10 financial lessons that you need to learn as you advance through life
Soaring rents, rising inflation and student debt are among some of the reasons millennials have struggled to purchase their own homes or build up their savings.

A core tenet of personal finance is that you should make decisions about your money based on your priorities. But the goals you have at age 26 can (and probably should) look very different from when you're 66, which is why your financial know-how needs updating from time to time. Read on to learn more about some important financial lessons to learn by your 20s, 30s, 40s and 50s.

Financial lessons to learn...

...in your 20s

UFB Secure Savings Learn More UFB Secure Savings is offered by Axos Bank ® , a Member FDIC. Annual Percentage Yield (APY) Up to 5.25% APY on any savings balance; add a UFB Freedom Checking and meet checking account qualifications to get an additional up to 0.20% APY on savings

Minimum balance $0, no minimum deposit or balance needed for savings

Fees No monthly maintenance or service fees

Overdraft fee Overdraft fees may be charged, according to the terms; overdraft protection available

ATM access Free ATM card with unlimited withdrawals

Maximum transactions 6 per month; terms apply

Terms apply. Read our UFB Secure Savings review.

Marcus by Goldman Sachs High Yield Online Savings Learn More Goldman Sachs Bank USA is a Member FDIC. Annual Percentage Yield (APY) 4.40% APY

Minimum balance None

Monthly fee None

Maximum transactions At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account

Excessive transactions fee None

Overdraft fee None

Offer checking account? No

Offer ATM card? No Terms apply.

Don't wait until you're older to start investing for retirement As with many facets of money management, the sooner you start taking action, the better. This is doubly true when it comes to investing for retirement. When you start investing money at a younger age, your balance has a longer time horizon to weather any economic downturns and grow more. It can be easy to think that saving for retirement doesn't concern you yet because you're young but don't wait until your 30's or 40's to start investing money for your golden years. Because you won't need to touch these funds until decades later, you can also afford to stomach riskier assets that have a higher potential for large returns. Begin by contributing money to your workplace 401(k) account (assuming you have one). If you can't afford to contribute the maximum amount ($22,500 for 2023), at least make sure you're contributing enough to receive your employer's full match. Once your 401(k) is all taken care of, it's a good idea to shift your focus over to IRA accounts. With a Roth IRA, you'll invest post-tax money in the account. Your investments will grow over time and you won't be required to pay taxes on withdrawals in retirement. You can only contribute $6,500 to a Roth IRA per year and cannot make retroactive contributions for years when you didn't fund the account. Because of this, it's vital to save in your Roth IRA as early as possible. Wealthfront and Betterment are two popular options that offer IRA accounts and robo-advisors to help you pick and manage your investments.

Wealthfront Learn More Minimum deposit and balance Minimum deposit and balance requirements may vary depending on the investment vehicle selected. $500 minimum deposit for investment accounts

Fees Fees may vary depending on the investment vehicle selected. Zero account, transfer, trading or commission fees (fund ratios may apply). Wealthfront annual management advisory fee is 0.25% of your account balance

Bonus None

Investment vehicles Robo-advisor: Wealthfront Automated Investing IRA: Wealthfront Traditional, Roth, SEP and Rollover IRAs Other: Wealthfront 529 College Savings

Investment options Stocks, bonds, ETFs and cash. Additional asset classes to your portfolio include real estate, natural resources and dividend stocks

Educational resources Offers free financial planning for college planning, retirement and homebuying Terms apply.

Betterment Learn More Minimum deposit and balance Minimum deposit and balance requirements may vary depending on the investment vehicle selected. For example, Betterment doesn't require clients to maintain a minimum investment account balance, but there is a ACH deposit minimum of $10. Premium Investing requires a $100,000 minimum balance.

Fees Fees may vary depending on the investment vehicle selected, account balances, etc. Click here for details.

Investment vehicles Robo-advisor: Betterment Digital Investing IRA: Betterment Traditional, Roth and SEP IRAs 401(k): Betterment 401(k) for employers

Investment options Stocks, bonds, ETFs and cash

Educational resources Betterment offers retirement and other education materials Terms apply. Does not apply to crypto asset portfolios.

Don't use credit cards to buy more than you can afford each month It can be easy to see credit cards as "not real money" since you don't actually see the dollar bills leaving your wallet when you pay for things. Because of this, it's important to be cautious in your use of credit cards so you don't rack up a ton of debt. Credit cards charge interest when you don't pay your balance in full every month, so every purchase actually costs you more. Plus, carrying too much of a balance in relation to your credit limit can lower your credit score. When you apply for loans, credit cards and even a mortgage with a lower credit score, you'll face higher interest rates since you're seen as a riskier borrower. Make sure you don't spend more than you can afford to pay off each month to avoid amassing a mountain of credit card debt. If you're in college, there are some credit cards that are actually geared toward students. The Discover it® Student Cash Back card, for instance, considers applicants with fair or no credit and doesn't come with an annual fee, making it more affordable for students (who often have limited income) to manage.

Discover it® Student Cash Back Learn More On Discover's secure site Rewards Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases-automatically.

Welcome bonus Discover will match all the cash back earned for all new cardmembers at the end of your first year

Annual fee $0

Intro APR 0% for 6 months on purchases

Regular APR 18.24% - 27.24% Variable

Balance transfer fee 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Foreign transaction fee None

Credit needed Fair / New to Credit

*See rates and fees, terms apply. Read our Discover it® Student Cash Back review.

The Capital One SavorOne Student Cash Rewards Credit Card (see rates and fees) is another solid option since it also doesn't carry an annual fee, but it offers a small, but exciting, welcome bonus: Cardholders can earn $50 when they spend $100 within the first three months.

Capital One SavorOne Student Cash Rewards Credit Card Learn More Rewards Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through Nov. 14, 2024; 8% cash back on Capital One Entertainment purchases; unlimited 5% cash back on hotels and rental cars booked through Capital One Travel (terms apply); 3% cash back on dining and at grocery stores (excluding superstores like Walmart® and Target®); 3% cash back on popular streaming services and entertainment; 1% cash back on all other purchases

Welcome bonus Earn a $50 cash bonus when you spend $100 on purchases in the first three months from account opening.

Annual fee $0

Promo APR None

Regular APR 19.99% - 29.99% variable

Balance transfer fee 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you

Foreign transaction fee None

Credit needed Fair

See rates and fees, terms apply. Read our Capital One SavorOne Student Cash Rewards Credit Card review.

...in your 30s

Just because you have more money doesn't mean you have to spend more money As you get older and progress through your career, you'll (hopefully) start to earn more money. It may sometimes be tempting to simultaneously upgrade your car, move to a fancier apartment, splurge more on nights out, do more shopping and so on. This is called lifestyle creep, and it occurs when you earn more money so you inflate the amount you spend on discretionary items. The key to knowing the difference between lifestyle creep and simply enjoying a higher level of income lies with your goals. There's nothing wrong with spending your money on purchases that make you happy. It's only when you overspend and threaten your progress toward your long-term goals like buying a house, continuing your education, and saving for your kids' college tuition that you need to take steps to rein things in. Don't wait until your kids are 18 to start thinking about how you'll pay college tuition If you're at a phase of life where you have young children, now's a good time to start thinking about what their college tuition needs may look like. If you plan on providing some financial assistance — whether it be for their entire undergraduate education or just the first year — you'll likely want to save or invest for it while you still have a long time horizon to do so. Saving for your kids now will help them avoid taking on too much student loan debt to pay for college. While a high-yield savings account can be helpful for saving for large purchases, a 529 plan might be the better tool in this case. A 529 plan is a state-sponsored savings plan designed for funding a college education. The growth is tax-deferred and withdrawals are tax-free for qualifying education expenses. Even if you're unsure how much financial aid or institutional scholarships your child will qualify for once they start applying to colleges, having some money set aside for them is still a lot better than having nothing at all. Paying down debt improves your financial flexibility One of the best ways to protect your financial future is to pay down any existing debt you hold. That money you spend on loan balances and credit card statements can then be used to build your savings, invest in the market and live your best life. High interest rates often prevent people from paying off debt because they suck up money you want to go toward the loan's principal. This is a familiar problem to anyone with significant credit card debt, but using a balance transfer credit card with a 0% intro APR period would allow you to make payments toward your balance without being charged interest for a limited time period. This gives you time to focus on paying down the debt's principal and freeing yourself from a big financial burden. The Citi® Diamond Preferred® Card is one solid contender since it offers 0% intro APR for 21 months on balance transfers, then 18.24% - 28.99%. It does come with a 5% balance transfer fee, which is fairly typical of many balance transfer cards. The Discover it® Balance Transfer credit card weighs in at a lower balance transfer fee — 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms) — but offers a 0% intro APR period on balance transfers for the first 18 months, then 17.24% - 28.24%.

Citi® Diamond Preferred® Card Learn More On Citi's Secure Site Rewards None

Welcome bonus None

Annual fee $0

Intro APR 0% for 21 months on balance transfers; 0% for 12 months on purchases

Regular APR 18.24% - 28.99% variable

Balance transfer fee 5% of each balance transfer; $5 minimum. Balance transfers must be completed within 4 months of account opening.

Foreign transaction fee 3%

Credit needed Excellent/Good See rates and fees.Terms apply.

Discover it® Balance Transfer Learn More On Discover's secure site Rewards Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases-automatically.

Welcome bonus Discover will automatically match all the cash back earned for all new cardmembers at the end of your first year.

Annual fee $0

Intro APR 0% for 18 months on balance transfers; 0% for 6 months on purchases

Regular APR 17.24% to 28.24% Variable

Balance transfer fee 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Foreign transaction fee None

Credit needed Good/Excellent *See rates and fees, terms apply.

...in your 40s

Don't stop increasing your income Anyone at any age should always keep opportunities for increasing their income in mind. But in your 40s, you may have some particularly big expenses to prepare for — such as supporting your aging parents financially or relocating your entire family for a new career opportunity. Having more income makes it less stressful to cover these kinds of costs. Some common ways to earn more money are to ask for raises at work when appropriate and change jobs for a more significant salary bump. Reaching your financial goals is often a team effort Your 40s can be filled with big-ticket expenses, especially if you're buying a home, expanding your family, paying for a child's college education, caring for aging parents and increasing your retirement contributions. All these middle-age milestones can feel daunting to manage, but the good news is you don't have to do it all alone. If you've never worked with a financial planner before, now would be a great time to find one. They can often take a look at your financial circumstances and goals and offer advice you may not have considered. They're also able to help you plan for a variety of events, including retirement, divorce, marriage, loss of income, an increase in income and more. Financial planners excel at spotting opportunities that help you reach your most significant goals. So even if you have your own degree in personal finance, you can still benefit from consulting with a planner to get additional advice. To find a financial planner, start by seeing if any services are offered by your employer as a benefit. If this isn't something that's available to you, you can use Zoe Financial's matching tool to filter financial planners based on your needs.

...in your 50s

Catch-up contributions can make a bigger difference than you might think Catch-up contributions are designed to allow individuals over the age of 50 to stash away a little extra cash each year so they have more money to withdraw from tax-advantaged retirement accounts like their Roth IRA or traditional IRA. For 2023, individuals are allowed to contribute up to an additional $1,000 to their IRAs (both Roth and traditional accounts). This brings their contribution limit up to $7,500. So let's say a 50-year-old takes advantage of that increased limit and contributes $7,500 per year until they leave the workforce at the traditional retirement age of 65; they will have contributed $112,500 over the course of those 15 years. But if they had adhered to the $6,500 contribution limit for people under age 50, they will have stashed away $97,500 over 15 years. That $15,000 difference may not seem like a life-changing amount, but it can grow exponentially since it's being invested. Plus, outliving one's savings is a major concern for many older individuals. Stashing away as much money as possible while you still earn an income can help lessen the likelihood that you'll run out of money after entering retirement. Don't wait until the last minute to think about medical care in retirement Out-of-pocket healthcare expenses can really eat away at your retirement savings once you're no longer working and don't have an employer-sponsored health insurance plan to fall back on. According to Fidelity's 2022 Retiree Health Care Cost Estimate, the average couple who retires at age 65 can expect to spend around $315,000 on healthcare expenses in retirement. Because of this, you don't want to wait until you've already retired to start thinking about how you'll afford any medical care you may need. Use this last decade before retirement to fill any potential gaps in what you may be able to afford in the future. This is another area where it could make a lot of sense to talk to a financial planner who can recommend specific savings vehicles, like a health savings account, to help you grow your nest egg for health care costs even quicker.

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Bottom line

Individuals at different life stages likely have different financial goals they'd like to prioritize. While these lessons are great starting points, it's important to consider what you personally would like to achieve and which goals fit your personal circumstances. When in doubt about what moves make the most sense for you, consult with a financial professional who can provide personalized advice. Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.

For rates and fees of the Discover it® Student Cash Back, click here. For rates and fees of the Discover it® Balance Transfer, click here.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.