Mon Mar 10 2025, by Tyler Gardner

4 Essential Financial Accounts to Open in Your 20s

Here are the only four accounts I would ever open in my 20s. You might want to save this video because this advice is as true today as it will be in 20 years. I'm Tyler, a former financial advisor and portfolio manager, and I create financial content for free to help you understand your investment options.

1. Checking Account

The first account is a checking account. I know, it sounds boring, but I would only use it to deposit my paycheck and pay my one to four-week bills. The goal of this account should always be to maintain a net zero balance. It doesn’t pay me any money on my money.

2. Roth IRA

Number two is a Roth IRA. This account is way less boring. I get to fund it with post-tax dollars and invest it in whatever I want for the long term. Just $50 a week invested in low-cost index funds within a Roth IRA could turn into over $500,000 in 40 years. Plus, I can withdraw that $50 anytime, penalty and tax-free if I need it.

3. 401(k)

Number three is a 401(k), but only if you have access to an employer match. On a $50,000 salary with a 5% employer match, that's an extra quarter of a million dollars from the company over 30 years. Take it or leave it, but I would take it every time.

4. Health Savings Account (HSA)

Finally, number four is a health savings account (HSA). This account is only accessible if you have a high-deductible health plan. Contributions are tax-deductible, it grows tax-free, and you can spend the money on any healthcare needs 100% tax-free. This account is one of the best financial tools you can have for managing healthcare costs.

Conclusion

If you want to know more about any of these accounts, sign up for my free newsletter in my bio. Every Sunday morning, I'll send over some insights to help you get one step closer to where you need to be.

Source