3 Financial Mistakes Young Adults Should Avoid with Rachel Wong

Jan 9, 2025

Ask episode

Chapters

Transcript

Episode notes

“The way of a fool is right in his own eyes, but a wise man listens to advice.” - Proverbs 12:15

It’s good to learn from your mistakes, but it’s even better to learn from someone else’s. Rachel Wong joins us today with three big financial mistakes that young adults often make…so you can avoid them.

Rachel Wong is an Accredited Financial Counselor® and the creator of Open Hands Finance: a biblically-based content curriculum that teaches money skills to emerging adults.

Money Missteps: 3 Easy Mistakes To Avoid As A Young Adult

Money management is a crucial skill, especially for young adults just starting their financial journey. Here are three key financial mistakes young adults often make and how to avoid them:

1. Waiting to Save for Retirement

Many young adults think they’ll start saving for retirement once they “make more money.” This delay can cost them valuable years of compound interest. Starting in your 20s is like taking a leisurely walk—manageable and effective. Waiting even a few years turns the journey into a sprint.

Tip: Open a Roth IRA and start contributing small amounts monthly. Even $25 a month can grow significantly over time.

2. Waiting to Start Giving

Some believe they’ll start giving once they earn a larger paycheck. But let’s remember the story of the widow’s mite. Despite her poverty, she gave anyway, reminding us of what it means to be faithful in our giving, regardless of our income.

Tip: Begin giving a small, regular percentage of your income now. It’s not just about generosity—it’s about developing a habit that aligns your heart with God’s abundance.

3. Relying on Willpower for Savings

Manually setting aside money every month can be challenging. That’s why automating our savings can help when we struggle with consistency.

Tip: Automate savings and retirement contributions. Set up a monthly transfer to ensure consistency, regardless of life’s demands.

Teaching Young Adults to Manage Money Biblically

Open Hands Finance combines biblical wisdom with actionable exercises, such as setting up a budget and opening a Roth IRA. The program includes a unique matching incentive—sponsored by parents, universities, or third parties—to encourage participation.

The curriculum’s student-led approach makes it relatable and impactful. It’s not just theoretical; it equips participants with tools to live below their means, practice generosity, and plan for the future.

If you’re a college student or young professional—or know someone who could benefit—visit OpenHandsFinance.com to learn more about the curriculum and resources.

Money is a resource God has entrusted to us. Managing it wisely allows us to live generously and reflect His abundance. Start today and set yourself on a path of faith-filled financial stewardship.

On Today’s Program, Rob Answers Listener Questions:

What are your thoughts about a company called Thrivent Financial? Are they a reputable and trustworthy company that does a good job? Also, would moving around $150k from my 401(k) into an annuity with a 1.1% fee and a 6% guarantee be a good move?
Can I do a home equity line of credit to pay off some of my debt, like a few credit cards and some accumulated bills?

Resources Mentioned:

Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.