Banking Tips for Millennials
By Andrea Eldert
Adulthood is inevitable for every generation…and, Millennials, you are no exception. While the youngest of you are still in middle school, high school, or college, more and more are entering the busy years of building a career and a family. Many are just getting started; others are a little more experienced. So what should you keep in mind about banking? Here are some banking tips for Millennials (though really they are good advice for anyone).
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Think in the Long Term
One of the hard things about being young is that it is difficult to imagine how much life will change over a decade (or over 5 decades). On the other hand, one of the best things about being young is the ability to affect the long-term future. In these early years of adult life, you can make choices that will make life in the future easier. Saving for the future is one important choice you can make. You should consider saving for retirement as well as saving for more immediate needs, such as an emergency fund and the purchase of a home. Thinking in the long-term will enable you to build a more comfortable and secure future.
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Make the Most of Technology
It’s no secret that the Millennials have a special relationship with technology. Having grown up with technology that your grandparents (or even parents) only dreamed about, you are more comfortable with technology. You use digital tools to do many routine tasks, and you have a close relationship with your smart phones. This love for technology is great for simplifying personal banking activities. At Federated Bank, we have several ways that you can utilize technology to make banking more convenient. Mobile banking helps you stay tuned into your finances. Mobile or Online Bill Pay allows you to schedule payment for bills, minimizing the time and effort eaten up by bill-paying. Popmoney even provides the opportunity to pay almost anyone without writing a check.
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Be Smart About Building a Credit History
Navigating the world of credit can be a bit tricky, especially for Millennials who are just starting out. If you have never used credit, you don’t any credit history. Without a credit history, it is hard to secure credit. It is important to establish a credit history when you are able. You can do this through the use of a credit card, through an auto or other secured loan, or just simply through the repayment of student loans. Demonstrating your ability to make scheduled payments on your debts in full and on time will help you establish a positive credit history and a good credit score. On the other hand, racking up debts that you cannot repay on time harms your ability to secure credit in the future. Experian shares some valuable tips on establishing a credit history in this blog. You can also find information on improving your credit score on a previous Federated Bank blog.
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Keep Working to Repay Debts
Closely related to the point above, Millennials can also benefit from paying close attention to the repayment of their debts. The unfortunate truth is that many of you are leaving college burdened with significant college debt. This may be compounded by additional debt for autos, homes, and other necessary (or luxury) expenses. Failing to deal with all this debt in your early working years can make life difficult later on. First of all, missing payments for debts can cause your credit score to fall, which makes future borrowing more expensive. Equally important, debts that are not tackled can easily grow out of control. Making a concerted effort to pay down debt now will make life easier for Millennials later.
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Take Advice About What You Don’t Know
Finally, Millennials, keep in mind that you don’t have to always figure things out by yourself. The world has certainly changed in many ways over the last few decades. However, some things stay the same. If you find yourself facing some decisions or circumstances that are puzzling, ask for help. Find out how your parents (or even grandparents) handled similar situations. Getting advice and guidance from those with more experience may keep you from some difficult trials. The friendly staff at Federated Bank are always available to answer questions you may have for us.
It is an exciting time for you, Millennials. You will inevitably put your mark on the world in your own way. As you do, Federated Bank will continue to meet your banking needs. We will continue to utilize technology to offer smart solutions for banking. Our flexible options for mortgages, auto loans, and small business loans will provide financing for your growing needs. Come in and talk with us about what we can do for you.
