Insurance & Financial Services
Securing Your Financial Future Bank of America offers resources to help young adults reach their financial goals BY CHIP ROSSI
BACK-TO-SCHOOL SEASON is upon us, and it is important to discuss spending habits as well as tips on budgeting and saving. A recent Bank of America Better Money Habits survey found that while Gen Z is knowledgeable about basic financial concepts, knowledge levels start to decrease when it comes to topics more critical to securing a financial future—such as credit scores, paying down debt, applying for/managing credit cards, investing, and saving for retirement. Learning more about your money can help build financial know-how. Here are some suggestions to consider: • Reduce debt with smart saving and spending: One way to lighten your debt load is to practice responsible credit card habits. When using a credit card, make sure to pay off your balance on time and in full and only make purchases you can pay back. Spending within your means will leave more money at the end of every month and help reduce your debt. As an added bonus, spending less than your limit allows will also help you build a stronger credit score. • Make sure you’re not leaving financial rewards on the table: As you’re reviewing your financial plan, make sure you’re taking easy steps to get rewarded for all your everyday spending. Enroll in loyalty programs of the places you shop with the most, including department, grocery, and clothing stores, restaurants, and more. As you spend, use a cash back credit card to get even more money back. Don’t forget to enroll in a banking rewards program. Your bank might reward you for your relationship— consider consolidating your finances with one banking institution to take advantage of that opportunity. 66
• Use investing platforms with educational resources: As the most internet-savvy generation, Gen Z is best positioned to access and understand digital tools—and investing should be no different. Bank of America alone saw an increase of 525,000 new accounts on its Consumer Investments business in 2021. With the increase in new, young investors to the market over the past year, it’s more important than ever for young investors to brush up on their financial knowledge and use digital platforms that feature educational resources. Using digital tools is just one way that investors, both seasoned and new, can expand their financial literacy and become more confident investors. Bank of America’s website and its Better Money Habits online resource provides a number of tools and easy-to-understand videos. The platform offers free financial education content that breaks down financial topics in ways that are approachable and easy to understand, and connects people at all life stages to relevant tools that help build know-how to help them take action toward their financial goals. It also includes specific resources catered to Gen Z and young adults, covering topics including budgeting, building credit, borrowing, investing and more. n
Chip Rossi is president of Bank of America Delaware.
July / Aug us t 2 0 2 2
| DELAWARE BUSINESS
