Tips for each stage of life can help with financial resolutions

By Kyle Schmidt

Following an expensive holiday season of buying gifts, dining out and hosting parties, financial matters are top of mind for many as a new year begins.

For those resolving to improve their finances in 2024, we looked to some experts at First Option Bank. They offered tips people of all ages can use to become more financially healthy.

Young adults can use 2024 to get started on the right path financially.

“Once you turn 18, you have no credit history,” said Sheldon Booe, an investment officer at First Option. “So if you can start, I know Discover has a student credit card that is zero fee, credit limit of $7,000 to $10,000, so that is great for students going to college.”

Booe said members of Gen Z can benefit from a 50-25-25 strategy. This is when 50% of a paycheck goes to necessities, 25% goes to want and 25% goes into savings.

Don’t worry millennials, you’re not left out. Mark Glenn, a portfolio manager, said those who have been in the workforce longer should be making sure they are getting the most out of all employment benefits.

“Take advantage of your employer match on your 401k and max that out,” Glenn said. “If your employer will match up to 5%, 6% or 7%, whatever it is, make sure you’re taking advantage of that because that is free money coming in. If you put in $100 and they match $100, that’s automatic 100% return right there.”

He also said managing credit card debt is important so high interest rates don’t add more expenses.

“This age group is all about savings,” Glenn said.

Gen Xers should start to have a sense of urgency around their finances, said Amy Winterscheid, a trust officer.

“Time to start making that financial plan that you can work on as well as that estate plan making sure you have trust in place,” Winterscheid said. “Making sure you have thought through how you want your wealth to carry on, how to protect your beneficiaries, all really important things, now it’s time to start thinking about that.”

Another tip would be to start planning for retirement in this age range as it will be arriving soon for some.

For those looking to retire, Keri Peterson said working on making straggling last payments is something to take care of.

“Now we are just finishing off the last outstanding credit card debt or student loan debt,” Peterson said. “Get that taken care of so it is not an outflow when you do retire.”

These tips will help people who hit retirement age to relax a little and enjoy life.

Of course, finances are not so black and white. Everyone goes through different things and it is overwhelming to find where to start. Ivy Cole, a senior investment officer, suggests starting with budgeting.

“It is always good to lean on a financial advisor,” Cole said. “It’s OK to reach out and lean on professionals.”