Whether you’re fresh out of college or fresh into retirement, budgeting is one of life’s constants. But your financial needs and priorities won’t always be the same. By adapting with your age, career and family situation, you can set yourself up for success at any time of life.
It’s never too early to learn more about finances. If you’re a
teen (or the parent of a teen), look for ways to build healthy
spending habits. If you have a job or an allowance, practice setting
aside a portion of your income towards a big expense like college, a
car or a passion project.
When you’re just starting your career, much of your income will go
to daily expenses: insurance, rent, utilities, student loans and so
on. With a tight budget, it may seem unrealistic to save money –
but starting an emergency
fund now can protect you from debt in the long run.
- Late 20s – 30s:
Around your thirties, your income is growing. But your expenses may
grow too, especially if you’re raising a family, making mortgage
payments or managing a larger household. It’s time to get serious
with your finances: Consult a qualified advisor about college saving
accounts, retirement savings, estate plans and other financial
As your taxes rise, it’s worth it to consult a certified public
accountant (CPA) to maximize your deductions. As a general rule,
choose investments that will allow you to reduce tax liability. You
may want to take steady investments in pre-tax accounts like Health
Savings Accounts and focus risk in after-tax accounts, like Roth
At this age, many Americans are balancing the financial needs of
dependent parents and college-aged children. Understand your
priorities. Consider costs like at-home health care, tuition and
saving for your own retirement. Talk to your siblings and parents to
develop a plan that accounts for all your expenses.
- 60+ If you’re not yet retired, this is time to review your plan. Talk to an advisor and project all your sources of income, including pension, retirement accounts, investments and Social Security. If you’re already retired, stay on top of your budget. Even if you’re in good health, make sure you have a plan in place for medical assistance or long-term care.
No matter where you are in life or what your financial goals are, Axiom Bank is ready to help you achieve them. Combining personal expertise; a low-stress, low-fee digital account; and the assurance of a nationally chartered community bank, we put control of your money back in your hands – where it belongs.