Section 5: Milestones by Decade
Never too young to start!
Your teen years aren’t just about surviving high school. It’s about laying the first bricks of your financial legacy. Think of it like building a skyscraper: the taller you want to rise, the deeper and sturdier your foundation must be.
This is not necessarily only about money. A vast portion of this is about knowledge. Your teens and 20s are prime decades to learn financial literacy, because:
Habits formed early tend to stick.
You learn the right questions to ask before opening accounts, signing contracts, or taking loans.
Knowledge will help you gain confidence. (This is important as you’ll be better prepared to make informed decisions.)
Key Priorities
Learn Money basics. (e.g., budgeting, savings, giving, how bank accounts work)
Read books, listen to videos and podcasts, and gather knowledge from websites (like this one).
Learn the difference between assets and liabilities.
(Straightforward definition: Assets put money in your pocket, and liabilities take money out of your pocket.)
Learn what the F.I.R.E. Community is. (especially Coast F.I.)
Learn how to set goals and create a plan to achieve them.
Practice gratitude. (Gratitude significantly affects finances, and is the secret sauce to joyful living.)
This isn’t about perfection. It’s about progression. You don’t need to have it all figured out. You just need to start. The earlier you begin (especially with gaining knowledge), the stronger your foundation can be.
These may vary depending on your teen and household, but here are a few recommendations.
Starter Steps for Teen Money Management
Open a checking or savings account at a bank you can physically walk into.
There are several advantages to having an account at a local brick-and-mortar bank, including face-to-face support, cash access, in-person deposits, and the opportunity to build meaningful relationships. (Some banks may recognize repeat customers and may offer personalized advice, better rates, or flexibility.)
The downside to local brick-and-mortar banks is that most offer lower interest rates on savings. This is why many only keep part of their money in a local bank for the brick-and-mortar benefits, and then have a secondary account in an online bank that may offer higher interest rates.
Open a Step Card account (or credit card, depending on your teen).
Some teens may not be ready for the responsibility that comes with a credit card, making the Step Card a great option. The Step Card is a free banking app and debit card designed for teens and young adults. It allows them to spend money, save, and even build credit without incurring fees or overdrafts. Parents can monitor the account, and teens get banking experience while staying safe and learning smart money habits.
The Step card functions like a debit card; however, if it’s lost or stolen, any person who finds it won’t have access to your entire bank account. Yes, they may be able to use the balance on the card, but in theory, that’s all they have access to.
Again, credit cards may offer more robust security, but many teens aren’t ready for the financial responsibility that comes with them. Additionally, while some banks offer protection on debit cards, this protection is typically limited. The Step card appears to offer a safer middle ground, providing teens with the freedom to learn while minimizing risk and potentially building some credit.
Open a high-yield savings account.
As mentioned before, traditional brick-and-mortar bank savings accounts often offer lower interest rates, so to get higher yields or interest on the money you’re saving, you may want to look into online banks. This is like putting your money to work for you—the first step in learning how to make money while you sleep.
Open a Roth IRA and begin investing.
This is a legacy move that can help set the teen up for long-term wealth. Contributions are made with after-tax dollars, grow tax-free, and withdrawals in retirement are tax-free. This also introduces the basics of investing and how even small contributions can compound significantly over time. This is one of the most powerful financial moves a young person can make.
Check out these free resources from MoneyGuy.com
Begin working through this Annual Financial Checkup Workbook/Course if they have income.
It’s never too early to start this workbook/course, as it will help them develop their goals, create a plan, and track their progress. They will also learn how having a strong 'why' and practicing gratitude can greatly impact their finances. They may not understand everything at this stage, and that is entirely okay, but it will at least give them an idea of some foundations to work towards.
Every small step you take now becomes a giant leap later.
You’re not just growing up—you’re growing into purpose.
A Powerful Time to Start Something Bold
Starting a business, launching a creative project, or taking a financial risk in your teens or twenties might feel intimidating, but it’s actually one of the most forgiving seasons of life to begin.
In your early years, you have something precious: time. Time to experiment. Time to stumble, and time to learn. You also have time to pivot, rebuild, and grow stronger.
Mistakes made early don’t define you—they refine you. They become the foundation of wisdom and resilience. The earlier you start, the more cycles of growth you get to experience.
Most of us learn best by making mistakes. Your teens and twenties are a prime time to take bold steps, but here’s the catch—skipping foundational financial steps now could cost you heavily later. That’s why at least reading through Section 1 and Section 2 of this course is so important. You might not grasp every detail yet, and that’s perfectly okay. What matters is that you begin building awareness and direction. These early seeds will grow into wisdom, providing you with more knowledge when making financial decisions.
So don’t wait for perfection. Start with purpose. Build with curiosity, and continue to learn as you go. Trust that every misstep is just part of your legacy in the making.
Goals by 20
Read the Milestones by Decade for the 20s!
Understanding a few of the recommended goals early will help you know where you should be heading, and starting on them early will make it easier to achieve them.