Financial Advice for Young Adults
Growing up isn’t easy, and the older you get the decisions get bigger. What kind of car should I buy? Where am I going to college? Am I ready to buy my first home? And... how am I going to pay for it? You are now at a crossroads and you will need to choose your own path, and your own destiny. At this stage, you will need to let go of the sheltered life you have led at home and embrace having to take on the full responsibility of being your own person and make wise and informed financial decisions. There are a few guidelines that you will need to keep in mind on your journey.
Control your level of spending and avoid getting caught in the web of charging everything. These items add up and it may take years to repay. A credit card is not a bad thing to have. It’s what you do with it that makes it a positive or negative in your life.
It’s important to save for specific goals and have a savings plan for future expenses – education costs, a car and eventually the purchase of a home or the start of a small business. It is also important to build up an emergency fund that would cover at least six months of living expenses to help get you through any difficult times, such as job loss, major car repairs or unexpected medical expenses. This may be set up in a long term account that you cannot have access to for any other reason than what it is intended for, EMERGENCIES.
It’s also a good idea to setup your savings on autopilot by having your employer direct-deposit part of your paycheck into a savings account.
Start saving for retirement now; it’s never too early to start. Prepare yourself for whatever may come in the future. Look into all your retirement savings options at work, which may come with matching contributions from your employer. Chances are your retirement savings will barely reduce your take-home pay because of what you’ll save in income taxes, and the sooner you start your career, the more you can take advantage of compound growth. Small sacrifices now will be your future gain.
Think about ways to cut your expenses and add more to savings. For your financial services, research lower-cost checking accounts at your credit union. And, if you are paying interest on credit cards or fees for spending more money than you have available in your checking account, why? Develop a plan to eliminate paying your hard earned cash to others.
allU.S, makes it easy for young adults to save, spend, borrow and manage their money.
- Base Share Account: Perfect for saving money for a tablet, college or planning for unexpected expenses.
- Free Checking: Perfect for everyday expenses such as buying lunch, shopping and paying bills.
- VISA Credit Card: Great for building a positive credit history with responsible spending and timely payments.
- New & Used Care Loans get preapproved so that you can buy your first car or your dream car at a rate and term that you can afford, not a payment that the dealer will tell you is affordable while having you pay 50% more for your car.
- Online Banking allows you to access your account online 24/7 and never have to worry if you have enough money in your account. Check balances, pay bills, or transfer money, day or night.
- eStatements: Save a tree and keep yourself informed about your balances and financial activity.
- 30,000 Free ATMs : Get free ATM access at more than 30,000 Co-Op Network ATMs around the U.S. where you go to college or travel during summer vacations.
Manage your wealth, guard your health and keep your future in mind for every decision you make, be it financial or otherwise. allU.S. Credit Union cares about young adults! We want to help you save more, learn about money and have some fun!