Starting a financial journey early can make a world of difference. From starting work to thinking about investing for the first time, building strong financial habits now sets young adults up for long-term success. Engaging with a financial adviser early can benefit young adults, giving them the confidence and clarity to make informed financial decisions. Early guidance helps them understand how to budget effectively, start investing, and plan for short- and long-term goals, laying the foundation for a strong future of financial independence.
First Steps for Young Adults
The first step is gaining a clear understanding of how money is earned, spent, and allocated. Creating a budget, even on a small casual or part-time income, can help build good habits and provide clarity on spending patterns. Apps such as CommBank’s Money Plan make tracking income, expenses, and savings goals simple.
Building an emergency fund early is also essential. Even saving $1,000-$2,000 initially can prevent reliance on high-interest credit cards, which can quickly accumulate debt, and avoid drawing on investments at inopportune times.
Learning the basics of superannuation and the tax system is another important step. Super is often one of the most powerful wealth-building tools available, with added tax benefits. Investing time and resources into education, training, or career development can deliver significant long-term returns, sometimes even more than early investments in shares or ETFs.
Starting the Conversation
When a young adult first meets with an adviser, the focus should be on values-based goal setting. Goals should reflect what truly matters to them, not what peers or society suggest. Whether saving for travel, building financial independence, or buying a first home, understanding priorities is the first step to confident financial decisions.
It’s also important to acknowledge the financial pressures facing young adults today, from housing affordability and rising living costs to establishing a career. Conversations should be practical, jargon-free, and framed around how tools like super, insurance, and investing can help achieve real-life goals, rather than abstract financial targets.
Building consistent habits is more important than chasing perfect outcomes. Saving or investing even small amounts regularly builds momentum and resilience. Advisers can also introduce young adults to areas they may not have considered yet, such as mortgages, first home buyer schemes, insurance, and long-term investing strategies.
Common Questions and Concerns
It’s normal to have questions when starting out on a financial journey, for young adults and for the families supporting them. Many younger adults wonder where to begin, what’s realistic, and whether they’re keeping up compared to others. Some of the most common questions we hear include:
- “Do I earn enough to save or invest?”
- “How do I manage HECS-HELP debt?”
- “Should I worry about super now?”
- “How much should I have in savings?”
- “Can I ever afford property?”
- “What should I invest in, and when?”
Addressing these concerns early with practical guidance helps set realistic expectations, reduces stress, and equips young adults with the knowledge and confidence to make informed financial decisions.
Practical Tips for Building Strong Financial Habits
Building strong financial habits early can make a lasting difference. These practical strategies can help young adults take control of their finances, develop consistency, and make progress toward their short- and long-term goals.
- Set clear values-based goals – Separate short- and long-term objectives, and plan finances around them.
- Start small and be realistic – Even modest weekly savings build consistency. Avoid overspending and trying to “catch up” later.
- Automate savings – Set up regular deposits to savings, super, or investment accounts first. “Forced savings” builds discipline.
- Avoid “bad debt” – High-interest credit cards or loans for depreciating items can hinder progress. Focus on debt that contributes to long-term wealth.
- Invest gradually – Low-cost, diversified ETFs are a simple, long-term way to grow wealth.
- Understand super – Keep it simple and low-fee. Consider consolidating multiple accounts and choosing index options.
- Plan for property early – Even if buying a home feels far off, understanding mortgages, credit scores, and first home buyer schemes now can make future goals achievable.
The Key Takeaway
Financial literacy is about more than numbers, it’s about building good habits, knowledge, and confidence to make informed choices. Engaging with a financial adviser early empowers young adults, strengthens their financial foundation, and prepares them for managing larger wealth in the future. Remember, financial success isn’t about quick wins, it’s about consistent habits, learning along the way, and making informed decisions that grow with you.
At Treysta Wealth, we help young adults get started on the right path. We can arrange an introductory call with Kieren O’Keefe, one of our advisers who is passionate about helping the next generation engage with their finances and use them to achieve their goals.
Don’t leave it too late. The sooner younger adults start planning, the more confident and capable they will be about their financial future. Book an initial meeting with Kieren O’Keefe today to start building a strong foundation for tomorrow.
Written by Mark Nagle, Co-CEO and Executive Director at Treysta Wealth
