Educating young adults about personal finance is a lifelong process. By helping them understand the importance of saving now (in their early years), you can help them establish their short and long-term financial goals – possibly better than you did when you were their age.
Of course, having a debit card is imperative to teaching young adults financial responsibility and money management, but a savings account instills strong discipline and budgeting skills.
Whether setting money aside for a big purchase like buying a car or getting an apartment, or simply tucking away a few dollars for an emergency, understanding the importance of saving is a lesson to learn early that will grow in value as your young adult gets older. Help them set up an interest-earning savings account and encourage them to automatically save a portion of each paycheck.
Maximize Savings with a 401(k)
Most 20- and 30-year-olds aren’t too concerned with saving for retirement, but you can teach them how saving now will pay off in the long-run. If they’re entering or already immersed in the work world, make sure your young adult knows how to maximize their employee benefits. If the employer matches employee contributions to a 401(k) or a similar retirement program, make sure they take advantage of it!
Better Banking Options
Teaching young adults how to save better than you did when you were their age doesn’t have to mean only putting money away in a savings account or 401(k). In fact, a deeper understanding of savings can be as simple as introducing them to better banking options that are available.
The Difference Between a Credit Union and The Other Guys
A credit union is a not-for-profit financial cooperative in which profits earned above expenses are returned back to their member-owners in the form of lower fees, lower loan rates, and higher earnings on savings accounts. Banks are for profit, meaning they’re in the business of maximizing revenue for stockholders, often offering little to no savings to their customers.
At Peach State, we advocate financial education, smart saving habits, and sound credit use to enrich the lives and financial well-being of our members. Our roots originated in the education system, so we firmly believe in the importance of teaching and learning. That’s why we’ve put together a library of resources and other helpful tools from our financial literacy partner, BALANCE to help your young adult learn and prosper during their financial journey.
We're Here for Their Firsts
Now that your young adult has a head start on understanding the value of saving, they’re right on track to build and grow their financial future. Whether it’s their first debit card, auto loan, credit card or even a home, we’ll be here to help them get started on the path to financial independence. Together, we can help them become better critical thinkers about future financial decisions for achieving their most important goals.