Getting Started
Financial advice for young adults entering the work force
Laying the right foundation as you start your career is the key to future financial success, and at this lifestage, TIME is your greatest asset. Consider that each dollar you save in your 20s could be worth ten times as much as each one saved in your 40s. Through the magical power of compounding, the beginning of your working life is the prime time to start saving towards retirement—even though many people don’t want to think about, or worse yet, act on this principle.
During this time, young adults have the exciting task of learning how to manage the spending and saving of their money within the constraints of their income. Here are some steps to take now to put your financial future on track.
For help determining the best accounts and products for sound and productive money management during your Getting Started Lifestage, please contact us.
1. Identify your short, medium and long-term goals and budget your money accordingly
Your short-term goals of less than five years might encompass a wedding, honeymoon, furniture or a new car. Medium term goals could include the purchase of a home and financing your future children’s college education, followed by long-term retirement goals. These goals will help you determine how to spend and save your money.
2. Build assets through saving at least 10 percent of your income
It may be wise to invest in CDs or money market funds for your short-term goals and the stock market for your longer term goals. Historically, the stock market has outperformed other types of investments over comparable periods, but it’s not for the faint of heart. You may also want to join a 401K plan if available from your employer or open up an IRA account.
3. Establish an emergency fund
A good guide is to save three to six months’ worth of living expenses to cover rent or house payments, utilities, car payments, food, transportation and insurance into a separate bank account that could be easily accessed in the case of job loss or uncovered medical expenses. Don’t use the money for anything else.
ACB Bank recommends these accounts for the establishment of your emergency fund:
4. Conserve time, money and paper with ACB Bank’s convenient checking accounts with online banking and bill pay
You’ll reduce the time it takes to pay your bills and save on the expense of paper checks and postage while helping the environment.
5. Borrow Wisely
Avoid high-interest credit cards and pay off your credit card debt monthly.
Work with ACB Bank for your major lending needs including personal loans, vehicle loans,
and home mortgages.
6. Understand Your Credit Report
Your financial behavior over the past seven years, including how much credit you have, how long you've had it and whether you pay your bills on time is information included in your credit report. Three credit reporting agencies — Equifax, TransUnion and Experian — maintain these reports, and lenders buy them to help them decide whether to offer you a prequalification. Your credit report also carries your credit score ranked between 300 and 850 that many lenders use to decide whether you are creditworthy and will repay a loan. Your credit score can also influence the interest rate you pay. In many cases, the higher your score, the lower your interest rate. Your credit score is available from the three credit reporting agencies:
Tips for Effective Financial Management:
- Pay off your credit card debt. It is senseless to pay 13 – 20 percent interest on credit card payments while your savings accounts earn one or two percent.
- If you cannot pay off your credit card debt, pay more than the minimum payment each month which in some cases will only cover the interest charges.
- Don’t worry too much about paying off student loans early. These normally have a much lower interest rate than credit cards. By making low payments on student loans, you’ll have more money to reduce high-interest credit card debt.
Some Financial Calculators for Getting Started
Our calculators can help you determine what you need to achieve your goals and stay on budget.
Student - Teen - College
Learn to manage money and prepare for the cost of higher education
You may still rely on financial help from your parents or other family members, but it’s not too early to start cultivating sound money-management habits. Many financially sound adults accomplished their goals through careful financial planning that began when they were students.
How can you start on the path to sound money management?
For help determining the best accounts and products for sound and productive money management during your Student Lifestage, please contact us.
1. Become a “Star Saver”
Learning to save money in your teens and college years is an excellent habit that will train you be a good money manager for the rest of your life. Set goals for your money and start saving NOW. If you have no immediate goals, your goal can be to have a “money cushion” for when that important need for cash occurs.
ACB Bank offers saving accounts specifically designed for students:
Savings Account – Earns prevailing interest rates, compounds daily and pays quarterly.
When you are 18, you may open a savings account on your own. Younger students may open checking accounts with the co-signature of a parent, and you need to do this together inside the bank.
2. Start a Checking Account
3. Plan in Advance for College
Tips for Effective Financial Management:
Set a savings goal and keep track of your progress.
If you have a job, don’t spend everything you make.
Record ALL your transactions daily for your checking and savings accounts, whether they are made with debit or credit cards or paper checks and deposit slips.
Know your account details such as overdraft charges, interest rates,
withdrawal restrictions, minimum balances, etc.
Some Financial Calculators for Students
Our calculators can help you determine what you need to achieve your goals and stay on budget.
Families on the Go
Managing the financial responsibilities of family life
By the time you have a family of your own, there will be accompanying expenses such as fees for various activities and lessons for your children, family vacations, saving for college educations or buying a new home. Throughout this time, you should regularly evaluate your progress towards achieving the financial goals you set earlier in your life and adjust your spending, budgeting and savings to make sure you stay on track. With all the demands a family places on your income, it is still important to build your long-term investments.
Planning and discipline that determines what and how you spend contributes to your future financial success. Here are some tips ACB Bank recommends for sound financial management during this demanding time of your life.
For help determining the best accounts and products for sound and productive money management during your Families on the Go Lifestage, please contact us.
1. Shop for the best mortgage and consumer loans
Shopping, comparing and negotiating may save you thousands of dollars when seeking the best mortgage or consumer loan. A mortgage—whether for a home purchase, refinancing or a home equity loan—is a product, just like a car, so terms may be negotiable. You’ll want to compare all the costs involved in obtaining a mortgage including interest rates, points, fees and down payment and private mortgage insurance requirements. Home equity loans can be helpful when reducing significant credit card debt—but be cautious about re-building credit card debt once after paying these loans.
With competitive rates, experienced lending professionals and local decision-making, you’ll be sure to find a loan at ACB Bank that meets your needs. To apply for a mortgage or consumer loan now, call or stop by and talk with one of our lending officers.
2. Understand your credit report
Your financial behavior over the past seven years; including how much credit you have, how long you've had it and whether you pay your bills on time, is information included in your credit report. Three credit reporting agencies — Equifax, TransUnion and Experian — maintain these reports, and lenders buy them to help them decide whether to offer you a prequalification. Your credit report also carries your credit score ranked between 300 and 850 that many lenders use to decide whether you are creditworthy and able to repay a loan. Your credit score can also influence the interest rate you pay. In many cases the higher your score, the lower your interest rate. Your credit score is available from the three credit reporting agencies:
3. Start Saving for College
By starting early, when your child is in preschool or before, you can build a realistic fund through the power of compounding over many years. The earlier you start, the less you’ll have to save per month.
Through ACB Bank, you can access products designed to help you fund your child’s higher education.
To learn more, or set up an educational account, click on the links below.
4.Conserve time, money and paper with ACB Bank’s convenient checking accounts with online banking and bill pay
You’ll reduce the time it takes to pay your bills and save on the expense of paper checks and postage while helping the environment.
5. Save for Retirement
Tips for Effective Financial Management:
- Make sure your mortgage payment, including taxes and insurance, represents no more than 25 percent of your gross monthly income.
- Review the cost of your health care insurance and make sure you are getting adequate coverage at the best price.
- Make wise purchasing decisions by determining what you “need” compared to what you “want.” This will help you make ongoing decisions to keep your finances in check.
- Guard against impulse shopping, especially costly purchases such as vehicles, major appliances, furniture, jewelry and et cetera.
Some Financial Calculators for Families on the Go
Our calculators can help you determine what you need to achieve your goals and stay on budget.
Financial guidance for maturing adults without children
Maximizing your paycheck in your 30s and 40s is a priority during this time when your income tends to rise. You may have discretionary income for travel and hobbies, and the challenge is to find the right balance between spending and saving. The financial decisions you make now will have the greatest impact on the lifestyle you will enjoy during retirement. It’s important to note that people are retiring earlier and living longer, and you may need more money in the future than you think.
ACB can help you stay on track with your long term financial goals.
For help determining the best accounts and products for sound and productive money management during your Career-Focused Lifestage, please contact us.
1. Shop for the best mortgage and consumer loans
Shopping, comparing and negotiating may save you thousands of dollars when seeking the best mortgage or consumer loan. A mortgage—whether for a home purchase, refinancing or a home equity loan—is a product, just like a car, so terms may be negotiable. You’ll want to compare all the costs involved in obtaining a mortgage including interest rates, points, fees and down payment and private mortgage insurance requirements. Home equity loans can be helpful when reducing significant credit card debt—but be cautious about re-building credit card debt once after paying these loans.
With competitive rates, experienced lending professionals and local decision-making, you’ll be sure to find a loan at ACB Bank that meets your needs. To apply for a mortgage or consumer loan now, call or stop by and talk with one of our lending officers.
2. Understand your credit report
Your financial behavior over the past seven years, including how much credit you have, how long you've had it and whether you pay your bills on time is information included in your credit report. Three credit reporting agencies — Equifax, TransUnion and Experian — maintain these reports, and lenders buy them to help them decide whether to offer you a prequalification. Your credit report also carries your credit score ranked between 300 and 850 that many lenders use to decide whether you are creditworthy and will repay a loan. Your credit score can also influence the interest rate you pay. In many cases the higher your score, the lower your interest rate. Your credit score is available from the three credit reporting agencies:
3. Conserve time, money and paper with ACB Bank’s convenient checking accounts with online banking and bill pay
You’ll reduce the time it takes to pay your bills and save on the expense of paper checks and postage while helping the environment.
4. Save for Retirement
Many people underestimate the amount of money they’ll need in retirement. Be realistic about major expenditures, e.g., is your mortgage going to be paid off by retirement? If so, you may need less income than you do now. Do you plan to buy a vacation home or travel extensively? Will you have to pay for your own health insurance? These and other financial considerations come into play. Now is a good time to up your contributions to your retirement savings accounts.
Talk with a ACB Bank’s Customer Service Representative to learn about the products we offer that can help you meet your retirement goals.
Tips for Effective Financial Management:
- Understand what your credit report score means and take a pro-active
role in monitoring it. - Resist the urge to cut back on savings to meet rising expenses or accommodate other goals.
- Make sure your mortgage payment, including taxes and insurance, represents no more than XX percent of your gross monthly income.
- Spend less than you earn—it’s the simplest way to stay free from
all-consuming debt.
Some Financial Calculators for Career-Focused Adults
Our calculators can help you determine what you need to achieve your goals and stay on budget.
Pre-Retiree
Transform your financial habits to prepare for the future
Your 50s are a good time to take stock of the asset allocation of your portfolio and evaluate your position relative to your retirement plans. For an accurate estimate, consider at what age you would like to retire and the lifestyle you plan to have… will you travel, have a vacation home, take up an expensive hobby? Project a budget, keeping in mind that some costs, such as health insurance, may increase and others, like your mortgage payment, may disappear. After estimating your living expenses, then estimate how much your assets will be worth at retirement and their longevity. You can do this with ACB Bank’s retirement calculator. Also include an estimate your Social Security income and with this information at hand, you may want to increase your retirement contributions.
As you enter your 60s, fine-tune your projections and your asset allocations. If you retire before
age 65, be sure you have medical insurance to cover you until you are eligible for Medicare.
age 65, be sure you have medical insurance to cover you until you are eligible for Medicare.
ACB Bank can help you in your pre-retirement lifestage to re-allocate your assets or increase
IRA contributions. Please contact us for more information.
1. Take advantage of our interest-bearing checking account.
Take advantage of our interest-bearing checking account.
2. Conserve time, money and paper with ACB Bank’s convenient checking accounts with online banking
You’ve earned it. ACB Bank gives you two checking accounts built for the way you live.
Also, you’ll reduce the time it takes to pay your bills and save on the expense of paper checks and postage while helping the environment.
3. Catch up on your IRA or other retirement plan
After age 50, you are qualified to boost your plans with “catch-up” contributions. Contact us for more details.
Tips for Effective Financial Management:
- Become aware of opportunities to reduce your lifestyle costs, e.g., downsizing vehicles or your home may provide convenience while lowering the costs and time of maintenance.
- Determine your financial priorities, make a list with deadlines and start accomplishing them.
- Start the decision-making process about where you want to live during retirement and figure all the associated costs.
- Spend time doing what you plan to do at retirement to help yourself determine if you’re ready.
Some Financial Calculators for Pre-Retirees
Our calculators can help you determine what you need to achieve your goals and stay on budget.
Retiree
Protect Your Wealth and Start Paying Yourself
The freedom to live the retirement lifestyle of your choice with more time to spend with your friends and family can make your retirement years truly enjoyable. However, this is not the time to become complacent about your financial initiatives. Stay open to new ideas and opportunities to leverage your money, even if you are satisfied with your products and their performance.
Here are some ways ACB Bank can help you fortify your financial position during your retirement years:
For help determining the best accounts and products for sound and productive money management during your Retirement Lifestage, please contact us.
1. Conserve time and money with ACB Bank’s convenient checking accounts with online banking and bill pay
You’ve earned it. ACB Bank gives you two checking accounts built for the way you live. Both have online banking and Bill Pay.
With Bill Pay you’ll reduce the time it takes to pay your bills and save on the expense of paper checks and postage while helping the environment.
We also offer a Money Market account.
2. Rent a Safe Deposit Box
This a convenient place to store important items that would be difficult or impossible to replace. ACB Bank’s safe deposit boxes offer privacy and in most cases, greater security than keeping your valuables and important documents elsewhere.
Tips for Effective Financial Management:
- Take advantage of senior discounts wherever you can, and don’t be shy in asking for them.
- Do not invest with someone you don't know. Fraud targeted at retirees abound. Research your investment opportunities carefully and verify them via the services reputable professionals.
- Be informed. From your investments to your insurance, you’ll want to audit your current portfolio and policies and make the necessary changes to reflect your needs and preferences as a retiree.
- Create a complete and detailed listing of your financial, investment, insurance and trust products and put a copy in your safe deposit box.
Some Financial Calculators for Retirees
Our calculators can help you determine what you need to achieve your goals and stay on budget.
Convenient day-to-day business checking.
This basic checking account is a great way to manage cash flow in and out of your business. Bank conveniently while keeping costs down.