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Savings Plans For Young Adults

It is never too early for young adults to start a savings plan. Whether your goal is to quickly pay off student loans or to plan ahead for retirement, putting money aside is a great way to get ahead in life.

Keep reading to learn a few strategies for your savings plan.

Four Savings Plan Tips For Young Adults

expert creating a savings plan for young adults

For many young adults, developing a savings plan may seem like an impossible goal. However, it is important that individuals in their 20’s and 30’s prepare for the future. Every dollar saved helps create a better financial outlook for our next generation.

Here are four ways to save:

1. Open a Savings Account

It may come as a surprise, but more than 20 percent of Americans have no savings account. The first step for a young adult to create a savings plan is to open a savings account. There are several different types of deposit products available to fit your needs.  Be sure to explore many options to determine what savings product works best for your goals.

2. Make a Budget

In order for young adults to stick to a savings plan, it is important to track where their money goes. Making a budget involves more than simply listing your expenses; budgeting requires self-control and the ability to make sacrifices through curtailed spending.

A budget should have three goals:

Once you set up a budget, you’ll have a better understanding if you are able to spend on non-essential or luxury items.

plan for your future today

3. Decide How Much You Should Save

Some experts suggest that young adults should save up to a third of their income. While this goal isn’t always possible, saving money when you have less financial responsibility is a solid strategy. Savers should pick an amount and stick to it every month, regardless of how much they decide to save.

4. Pay Down Your Student Debt

Student loans can be a heavy burden for young people, but paying off student debt as quickly as possible will help young adults to ramp up their savings plans. With student loan interest rates frequently rising, student debt costs more than your savings could earn in interest.

It may take several years, but focusing on eliminating student debt will allow you to save more money later in life.

Start Saving With Synchrony Bank Today

It is never too early to start saving for tomorrow. Synchrony Bank offers high yield savings accounts, CDs and many other deposit products, and its award-winning deposit products can help young adults develop savings plans for their futures. Call 1-844-345-5789 to get started on your savings plan or find us online today.

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Sources:

Market Watch: marketwatch.com/story/most-americans-have-less-than-1000-in-savings-2015-10-06

The Balance: thebalance.com/wants-vs-needs-1388544


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