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 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, don’t 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:

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.

Build Assets by saving at least 10% 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 time 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.

TCSB Bank can help you compound your savings with an account that’s right for your goals.

Christmas Club- Help plan ahead for the holidays by opening an account that lets you deposit all year long yet prohibits withdrawals until a designated date set by the bank each year. As a bonus, you earn interest on your contributions and have extra money already set aside to use for gifts, donations, etc!

Certificates of Deposit – CDs start as low as $1,000.00 and terms range from 3 months to18 months. Call a customer service representative for current rates and specials. Contact us

Money Market – Interest bearing LIMITED checking account with minimum to open $2,500. Limited to six withdrawals per month in the form of checks and/or cash withdrawals. For complete rules, please call a customer service representative.

Traditional IRA – Tax deductible contributions to a traditional IRA can help you build long term wealth and help you reach your retirement goals. Call an IRA specialist, today for more information.* Contact us

Roth IRA – Contributions to this type of retirement account are not tax deductible, however, when you retire, distributions are tax free. For more details call an IRA specialist.* Contact us

* Consult a tax advisor