Getting Started

Financial advice for young adults entering the work force

Laying the right foundation as you start your career is the key to future financial success, and at this lifestage, TIME is your greatest asset. Consider that each dollar you save in your 20s can be worth ten times as much as one saved in your 40s. Through the magical power of compounding, the beginning of your working life is the prime time to start saving towards retirement—even though many people don’t want to think about, or worse yet, act on this principle.

During this time, young adults have the exciting task of learning how to manage the spending and saving of their money within the constraints of their income. Here are some steps to take now to put your financial future on track:

1. Identify your short, medium and long-term goals and budget your money accordingly

Your short term goals of less than five years might encompass a wedding, honeymoon, furniture or a new car. Medium term goals could include the purchase of a home and financing your future children’s college education, followed by long-term retirement goals. These goals will help you determine how to spend and save your money.

Build assets through saving at least 5 percent of your income – It may be wise to invest in CDs or money market funds for your short term goals and the stock market for your longer term goals. Historically, the stock market has outperformed other types of investments over comparable time periods, but it’s not for the faint of heart. You may also want to join a 401K plan if available from your employer or open up an IRA account.

State Bank of Cross Plains can help compound your savings with an account that’s right for you:

  • Fixed Rate CD - The perfect term to meet your individual needs from 91 days to 5 years. with a fixed interest rate paid on entire balance.
  • Premium Plus Money Market – Our Premium Plus Money Market Account has all the benefits of a savings account, but with limited check writing privileges and our best interest rate!
  • IRA - Traditional and Roth IRAs offer tax advantages, which can help you save more for retirement. Retiring or leaving a job? We offer Rollover IRAs to help you maintain tax deferral on your 401k or other employer-sponsored retirement plan.
  • Interest Checking
  • Ultimate Interest Checking

Establish an emergency fund – A good guide is to save three to six months’ worth of living expenses to cover rent or house payments, utilities, car payments, food, transportation and insurance into a separate bank account that could be easily accessed in the case of job loss or uncovered medical expenses. Don’t use the money for anything else.

State Bank of Cross Plains recommends these accounts for the establishment of your emergency fund:

  • Personal Savings – The State Bank Personal Savings Account is the choice for customers looking for a low minimum balance account. A great place to save for a special purchase.
2. Conserve time, money and paper with the State Bank of Cross Plains convenient checking accounts with online banking and bill pay and no-charge ATM services

You’ll reduce the time it takes to pay your bills and save on the expense of printed paper checks and postage while helping the environment as well.

  • eBank! – State Bank of Cross Plains is always trying to provide the best services and products to make your banking easier. eBank! is part of our Access Anytime, Anywhere products that provide you with convenience and savings. In today’s busy world, you need the flexibility to choose when, where and how you want to bank. eBank! gives you that flexibility.
  • eMobile – State Bank of Cross Plains’ eMobile lets you take command of your finances, anytime, anywhere. State Bank of Cross Plains’ eMobile lets you use your cell phone to do just about all of your personal banking.

Borrow wisely – Avoid high-interest credit cards and pay off your credit card debit monthly. Work with State Bank of Cross Plains for your major lending needs including personal and vehicle loans, home mortgages and home equity lines of credit.

  • Mortgage loans – Home ownership has many benefits. Whether you are a first time buyer, upgrading, or building a new home, our Mortgage Professionals at the State Bank of Cross Plains are available to answer any questions that pertain to your unique and individual situation, and offer a wide variety of mortgage products to meet your needs.
  • Personal loans – Whatever your needs are, we can help out with a little extra cash
  • Auto Loans – Whether it's your first car, your dream car or time for a minivan, we can help with an auto loan. And we also have calculator resources available to help you make some decisions. For instance, is it better to lease or buy? Is the dealer teaser rate a good deal or not? Or, is a home equity loan a better idea for you?
3. Understand your credit report

Your financial behavior over the past seven years, including how much credit you have, how long you've had it and whether you pay your bills on time is information included in your credit report. Three credit reporting agencies — Equifax, TransUnion and Experian — maintain these reports, and lenders buy them to help them decide whether to offer you a prequalification. Your credit report also carries your credit score ranked between 300 and 850 that many lenders use to decide whether you are creditworthy and will repay a loan. Your credit score can also influence the interest rate you pay. In many cases, the higher your score, the lower your interest rate. Your credit score is available from the three credit reporting agencies:

Equifax –

TransUnion –

Experian –



  • Pay off your credit card debt. It is senseless to pay 13 – 20 percent interest on credit card payments while your savings accounts earn one or two percent.
  • If you cannot pay off your credit card debt, pay more than the minimum payment each month which in some cases will only cover the interest charges.
  • Don’t worry too much about paying off student loans early. These normally have a much lower interest rate than credit cards. By making low payments on student loans, you’ll have more money to reduce high-interest credit card debt.


For help determining the best accounts and products for sound and productive money management during your Getting Started Lifestage, please contact us at 855-CLOSE2U (855-256-7328)  or email us.