7 Banking Tips for Millennial’s
Living paycheck to paycheck? According to a recent survey by Charles Schwab, 62% of Millennials fit into this category.
In the same survey, this generation also stated they spend an average of $478 a month on “nonessentials” including eating out, entertainment and vacations. Overspending and under-saving appear to be the trend here. The sooner smart banking habits are established, the better off you will be. Here are a few banking tips to get your finances on the right track.
Set Up a Checking Account
Before you do anything else, make sure that you have a checking account. A checking account establishes your financial profile and it’s the best way to track your day-to-day spending. Using a debit card instead of a credit card ensures you are living within your means and not getting into unnecessary debt. Plus, you can track your purchases online or on the mobile app!
Emergency Saving Fund
It’s important to have 3-6 months of living expenses set aside in case of an emergency. Job loss, illness, medical emergency… there are so many unknowns in life and having a cushion to live on in the event you cannot work will ensure you do not lose your home, car, and other necessities.
Establish Credit
Credit is a part of life and having a good credit score will help you obtain better interest rates and lower fees on loans, among other things. Use credit cards responsibly (pay in full every month), pay your bills on time, and stick to debit cards for everyday purchases to avoid racking up bills you can’t afford.
Pay Off Debt
If you have debt, focus on paying it down as quickly as possible. Student loan debt tends to be a huge contributor to overall debt for Millennials with the average being around $19,000. The total average debt for those 20-35 years old is $36,000, according to a recent survey by LightStream.
Save for Retirement
No matter how old you are, start saving for retirement now. Many employers offer to match your retirement savings in a 401K that can be taken out of your paycheck pre-tax, so your overall taxable income is reduced. The earlier you start, the better your nest egg will be when you are ready for it.
Use Bank Technology
It’s 2019 and technology has reached all industries, including banking. Automatic transfers, apps to track spending, budget creation, and email/text alerts are all free and readily available to help you keep your finances on track. Set up an automatic transfer from your checking to savings account to occur every month. You’ll be surprised how fast it adds up! Apps such as Mint are great to help you stick to a budget and track your spending. Eastex’s mobile app is free, and you can pay bills, transfer money, check statements and account balances, contact us directly, and much more!
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We hope these banking tips will help remove some of the unnecessary stress that comes with managing your finances. Eastex Credit Union is committed to educating our members on the importance of banking smart. We and are here to help any way we can.
