Building a financial future is important for everyone at any age. As a parent, it is essential to prepare your children with financial literacy as they age, especially as they become young adults making more financial decisions on their own. Keep reading as we guide you through essential steps in preparing your young adult for a solid financial future. 

Building a Savings

  • The time between high school and a full-time job can be a very difficult or even scary time for many young adults. Often the last thing you’re thinking about is saving for an unknown future, but this is the best time to start saving. As your life progresses you will have more bills and expenses that will take away from the ability to save. That is why the best way to build a savings account is to consistently take money from your income in order to start the habit early.

Building Good Credit

  • The ideal credit score is between 660 to 850. A credit card can be a great way to build credit if you do not have any bills to pay and are just starting out as an adult. It is important to consider which card you chose because applying for each one will impact your credit score negatively. 
  • This is not to say that you should not apply for a card, just that it is important to choose the right card(s) for your situation. A mistake often made by first-time credit users is purchasing things out of their budget, forgetting that this card needs to be paid eventually. 

Retirement Savings 

  • We get it, when starting out your independent adult life, the last thing on your mind is retirement. It feels far off in the future and something that you can worry about later once you get more established. This is not the case however because the sooner you start your IRA the better. 

American State Bank offers four different types of individual retirement accounts including: 

  • Traditional IRAs
  • Roth IRAs
  • Simple IRAs
  • SEP IRAs

Emergency Funds

  • An emergency fund is something that slips many individuals’ minds up until the moment they need it. No one plans to be laid off or have a major accident, but it could happen to anyone. Protect yourself and your future by putting money away now to pre-plan for later. 
  • There is no minimum or maximum required for emergency funds, but it is recommended to have six months' worth of living expenses. This allows you time to recover from whatever emergency you’re in and get back on your feet. 

 We offer three different types of savings accounts that would work for your emergency fund including:  

  • Personal Savings Account
  • Investor Choice Money Market Account
  • Preferred Direct Savings Account

Our team at American State Bank is here to answer any questions you may have or product recommendations to assist in preparing your young adult for their financial future ahead. There is no better time than NOW to focus on your savings strategy – contact us today!