Welcome!

News Feed Item

Financing the Future

Banking in the Millennial Age

MISSION, KS -- (Marketwired) -- 04/18/14 -- (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, such as a class at school, a seminar at a local bank or online courses. When it comes to looking for advice, millennials are relying primarily on banks and their families for answers.

Not surprisingly, this group of tech-savvy individuals uses the tools of online and mobile banking to their advantage. In fact, an overwhelming 88 percent of those surveyed use online banking for executing day-to-day transactions. While technology serves as a huge resource, over half of respondents still use local branches for their banking needs.

"By arming themselves with information, this generation can take steps now to begin developing a sound financial future," Bakhshi said. "Making responsible decisions, learning about the options available to them and taking steps to safeguard their private financial data in this technology age are important aspects of financial responsibility that will pay dividends in the future."

Beyond the Basics
While the majority of millennials feel knowledgeable about basic day-to-day banking products such as checking accounts, there is room to learn about personal finance topics including savings accounts, credit cards and creating a budget. The experts at TD Bank offer the following guidelines to get you started.

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.

  • Understand minimum balance requirements before opening an account.
  • 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.
  • Verify whether there are limitations on withdraws (which can be a good way to help ensure that what you earmark for savings stays put, but detrimental if an unexpected situation arises).
  • If you're saving for a particular event or item, 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.
  • Check into policies regarding lost cards or stolen identity to understand your accountability if unauthorized charges appear on your account.
  • 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.
  • Keep track of your credit score and report issues immediately.

Budgets may feel restrictive and even overwhelming, but a monthly financial plan can help reduce stress while learning how to better manage your money.

  • First, identify all sources of income and account for all expenses for one month.
  • 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.
  • Once your monthly budget is set, make it a habit of tracking your spending and revisiting your budget every few months to ensure you are staying on track.

Financial Success Begins with You
You may be surprised by how the decisions you make as a young adult affect your long-term financial security. Follow these tips from the experts at TD Bank to lay the foundation for a smart financial future.

  • Live within your means and pay your bills on time.
  • Take the initiative to learn about banking basics such as balancing a checkbook, paying off debt and creating a budget.
  • Begin investing in a 401K as early as possible.
  • Visit your local bank branch and talk to an expert about what products are right for you.

Visit www.tdbank.com/financialeducation for additional tips to get you on the path toward financial success.

The Many Benefits of Mobile
It's easy to see why mobile banking has created quite a following. With the ability to manage money right from your fingertips, mobile apps are designed to serve everyday banking needs with ease. Here are a few of the convenient features these apps offer users anytime, anywhere:

Check Your Balance
View your account balance, pending transactions and history.

Transfer Money
Move money from one account to another without the need to visit a branch facility.

Remote Deposit Capture
Depositing money is a snap. Simply take a picture of a check and then directly deposit it into your account.

Person-to-Person Payments
This service allows you to electronically transfer funds from your account into someone else's account, replacing the need for paper checks.

About Family Features Editorial Syndicate
This and other food and lifestyle content can be found at www.editors.familyfeatures.com. Family Features is a leading provider of free food and lifestyle content for use in print and online publications. Register with no obligation to access a variety of formatted and unformatted features, accompanying photos, and automatically updating Web content solutions.

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2571667

Add to Digg Bookmark with del.icio.us Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
Developers want to create better apps faster. Static clouds are giving way to scalable systems, with dynamic resource allocation and application monitoring. You won't hear that chant from users on any picket line, but helping developers to create better apps faster is the mission of Lee Atchison, principal cloud architect and advocate at New Relic Inc., based in San Francisco. His singular job is to understand and drive the industry in the areas of cloud architecture, microservices, scalability ...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at Dell EMC, introduced a methodology for capturing, enriching and sharing data (and analytics) across the organization...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...