New Grads: Start Smart With Your Money

Published on May 4th, 2017

For many people, graduating college is the first big step into adulthood. They begin full time employment, they have regular bills, and some have looming student debt. The responsibilities increase tenfold after graduation, which is why it is so important to have a plan in place for your financial security. College may teach a lot of things but how to responsibly handle one’s personal finances is often not one of them. Starting to plan for savings and retirement when you are young is one of the smartest things you can do. Here are three ways new grads and young adults should start banking in Franklin Park to begin a lifetime of financial responsibility.

Open a Savings Account

Committing to the discipline of saving early on in life will serve you well for years to come. Open up a savings account and contribute to it from every paycheck. It doesn’t have to be a lot, but it should be at least the same amount each time. This will get you into the habit of saving while also building a cash cushion. Members of Leyden Credit Union can start their banking in Franklin Park by opening a savings account and enrolling in automatic transfers. By maintaining a minimum balance of just $25, our members can enjoy all credit union services.

Build Your Credit

Some young adults mistakenly fall under the assumption that if they never open any lines of credit then there is no opportunity for financially irresponsible behavior. While you may not be able to go into credit card debt, you will prevent yourself from future financial gains. You need credit to rent an apartment, buy a house, get a loan for a car, obtain good insurance rates, and even become a more attractive candidate for employment. Using a credit card responsibly will teach you financial accountability and will increase your candidacy for loans and big investment purchases. At Leyden Credit Union, our members can open a Leyden Credit Union VISA Platinum Credit Card with no annual fee and with a 25-day grace period for retail purchases. Talk to us today to see how you can start building your credit by banking in Franklin Park with Leyden Credit Union.

Plan for Retirement

Does your employer offer a 401k plan? Great! Open an account and invest at least enough money to take full advantage of your company’s matching contribution. If your employer does not offer a company retirement plan then consider opening a Traditional or Roth IRA and contribute to it annually. Try to contribute about 10-15% of your income to retirement in the first five years after graduation in order to take full advantage of compound interest. By saving a little money early, one will go further than saving a lot of money much later. Start banking in Franklin Park now to save for your future.

Leyden Credit Union is a member-owned financial institution that provides top quality care and services to people banking in Franklin Park. You can find everything you need for your financial plan. From savings and checking accounts to auto loans and credit cards, Leyden Credit Union offers a comprehensive suite of services to its members. Join us today and get on a path toward your long-term financial security.

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