biggest advantage. Starting young means your savings have more time to grow through compound interest. Even small amounts can add up to a lot later.
Coulee Bank: What strategies do you recommend for paying off student loans on a tight budget?
Mai Vue: Make extra payments when you can, even if they’re small. Those little extras will help reduce the total interest you pay over time and shorten the life of your loan.
Coulee Bank: What are the pitfalls of deferring your student loans?
Mai Vue: You might get some short-term relief, but interest often continues to accrue. That means you’ll owe more in the long run, which can really set you back financially.
Coulee Bank: What financial decision made in your 20s tends to have the biggest impact by your 30s or 40s?
Mai Vue: Unequivocally saving for retirement. It might seem far off, but the money you put away in your 20s can make a huge difference when you’re older.
Coulee Bank: What’s a financial myth or piece of bad advice you hear often that you'd like to debunk?
Mai Vue: That you have to make a lot of money to be able to save. Not true! Even saving a small amount consistently makes a big difference. Just tuck it away somewhere you’re not tempted to dip into.
Coulee Bank: How can young people identify trustworthy sources of financial information?
Mai Vue: Brochures or printed materials from your bank or credit union are usually reliable. And of course, you can always talk to your favorite Coulee Banker; we’re here to help!
Coulee Bank: If you could give one piece of financial advice to your 20-year-old self, what would it be?
Mai Vue: Save, save, save!