Focus Magazine of SWFL Swimsuit Heat Wave | Page 54

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FAMILY FEATURES

Though much is made about millennials and their sense of
responsibility (or lack thereof), new research suggests that
when it comes to managing their money, this generation takes
few risks.
According to the TD Bank Financial Education Survey, 47
percent of millennials (adults ages 18 to 34) described their
financial personality as being cautious when it comes to overall
personal finance habits. A desire for more information to guide
their money decisions was a common theme of the survey.
“Millennials want more support with their personal finances,”
said Nandita Bakhshi, executive vice president, Retail Distribution and Product, TD Bank. “They recognize that financial
education is a key component of financial success, and they
need to feel empowered so they become more confident about
their financial futures.”
According to the TD Bank survey, the majority (69 percent)
of this generation has no formal financial education training.
When it comes to looking for advice, millennials are relying
primarily on banks and their families for answers.
“By arming themselves with information, this generation can
take steps now to begin developing a sound financial future,”
Bakhshi said.
Beyond the Basics
Savings account options vary from simple accounts (generally with lower minimum balance requirements, but also lower
rates of return) to more sophisticated accounts that reward
you with higher interest rates as your balance grows.
• Consider opening a savings account at the same bank as
your main checking account. Many banks offer special benefits
for having multiple accounts such as lower balance requirements or higher interest rates.
• Look for accounts that offer low or no maintenance fees or
ones that waive the fee as long as you maintain a low minimum balance.
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• Inquire about special goal-oriented accounts that generally allow lower balances and can help ensure you reach your
target.
Credit cards allow you to borrow money to pay for products
or services. The upside is that responsible credit card management can boost your credit score, qualifying you for lower
interest rates in the future. However, it is important to avoid
getting overextended with debt.
• Compare costs (the interest rate, as well as charges, such as
annual and balance transfer fees) versus rewards. While free
is always appealing, remember that modest fees may be worth
the expense in exchange for robust mileage or cash-back
programs.
• Confirm payment details, including minimum payment requirements, payment deadlines and the grace period.
• Commit to always paying on time to avoid late fees and penalties to your credit score, and avoid paying only the minimum
to keep your debt low.
Budgeting a monthly financial plan can help reduce stress
while learning how to better manage your money.
• Avoid the mistake of only budgeting for major bills. Make
sure to include monthly expenses such as a rent, groceries or
gym memberships.
• Remember to pay yourself and allocate money for savings.
• Subtract your total monthly expenses from your monthly income. If you have a surplus, determine how you’ll use it (such
as devoting more to savings). If the balance is negative, make
adjustments to ensure you’re living within your means.

www.tdbank.com/financialeducation