GETTING STARTED: YOUNG ADULTS

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 can be worth ten times as much as 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:

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1. Build a Checking Account Relationship

BCT’s personal checking accounts are designed for your lifestyle. Whether your needs are for simplified banking or for banking with enhanced options, BCT values the opportunity to build a banking relationship with you.

 

  • ACTIVE - is a non-interest bearing account that is eligible for BCT Rewards.
  • ACTIVE PLUS - is an interest bearing account based on balances at a tiered rate.

 

2. Build a Savings Account Relationship

Identify your short, medium and long-term goals and budget your money accordingly by building assets through savings. 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 time periods, but it’s not for the faint of heart. You may also want to join a 401(k) plan if available from your employer or open up an IRA account.

BCT can help compound your savings with an account that’s right for you:

 

3. Conserve time, money and paper with BCT’s convenient electronic services

You’ll reduce the time it takes to pay your bills and save on the expense of printed paper checks and postage while helping the environment as well.

 

4. Borrow wisely

Avoid high-interest credit cards and pay off your credit card debt monthly. Work with BCT for your major lending needs including personal and vehicle loans, home mortgages and home equity lines of credit.

5. 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 Young Adults...

Our calculators can help you determine what you need to achieve your goals and stay on budget. Visit our Calculator Page with over 50 additional Financial Calculators.

FOR MORE INFORMATION

Request information online or contact one of our convenient locations:

Charles Town 304-725-8431
Harpers Ferry 304-535-6336
Kearneysville 304-876-2563
Martinsburg 304-262-0089
Hedgesville 304-754-0000
Hagerstown 301-739-4228