The Financial Foundation No One Taught Us in School

By: Ashley Guapo

Just a year ago, I graduated from Loyola Marymount University, where I received an amazing education. I was raised by two parents who instilled in my sister and me the value of financial independence. At 15 years old my mother immigrated to the United States from Cuba, where she grew up without the resources and knowledge to have financial security. Like many immigrants, her decisions weren’t driven by choice but rather by necessity. My father put himself through undergrad and graduate school, and he made sure my sister and I would not need to carry the same financial stress he experienced as a young adult.

Even with financially responsible parents and one of the best educations, I still didn’t feel equipped to handle the financial responsibilities headed my way after graduation. Fortunately, I work in an industry that taught me everything that goes into laying the foundation for financial independence. But for those, who don’t go into finance, stepping into the real world right out of college and navigating new financial obligations can be scary and difficult. Gen Z has the lowest financial literacy score out of any generation, answering only 35% of basic personal finances questions correctly. That lack of knowledge results in 73% of Gen Z reporting the highest rates of financial stress which affects all aspects of life and their wellbeing.

For people in their 20s, financial independence is one of the most empowering foundations one can have to get them through the financial stressors. It impacts our career moves, relationships, and decisions we make to discover ourselves in this pivotal time of life. Your 20s are the perfect time to start building that foundation. Most of us in our 20s just graduated college, have fewer financial obligations than in the years to follow, have time on our side, and have the time to focus on building strong habits before the bigger stressors arrive, like mortgages and kids.

Financial independence isn’t about chasing the highest-paying careers or putting every dollar into investments. It starts a lot simpler. Set aside time to understand your income, your expenses, debts, and the goals you actually want to save for. This first step is easy to avoid. I know I myself found it to be intimidating to confront exactly how much I could spend and what I could save. And once you realize what you can spend and need to save, it can be scary to adapt your lifestyle to enforce those financial habits.

The next step is to change your mindset regarding savings. As a college student, I found it hard to rationalize savings. I felt that there was always something to spend my money on and anything I thought was worth saving for was years away anyway. However, I started to shift that thinking by considering saving just like any other monthly bill I had to pay. I set a number that I found comfortable and that fit into my budget. I even went as far as opening my savings account at a different bank from where my checking account, so those funds were out of sight, out of mind. That small change made a big impact. It allows me to save enough to travel to France this summer with my best friends from college! It was so satisfying knowing I covered every bit of the trip myself and watching that savings turn into one of the most memorable experiences of my life.

Another factor is understanding credit. When I first got my credit card, it was hard to not think of it as free money, a common mistake that many 20-year-olds make who are newly responsible for all their own expenses. But every use can impact your credit score, reflecting how responsible you are and how capable you are at repaying your debt. It is something that is often overlooked even though it follows you through your adult life, impacting your ability to rent an apartment, finance a car loan, and eventually buy a home. To maintain a good credit score, I only use my card to pay for essential expenses like groceries, gas, and utilities. That way, the expenses that must get paid go on the card, while discretionary spending will come from whatever is left in my checking account for the month.

Once you have laid the foundation for saving and managing your income, the next step is investing. This part of the process can be most intimidating as there are various accounts. But the three most important accounts for someone in their 20s are a 401(k), Roth IRA, and individual brokerage account. A 401(k) is an employer-sponsored account with tax-deductible contributions and, often, employer matching, which is essentially free money added to your account and earmarked for retirement. A Roth IRA is another retirement account allowing contributions to grow tax free, making it the crown jewel of retirement accounts. Because income limits can make you ineligible to make contributions, it is essential that you take advantage of these accounts while you can. Especially in your 20s when you are likely in the lowest tax bracket, you'll ever be in. Lastly, an individual brokerage account gives you more flexibility than a retirement account, putting money away for longer term goals, while building wealth over time.

When it comes to your relationships in your 20s, it can be easy to let your friends’ or partners’ financial status stand in the way of yours. Examples of this are splitting expenses unevenly, relying on someone else’s financial success, or putting off savings for your personal goals when the relationship seems stable. But it is so important to support yourself regardless of your relationship status. Seeking financial independence isn’t about not trusting your partner, but you want to make sure you will always be in a position where you choose a relationship because you want to and not because you have.

Financial independence is not something achieved by luck or accident. It takes dedication, patience, and one step at a time. You don’t need a high paying job or financial degree to accomplish this. You just have to take that first step before life gets more complicated and busier than it already is. The work you put into your personal finances and the habits you develop now will carry through your 20s and beyond.

Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California. Gerber Kawasaki Wealth & Investment Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Gerber Kawasaki Wealth & Investment Management 's current written disclosure brochure filed with the SEC which discusses, among other things, Gerber Kawasaki Wealth & Investment Management's business practices, services and fees, is available through the SEC's website at: IAPD - Investment Adviser Public Disclosure - Homepage .

Ashley Guapo is a Financial Advisor of Santa Monica, California-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$4.78B billion in assets under management and assets under advisement as of 6/30/26. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results."