Many millennials face unprecedented financial burdens such as student debt. The American Bankers Association shares tips for planning a solid financial future.
“With student debt and high housing costs creating challenges for many millennials, now is a better time than ever for them to map out their finances and invest in their future,” said Corey Carlisle, executive director of the ABA Foundation. “Banks can help with everything from free budgeting tools and mobile resources to in-person check-ups to help you identify and reach your financial goals.”
ABA recommends these seven tips to help millennials secure a strong financial footing:
· Shop around. Be selective and choose a bank that’s best for your lifestyle. There are lots of banking options out there. Each have different advantages – whether it’s the lowest fees, the widest range of services, the most convenient locations or the best loan rates.
· Get a head start. Banks help customers prepare for major life events. Buying a house and planning for retirement to name a few. Ask your banker about getting a head start on your goals.
· Don’t miss out on free money. If your employer matches your retirement contributions, contribute enough to get the full match. And start at day one. It’s free money, and its value compounds over time.
· Save without thinking about it. Make saving a part of your lifestyle. You can use automatic payroll deductions or automatic transfers from checking to savings. Have a specific amount transferred to your savings account every pay period.
· Tap into bank tech to make smarter decisions. You can literally tap into your bank’s mobile app to manage your finances. Be sure to download the latest app updates when they are available.
· Sign up for email or text alerts. Keeps tabs on your money with automatic alerts. For example, when your balance falls below a certain level or to confirm when certain types of transactions occur. (online purchases, transactions of more than $20, etc.)
· Expect the unexpected – set up a rainy day fund. You don't want extra stress when life’s comes knocking on your door. Set up a second checking or savings account. Use it only for emergencies!
For more consumer tips from ABA, visit aba.com/Consumers.
