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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.
2.

Build assets through saving at least  X 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.

First National Bank at Paris can help compound your savings with an account that’s right for you:

CD's  

  • Minimum opening balance of as little as $500 and no more than $1000 depending on term
  • Terms as short as 91 days and as long as 5 years
  • Interest compounded at maturity for CDs of 91 and 182 days
  • Interest compounded quarterly for CDs of 1 year to 5 years

Flex Money Market Account

  • No service charge with a minimum balance of $2,500 
  • Competitive rate of interest based on balance
  • Limited number of transactions

                   - 6 withdrawals per month

                   - 3 by check

IRA CDs  

  • Terms of 1 year to 3 years
  • Minimum opening deposit of $250
  • Interest compounded quarterly 
3.

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.

First National Bank at Paris recommends these accounts for the establishment of your emergency fund:

Savings Account

  • Minimum opening deposit of $50
  • Interest compounded quarterly
  • Earn interest on entire balance

Health Savings Account  

  • Minimum opening deposit of $50
  • Interest-bearing checking account
  • Tax-exempt account for the purpose of paying qualified medical expenses
  • Eligibility requirements explained on product page
4.

Conserve time, money and paper with First National Bank at Paris’s 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.

E-Bank Checking

  • Minimum opening deposit of $50
  • No service charge
  • No minimum balance requirement after opening
  • Unlimited check writing
  • and more
5.

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

Mortgage loans  

  • Construction loans
  • Adjustable Rate In-house Loans
  • Secondary Market Fixed Rate Loans
  • Home Equity Loans


Consumer loans

  • Vehicle - Car and Truck
  • Vacation
  • Recreational vehicle - Boat, Motorcycles, 4-Wheelers, Etc.
6.

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: 

For help determining the best accounts and products for sound and productive money management during your Getting Started  Lifestage, please contact us.

Tips for Effective Financial Management

  • 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.