I asked a millennial, Gen Xer and baby boomer for their best money tips for young people today

Navigating money in your early 20s can feel like uncharted territory. And while it’s true that today’s economy might be tougher than it was for our parents or grandparents, young people also have more free information at their fingertips. And some advice holds true throughout the decades.

To tap into generational wisdom, I asked millennial, Gen X and baby boomer financial experts about their early 20s and how the economic landscape resembled or differed from today’s. I also asked, “If you were sitting across from a 20-something, what top money tips would you give?”

Here’s what they had to say.

Jasmine Renae Ball, millennial

A financial planner at Bamboo Financial Partners and a CFP (Certified Financial Planner) board ambassador, Jasmine Renae Ball works with clients from ages 18 to 87. And she’s well-versed in how young people can make the most of their money.

“Income doesn’t translate to wealth and good money habits,” Ball says. “Some of my wealthiest clients have the worst habits, and some of my clients that have lower paying jobs are the wealthiest in terms of [habits] — they’ve got their savings, they’ve got their investment, they’re living within their means.”

Ball is a first-generation college student and became financially independent when she left home at 17. “I don’t remember anybody talking to me about budgeting or savings or credit cards,” she says about her childhood. In her early 20s, she went into credit card debt while living in an expensive city and keeping up with fast-paced friends. It wasn’t until she began spending time with more financially savvy peers that she realized you could have life experiences while still practicing good money habits.

“I had assumed if you were going to have fun and do cool things, you almost had to go into debt,” Ball says. She began tracking her income and expenses and setting money aside for her monthly debt repayment. Even though it kept her from making other discretionary purchases, “it helped me to know it wasn’t forever, it was just for now,” she says.

Now, Ball helps her clients avoid the same pitfalls.

Ball says that people of older generations often think you should tighten your purse strings and skip experiences until you’re debt free. But for young people with six figures of debt — especially given rising tuition costs — it could be decades before their debt is paid off.

Instead, when her clients get a bonus or have extra cash, Ball suggests they put 50 percent of it toward debt repayment or savings and use the rest for discretionary spending. “We just can’t be in a constant state of punishing ourselves,” she says. “You also need to live today and reward yourself for the good decisions that you’re making.”

It’s not too early to ask for help with your money. Ball offers a financial planning track specifically for recent college graduates. “Building those relationships early helps you grow and make good decisions where you hopefully don’t have to learn as much by trial and error,” she says.

It’s also good to have an ongoing, positive relationship with your bank or card issuer. Keeping your accounts in good standing could work in your favor in case you ever miss a payment or accidentally overdraw. A phone call to customer service could clear things up if they see that you’re normally a responsible account holder.

If you’re ready for a credit card, get strategic about which ones you apply for since each application may lead to a hard inquiry and temporary ding to your credit score. Ball suggests choosing a card that aligns with your spending and lifestyle.

If you like to travel, a travel rewards card lets you earn points or miles that you can use to book either through the card issuer’s portal with a number of different brands or with a specific airline or travel brand. If you’re someone who dines out or drives often, a cash back card might be more up your alley. Or if you have a limited credit history, you could start off with a secured card to practice using credit and build your credit score.

Mary Hines Droesch, Generation X

Mary Hines Droesch is the head of product for consumer, business and wealth management banking and lending at Bank of America. After graduating from Boston College, Droesch moved back in with her parents with $70,000 in student loans. She was also $500 in credit card debt. “It was all Chinese food orders, but it took me years to pay off that Chinese food,” she says with a laugh.

The money she saved on rent went toward repaying her debt as aggressively as she could. “I was very adamant that I didn’t want to carry this massive amount of debt into my late 20s,” Droesch says. But she admits that her laser focus on debt repayment may have held her back from other life experiences.

“Now, I have the money but don’t have the time,” she explains. “I have children and a job and things like that.”

After paying off her debt, she enrolled in Columbia Business School, which meant another student loan. Upon graduation, she shared a one-bedroom apartment with a friend to save money. If there’s a moral of the story, it’s that Droesch was willing to give up independent living to meet her long-term financial goal of being debt free.

Droesch chose debt repayment over living alone. But she also chose city life over the suburbs and going back to school over continuing on her first career path.

“Everyone has to decide what choices are right for them,” she says. “It could be — I really want that studio apartment, I don’t want to have a roommate again, but I’m not going to take taxis or Ubers and I’m not going to go to Starbucks. I’m just going to cook at home and take public transportation.”

If you’re budgeting with a tight income, it’s still possible to save while enjoying small luxuries.

It wasn’t until her early 30s that Droesch says she was able to save as much money as she wanted to. But even in the throes of debt repayment, Droesch also set aside money for a cushion, or emergency fund, in case of job loss or unexpected costs.

She suggests using a “set it and forget it” technique for saving, where you set up an automatic transfer to savings so it’s not readily available for spending. You can do this through your bank or, sometimes, right from your paycheck. These savings could be for an emergency fund or a future big expense. In fact, Droesch created an automatic transfer for herself 30 years ago and still has it set up today.

“It feels really expensive to get started these days,” Droesch admits. She’s noticed that Gen Zers are focused on their financial goals — and not shy about it.

As the loud budgeting trend alludes to, many young people today are honest about what they can’t afford and how they’re managing spending. If that group vacation or apartment doesn’t fit in their budget, a Gen Zer might explain why to their friends or post on social media. Droesch says her generation wasn’t that way. “I would have been embarrassed to say that I couldn’t do everything my friends were doing,” she says.

Don Grant, baby boomer

Don Grant, principal at Sabre Wealth and a CFP Board Ambassador, joined the Navy right after high school. The Vietnam War had just ended, and he wanted to reap the benefits of the GI Bill to pay for college and usher in his early 20s.

Grant says he paid more for books than tuition and rented a studio apartment for $115 a month. He bought his first house at 20 years old for $39,500 and sold it years later for $400,000. But he’s sympathetic about how much tougher the financial landscape is today for young people.

“Not only are they saddled with education debt, it’s more expensive to buy a house, it’s harder to get that down payment, it’s harder to save for retirement,” he says. “The challenges are much greater than they were when I was that age.”

In his early 20s, Grant’s only bills were for utilities and a phone line. Today, he points out that young people pay for things like Spotify, streaming services, gym memberships and other subscription-based services — which can quickly add up.

Grant suggests regularly checking on your monthly payments to see whether you still need that subscription and if there’s a cheaper option out there. You may even be able to call some companies and negotiate your subscription fee down, especially by price-comparing other companies. There are also apps to help manage your subscriptions.

The sooner you start earning compound interest — no matter how small the investment — the better for your future retirement. “What it boils down to is time,” Grant says. He explains that someone who invests $1,000 every year from age 19 to 27 will have more at age 65 than their friend who invests $1,000 a year from age 27 to 65.

You can use Bankrate’s investment goal calculator to see how the power of compound interest can help you reach your investment goals. To plan for 50 years down the road, start investing in a 401(K) or IRA today.

Grant recommends having at least one source of passive income that’s not tied to the market. While investments are a great way to grow your money, you can also start a side gig — ideally one that can eventually run itself — buy property to rent out or invest in a small business.

It’s possible that time and the housing market were in Grant’s favor 15 years ago, when he bought a rental house for $53,000. Eleven years later, the rent had paid for the house. Now, the property is worth $160,000 and he owns it outright, while still getting $1,400 in monthly rental income. Buying a house or any asset might feel daunting to a young person. But if you can find the means or save up for it, “it will pay off in spades down the line,” he says.

The bottom line

Just like the experts above did, you’ll learn many money lessons from trial and error. But habits like creating a debt repayment plan, setting up automatic savings and using the power of compound interest can get you to your financial goals more quickly.

To learn more, check out these seven things I wish I’d known about money in my early 20s.