The #1 Money Mistake Women in Their Twenties Make

By Taryn Anderson

Finances are notoriously difficult to manage, and some of us seem to have a handle on money management sooner than others. But there is one common difference between men and women’s savings habits, especially among millennials.

The most common mistake women in their twenties when it comes to finances is not saving enough money.


52% of women do not feel confident managing their money.

Most Americans think the ideal age to start saving for retirement is at 22 according to The Fool, but over one third of Americans have zero retirement savings (CNBC). There is definitely a disconnect between how much we think we should be saving versus how we actually manage our money in reality.

But why do women save so much less than men? Only 52% of women report being confident when it comes to managing their money (ML), and while women have been historically paid less than men, women also have varying money goals and have a higher cost of living.

The Gender Wealth Gap

Women on average invest less aggressively than men in their nest eggs, setting them behind in lifetime earnings and savings projections. The earlier you start investing, the better as interest compounds over time, setting those late to the game behind.

According to Merrill Lynch, the cumulative lifetime earnings gap between men and women of retirement age between men and women at retirement age is over $1 million.


41% of women wish they had invested more of their money.

Start Saving Strategically

So how much should you be putting away every month? According to experts, at least 20% of your income should be going to savings. To determine how much you should be saving from your paycheck every month, put together a budget for your monthly spending and get clear on your future plans.

To achieve finance security, women should be putting away more for the retirement, unexpected emergencies, and big goals (hello homeownership!) sooner rather than later.