Your first homebuying experience is one of the biggest financial decisions you can make. It’s a significant process that calls for plenty of background research and knowledge, so it’s only natural that the process can seem intimidating and stressful rather than exciting. Unfortunately, nobody teaches this in school.
When you consider all of life’s changes between ages 20 and 60, your financial goals might be the most dramatic. Everything from personal health to family life to housing requirements can change dramatically, and those same factors alter your biggest financial decisions. Instead of simply asking “which bank is best for me?” you might ask “which account options are best for me?”
What Millennials and Generation Zers Should Know About Banking
People weighing their first banking options should know younger people typically have high activity in their checking accounts. This covers everyday purchases and deposits. Additionally, they’re usually less established in their careers and family goals and are likely to move into larger homes in the next few years. When things change and they discover more banking insights and opportunities geared toward their goals, they will need to reevaluate their financial objectives.
Right now, you might want to know how much money to keep in your checking account. There’s no concrete answer to that question, especially considering that the average bank account varies by age and changes over the years. That’s where American Bank of Missouri can help. Although people typically use the same checking account for 16 years, their needs generally shift over the account’s life span. Our experts are prepared to discuss your long-term options.
Because we serve many types of clients, we want to determine whether the accounts you’re using match your situation. Case in point: You may set aside thousands of dollars in a checking account to save money, but you may not be aware that there are more lucrative options that will suit your needs. We will talk to you along the way to make sure your money works as hard as possible.
Defining Long-Term Goals
It’s easy to avoid planning for the future when you’re young. At age 20, 35 seems like a lifetime away. However, those fledgling years are ideal for outlining long-term banking goals and learning money basics. If you start a portfolio with a variety of accounts and products with us early on, we will have a foundation to assist you in achieving your goals. This can make offerings such as mortgages much simpler once you start considering your options.
This might be common knowledge for some young people, but many abandon ship before they truly get started. For example, although Millennials head mobile banking adoption, more than 40% have deserted their mobile banking activities at some point — compared to only 13% of Baby Boomers.
This isn’t limited to mobile banking. The best banks for Millennials and Gen Zers (and for anyone) build strong relationships. They help clients navigate their accounts online and in person. Again, we base recommendations on individual client interactions and recommend products and services for your unique needs.
Reconsidering Your Account Options.
Let’s go back to that question we considered in the beginning: “Which bank is best for me?” As you map out your goals, consider your bank’s overall flexibility. How will its representatives help you move forward when things change?
If you open your first checking account with us, for instance, an expert will encourage you to consider a 401(k) when you start a new job or get a promotion. You might decide on an individual retirement account, and we will help you determine which savings instrument best suits your needs for gathering funds. When you’re at the point in your life where you can or need to make distributions, a different savings instrument might be better suited to your needs. If you decide to make a change at that time, we will also help you with that decision.
Ultimately, most people invest in multiple accounts: checking, savings, and higher-yield money market accounts. That means flexibility is key. Spreading investments out isn’t necessarily about creating fail-safes, but rather reserving money for specific purposes.
Whether you’re looking to start multiple accounts for different purchases or want to build a portfolio to secure lower interest rates on a home, it’s wise to reconsider your account options at every stage. A bank that pays attention to you, your life, and your account activity will help you on that journey.
American Bank of Missouri can get you on the fast-track toward your financial goals, from your early banking days to your twilight years. Reach out to our experts for a personalized plan.