A banking expert has warned Australians to be wary of the financial mistakes they are most susceptible to at each stage of life.

Nic Emery, head of deposits and transactional banking at ME, said it was crucial not to miss the opportunities for squeezing “the most from your money” in every decade.

ME bank’s Nic Emery reminds Australians to get the most from their money in all stages of life.

“From starting out as a young adult to hanging up your work boots in retirement, there are opportunities to get the most from your money at every stage,” he told The New Daily.

The banker’s warning followed a new report this week on global wealth that ranked Australia highly, but also revealed we are descending deeper into debt.

Average Australian wealth is roughly $US375,000 per adult, and the median $US162,000, putting us second in the world behind Switzerland, according Credit Suisse, which published the report on Wednesday.

The Swiss bank described the overall position of Australians as “still resilient” and our level of wealth inequality as “relatively low”.

It also predicted that our wealth (defined as financial assets like bank deposits and superannuation, plus non-financial assets like real estate) would grow by 34 per cent over the next five years.

But since the year 2000, the average debt of Australians quadrupled, while their average wealth increased by only two-and-a-half times, the report found.

So Mr Emery’s advice may be timely, especially given that several of the pitfalls he identified relate to debt.

Click on the buttons below to get a quick summary of his advice, and then read on below for more detail.

But first, a word of caution from Professor Susan Thorp, an expert on financial decision making at The University of Sydney.

Financial literacy is a “natural progression” through life, so don’t beat yourself up if you don’t know as much as those who are older than you, Prof Thorp said.

Mistakes to avoid in your 20s

Mr Emery said 20-year-olds should work on building lifelong habits.

Work on your money habits, not just your tan, in your 20s. Photo: Getty

“The money habits we form in our 20s can stay with us for a lifetime, so it’s worth taking control of your cash even at this early stage.”

For example, young adults should practice living within a budget, and set up automatic transfers from their wage into a high-interest savings account, Mr Emery said.

These habits will not only come in handy later in life, but will help grow funds for emergency bills or personal goals like an overseas trip or first home, he said.

Australians in their 20s should also avoid weighing themselves down with debt at this very early stage, he said.

“Applying for a personal loan or credit card can improve your credit record, but only take out what you can comfortably afford to repay.”

Mistakes to avoid in your 30s

Australians in their 30s, who often marry, start a family and buy a house in this decade, struggle to discuss financial matters with their partner, Mr Emery warned.

Be sure to discuss money matters openly, especially big purchases like a house. Photo: Getty

Research by ME bank conducted earlier this year found that 63 per cent of respondents were worried about their finances, and yet 28 per cent were uncomfortable talking about money.

For one in five couples, money was a taboo topic altogether, the study found.

“The more you talk about money, the less tension and conflict it causes. By opening up money conversations, you have a better chance of achieving shared goals in the future,” Mr Emery said.

Adults in this age group should also try to repay their mortgage faster if possible, and save for the education of their children, he said.

Mistakes to avoid in your 40s

Forty-year-olds may want to concentrate on ‘shoring up’. Photo: Getty

Despite the 40s being the peak earning decade for most employees, many Australians fail to use these years to “shore up” their finances, Mr Emery said.

It is important to “resist the urge” to increase spending with each pay rise, he said.

Australians in their 40s should also be careful of drawing down on too much of the equity they have built in their homes, as it is important to be mortgage debt-free near retirement, the ME banker said.

“By this stage you have probably built up valuable equity in your home, which can be used to fund other goals if needed. Go easy on home equity though – depleting this asset at an early stage can narrow your options for the future.”

Mistakes to avoid in your 50s

Be wary of living “too large”. Photo: Getty

Australians shouldn’t let the “tremendous personal freedom” of these “golden years” distract them from the goal of entering retirement debt-free and with plenty of savings, Mr Emery said.

“It makes good financial sense to enter retirement with as little debt as possible, so regularly review your debts, and develop an action plan to clear the slate and remain debt-free,” he said.

“Living too large can mean you’ll come up short later on, and that makes your 50s an important period to work towards retirement goals.”

Mistakes to avoid in your 60s

Be sure to pass on your smart money habits to the next generation. Photo: Getty

While enjoying the fruits of years of hard work, retirees shouldn’t forget to pay close attention to the fees they incur on financial products, Mr Emery said.

“Once you’ve hung up your work boots, it is especially important to get the most from your money — and it’s not just about healthy investment returns.

“Look for everyday banking products like a regular transaction account or credit card that won’t weigh you down with excessive fees and unwanted charges.

“And when you’re spending time with the grandkids, take a moment to pass on the healthy money habits you’ve learned to keep the ball rolling across the next generation.”