How your finances change from your 20s to your 30s

By Remy Taylor ·

A lot can change in a decade, political leaders come and go, technology continues to advance and self-driving cars are now actually a thing. And your finances are no different - between the ages of 20 to 30 your relationship with money can undergo a quite the transformation.

From fretting about the cost of your daily coffee, to suddenly needing to seriously consider whether you need a life insurance policy, here are 4 financial differences between your 20s and your 30s:

Your money priorities change:

20s: Your dreams are limitless: the Porsche, the 6-month European holiday and the 5 bedroom house are all written down on the 10-year goals list. But they’re also far away and in the meantime you’re renting in the trendy part of town and eating out on the regular.

30s: You don’t mind spending a bit more to get a quality product, and on the weekend, you find yourself perusing property listings and lists of the best home loans in Australia. The Porsche, the 6-month European holiday and the 5 bedroom house still sound nice - and you’ve got a plan to get them.

Spending vs saving:

20s: Daily shop bought caffeine fix? Guilty. Brunch on a Sunday? You’re in! $20 club entry fee? Forked out without hesitation. We aren’t saying saving in your 20s is unheard of, but it’s also super easy to say ‘I’ll start saving later, and enjoy myself now’.

30s: Now it's a whole different ballpark. Things are dramatically more realistic, there are bills and budgets and you’re forever looking forward to paying off any debts, saving enough for a deposit on a house and building an emergency fund.

You get a good understanding of financial products (sort of):

20s: Things like credit cards, interest rates and home loans are pretty boring (and kind of intimidating.) Sure, you’ve got a bank account and a savings account to go with it, but when you apply for your first credit card, it feels like a huge step.

30s: You’ve paid off the costs of your credit card from years earlier - even employing a balance transfer offer where you need it - and have a pretty good handle on your personal finances. But, ok, sometimes you do still need a bit of help to break through the banking jargon.

You’ve started securing your financial future:

20s: You’re young and having fun, there are parties to go to and holiday’s to go on. You’re so not thinking about insurance policies, why should you worry about them when you’re in your wrinkle-free 20s?

30s: You’ve realised that insurance, whether it be life, home or car isn’t just something your parents talk about. Now that you’ve got a family relying on your paycheck and a mortgage to service, life insurance is looking more and more important to add to your financial toolbox.

There are plenty of life insurance options out there, so start by comparing some life insurance policies below or head over to our life Insurance hub to find a policy that suits you.

Life insurance - page last updated September 26, 2020

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