68 | What I Wish I Knew About Money at 20
Managing money as a Christian mom
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Today’s podcast episode is inspired by this verse:
“Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.” — Proverbs 13:11
When I first heard this verse a few years ago, I didn’t like it.
I wanted to believe it wasn’t true or that somehow I would be the exception. The idea of gathering little by little just sounds so frustrating and painstaking. And if you’re anything like me, impatient, you know how it feels to want everything to happen right away.
Thankfully, my husband and I have spent the last few years with less urgency around money. We’ve been praying for financial increase, but also for wisdom in how we steward our money. Every few months, we seem to learn another valuable lesson about stewardship. I’m thankful to say we’ve spent the last few years doing exactly what this verse says, gathering little by little. It seems we are finally starting to see the fruit of our actions and understand the value of small, consistent actions.
I’m excited to share what I wish I knew about money at 20 in hopes of inspiring you or encouraging you in what you’re already doing!
1. Always Pray About Your Money
Prayer helps align our hearts and reminds us to view money as something we face together, not something that puts us against each other.
Picture this:
Instead of standing across from each other, arguing about money, imagine a basketball between you. You’re both focused on the problem and it feels like you’re attacking each other. Now, walk around it, stand side by side, and face it together. That’s how we get to handle money in marriage. Not as an issue between us, but something we can tackle together!
Praying together helps align your hearts and invites God into your decisions. Often we pray for more money and get a lesson in stewardship we didn’t know we needed. I look back now, and thank God for all the times he didn’t answer my prayer for a larger income. We might not have used it wisely if it happened in my timing.
2. Don’t Expect Money Without Work
I blame social media for my naivety, but I believed in my early 20s that money could come without work and time. I saw all the people creating courses and profitting off the knowledge they had spent years accumulating and thought I could skip over the learning stage. I wish I had spent my early 20s working harder instead of researching passive income.
3. Find a Budget System That Works for You
I tried so many budgeting systems, and felt like a failure when they didn’t work.
Then I realized:
You don’t have to budget like everyone else.
For me:
Weekly budgeting works best
Multiple savings accounts help me stay organized
Not using credit cards keeps things clear
You’re not doing it wrong just because your budgeting system looks different from your neighbour’s. You are doing it wrong if you’re not budgeting at all!
4. Save, Even If It Feels Like You Can’t
If you feel like you don’t have margin to save, ask yourself: Do you ever make extra purchases and not really notice? If the answer is yes, there is room to save.
Set up an automatic transfer to your savings account, TFSA, or high-yield savings account! Start with $500 a month, $100 after payday or as little as $10 a week. Just start somewhere.
We like to set money aside for both long-term and short-term savings. We have many different accounts now, but you don’t have to start this way. Start with one account for an emergency fund or sinking fun.
Here are some examples of the accounts I have now:
Short-term savings:
Sinking Fund (for car repairs, annual insurance payments and other expenses we know are coming)
Car Fund
Long-term savings:
Emergency Fund (in a high-yield savings account for easy access)
Retirement (in an RSP)
Kids Education Fund (RESP)
If saving is new for you, start small. Gather little by little, as the verse says, and you will see an increase over time.
5. Invest the long-term savings
If you have a large sum of money or you’re planning for retirement, it would be wise to speak with a professional.
If you have $50 a month that you want to start investing for a rainy day, you can easily do it yourself through a platform like WealthSimple! You can experiment with stocks if you want to, but I like purchasing ETFS instead. This is a snapshot of the market as a whole so even if your money goes down a little bit over a few months, it has historically always gone up over time. This is a great option for money you don’t need access to over the next 3-5 years.
**this advice is not meant to replace that of a financial advisor
Final Encouragement
I’ve been listening to the Ramsey Show a lot lately, and one of the things that keeps coming up is this: Almost anyone can become a millionaire. Not through luck or quick wins or get-rich-quick schemes, but by decades of small consistent action and following biblical principles. Today is a great time to start gathering little by little.
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