Author: Destany Long, Communications Specialist at Elements Financial
I got my first part-time job at 16, and my $200 paychecks didn’t last long. Between clothes, fast food, and countless Amazon packages, I was still learning what “adulting” really meant. My parents taught me to live within my means and always save money. But now, at 25, I have a real goal to pay off my high-interest debt, and I can’t seem to build a solid savings plan.
I decided to sit down with one of our Relationship Managers, Emily Florek, to get a better understanding of my finances. We talked about my journey, my current goals, and easy habits I can implement to help me get where I want to be. Here’s what I learned:
1. Save with a Purpose
The biggest reason I struggled with saving was that I didn’t have anything to save for. I saved money because everyone told me to, but I’ve now learned the importance of saving with intention.
If you don’t know what to save for, Emily suggests starting with a $1,000 emergency fund. This will prevent you from taking on high-interest debt when life happens. It’ll also teach you independence and responsibility, as you won’t have to rely on your parents to save you.
2. Give Every Dollar a Job
When it came to my budget, I knew the simple 50/30/20 formula. (50% of my money towards my needs, 30% towards my wants, and 20% towards savings). While this formula is an effective way to budget, I found it hard to distinguish my wants from my needs, which left my money disorganized and led to overspending.
When I explained this to Emily, she shared this budgeting framework that allocates your income across several core life categories:
To make saving seamless, Emily recommends having clear savings goals and setting up automatic transfers, so you don’t have to think about it. When saving becomes automatic, you don’t have to rely on motivation alone.
Did you know? Elements Digital Banking just got an upgrade! Our savings goals feature allows you to set goals, name them, and track your progress along the way. Learn more.
3. Shop Value Over Price
We all know how easy it is to take the cheap route, but how many times has the cheap option also been the most fragile? Just because you’re working with a budget doesn’t mean you can’t invest in things that hold long-term value.
Take it from someone who’s blown several used tires – don’t cheap out on things you use daily or on items tied to your health. You may spend more now, but you’ll be paying for a more durable product that gives you greater protection and peace of mind. So, before you make your next big purchase, here are a few questions to ask yourself:
- Do I want it or do I need it?
- How often will I use it?
- What’s the cost per use?
4. Think Beyond Your Next Paycheck
When you’re young, you feel like you have your whole life ahead of you – and you do! But it’s never too early to start defining your long-term goals. What do you want the next five to ten years to look like? When do you want to buy a home? What major purchases are you planning for?
"Think about things that are a necessity to you and set goals around that."
In my early twenties, I’m focusing on building a solid emergency savings and paying off my high-interest debt. Your goals may look different, and that’s okay! Emily encourages young adults to set clear goals now to make financial decision-making easier down the line.
5. Financial Institutions Are Your Friends
Banks and credit unions, like Elements, offer tools designed for different stages of life. Whether you’re building your first emergency fund, saving for a down payment, or planning a major purchase, a financial professional can help you choose the right account and strategy.
Here are some Elements products that Emily recommends for all stages of saving:
Member Savings – perfect for those just starting to save and want to establish a relationship with a credit union
Helium Savings – works well for those who have a few thousand dollars saved
Share Certificates – for savers who want a high rate of return and don’t need to access their money quickly
What You Can Do with Elements
If you’re a young adult starting your financial journey, know that Elements is here for you! Our new digital banking platform makes managing your money easier than ever. With the right resources and guidance, you’ll gain the confidence to make informed financial decisions for your future.
Connect with one of our Relationship Managers to see how Elements can help you achieve financial success.
