As your life evolves, so do your financial needs - and potential pitfalls it's best to avoid. This week, we've compiled a comprehensive guide to the most prevalent financial missteps made by adults in each decade. 

Everyone's financial dilemmas will change over the years. Looking back even a decade in your life may reveal some surprising differences in your priorities and responsibilities. While your financial outlook, lifestyle, and priorities are unique, simple awareness of some of the most common pitfalls experienced by many adults in each decade empowers you to recognize potential similarities in your own life. 

Why Organize by Decade?

While we've broken down this week's theme into decades for clarity, it's crucial to recognize that these challenges and opportunities don't follow a one-size-fits-all timeline. Our unique life situations, societal changes, and economic fluctuations all deeply influence our financial independence and responsibilities. So please consider reviewing all articles, even if they don't technically apply to your specific decade of life.

That said, in our 20s, the journey towards financial independence begins. Building good credit, increasing income, and learning to save and spend responsibly are all crucial skills to develop. This decade is also the time to start planning for your financial future, as the decisions you make in your 20s can significantly impact your financial health later on. However, it's important to acknowledge that this path looks different for everyone. Some young adults may already have significant responsibilities like supporting a family or managing student loans. And while entry-level jobs may be plentiful, those jobs don't always offer a springboard to financial stability - especially in an economy marked by inflation and shifting job markets. 

In our 30s, new responsibilities like a spouse or partner, children, and a mortgage may take center stage. Your income is likely to increase, but so will your expenses. It's essential to resist the urge to keep up with others' lifestyles and focus on long-term financial security. Some in their 30s may also overlook increasing retirement savings to match any increase in income during this decade - a common mistake. By starting to invest as early as possible and increasing your contributions as early as possible, your money has more time to grow into a substantial retirement nest egg.

For many, entering their 40s means earning more than ever, but even so - is spending aligned with long-term goals? It's possible to earn a lot of money but waste too much because of a lack of budget priorities. For example, you may be able to afford to lease a new car every few years, but is that the best way to reach your financial goals? Ideally, as the reality of retirement becomes more apparent, those in their 40s will choose to revisit their long-term financial goals, ensuring that retirement investments are fully funded and appropriate for their risk tolerance. Not having a solid financial plan in place by now is one of this decade's most costly financial pitfalls.

Obligations vary wildly for people in their 50s and 60s - some still care for children (or pay the bill for college), others care for their aging parents, and many shoulder both responsibilities simultaneously. This "sandwich generation" faces many financial issues, which can often be summed up as one problem: placing the needs of others before their own financial future. While caring for family members is a must, putting one's financial needs on the back burner may come at the expense of long-term financial security.

Whether you're navigating the challenges of financial independence without a safety net, managing a non-linear career path, or adjusting your financial plans to fit a non-traditional life trajectory, our goal is to empower you to make informed decisions that safeguard your financial future.