Mobile Navigation

Close Mobile MenuOpen Site Search

Secure Your Financial Future: Savings Strategies for Every Life Stage

Main Blog Article Content


From building an emergency fund for a rainy day to covering major purchases, saving is an important aspect of how to secure your financial future.

In this guide, we'll go over different financial planning and saving strategies for every life stage and discuss the financial products you can use to build a personalized financial plan.

Building a Strong Foundation: Setting up an Emergency Fund

More than half of Americans have enough money set aside to cover three months of expenses. From unexpected car repairs to appliance replacements, a rainy day fund can provide you with peace of mind. Ideally, you should have enough money put aside to cover between three and six months of expenses, but it's best to personalize your emergency savings goals based on your unique risks and lifestyle.

Power Financial Credit Union can help you get started with flexible savings accounts that come with dividend payments to help your nest egg grow faster and join the number of Americans striving for financial security.

Navigating Early Adulthood: Building Savings Habits

Research shows that financial education directly supports financial success. It's never too early to learn about finances, adopt a proactive approach to financial planning, and start saving.

As a teen or young adult, you can start preparing for future financial milestones with these proven strategies:
  • Track your expenses carefully and look for ways to reduce unnecessary purchases
  • As a rule of thumb, you should aim to spend 50% of your income on needs, 30% on wants, and save 20%
  • Setting up automated contributions to your savings account can help you reach or exceed this 20% mark
  • Digital tools can be helpful for gaining visibility into your finances and creating savings funds for different goals
As a parent or guardian, you can set your teen up for success by giving them access to a youth savings account. Our Cha-Ching! Accounts include checking and savings products that will empower your teen with tools like a debit card, online bill pay, and more.

If your child is under 12, our Rocky Raccoon savings account is a fun way to start saving money with tokens and rewards.

Preparing for Life Milestones: Savings Strategies for Mid-Life

Life events such as welcoming a new child, buying a home, or putting a child through college can impact your finances. You can navigate these life milestones by adjusting your financial strategy to reflect your changing goals.

Here are a few rules to keep in mind:
  • Debt payments shouldn't exceed a third of your income. Pay off high-interest accounts first and look into debt consolidation if needed.
  • Create a realistic budget for your household and stick to it. Track your expenses and allocate a percentage of your income to each spending category.
  • Establish short- and long-term goals. Break these goals into smaller financial steps you can take on a weekly or monthly basis.
  • 61% of adults invested in the stock market in 2023. If you're one of the 39% who didn't, it's time to look into developing an investment strategy.
  • Incorporating saving and investing into your budget will help you stay on track.
Power Financial Credit Union offers personalized planning and financial products for each life stage. If you're not sure where to start, opening a savings account or exploring our Investment Services will take you one step closer to achieving your financial goals.

Planning for Retirement: Securing Financial Independence

For 51% of retirees, doing other things with their time and spending quality time with their families were important factors in their decision to stop working. Building a strong financial foundation gives you the freedom to plan your exit from the workforce on your own terms. 

The best way to prepare for retirement is to invest early and give your money time to grow. If your employer doesn't offer a 401(k), look into opening an IRA. A diversified portfolio with a mix of stocks, bonds, mutual funds, REITs, and other products will help you reach your goals while mitigating your risks.

A Power Financial Credit Union representation can help with retirement planning. Our Retirement Services will help you assess your needs, compare investment options, create a tax strategy, and stay on track.

Nearing Retirement: Fine-Tuning Your Financial Plan

If you're getting close to retiring, now is a good time to review your financial plan by:

Checking your retirement savings and assess how much you can afford to withdraw on a monthly basis.
  • Finding out how much your Social Security benefits will be.
  • Reviewing your expected expenses in retirement.
  • Adjusting your portfolio to reduce risks. Prioritize products with long-term revenues, such as annuities and dividend stocks.
  • Maximizing your annual contributions and make catch-up contributions if needed.
  • Paying off any existing debts to reduce your expenses in retirement.
Our experts can help you create a personalized retirement plan when you’re ready.

Securing Your Golden Years: Post-Retirement Financial Management

Financial planning doesn't stop once you retire. Being proactive about reviewing and adjusting your financial strategy is important.

For many retirees, downsizing is a great way to save. You can even generate a profit by selling your home and purchasing a smaller one.

You should also keep investing. Prioritize low-risk vehicles such as short-term CDs, highly-rated bonds, fixed annuities, preferred stocks, and even savings accounts. Develop a withdrawal strategy to minimize taxes.

Our retirement experts are here to help with your ongoing financial planning needs in retirement.

Tailored Solutions for All Life Stages: Credit Union's Savings and Investment Options

Learn more about credit union products and how you can use them to build a personalized financial plan.

Build an emergency fund and prepare for the future with these savings products:
  Make your money work for you with these investment options:
  Choosing a credit union gives you access to personalized planning services. Get in touch with our Investment Services representatives or visit a nearby branch to start planning for the future.

Navigating Life's Unexpected Events: Using Savings as a Safety Net

Creating a safety net is an important financial milestone that will put you in a position to face the unexpected without having to borrow. Saving for an emergency fund should be a priority. You can begin your emergency fund by:
  • Temporarily scaling back on your long-term savings goals
  • Reducing your discretionary spending for a while
  • Automating savings contributions
  • Taking advantage of interest rates and promotional offers to maximize your savings
A Power Financial Credit Union representative can help you figure out how much you need to save and explore strategies for building your emergency fund.

Teaching the Next Generation: Encouraging Savings in Children

Financial literacy plays a crucial role in empowering teens and young adults to make smart financial decisions and succeed in adulthood. Teens have access to more effective programs and tools compared to previous generations, but parents and educators have an important role to play.

As a parent or guardian, you can make a difference by promoting financial education and giving your child access to age-appropriate financial products that will prepare them for adopting sound financial habits in adulthood.

It's never too early to introduce important concepts like saving, budgeting, and investing. Our Rocky Raccoon and Cha-Ching! Accounts are designed to make saving fun and gradually introduce new tools and responsibilities.

How to Secure Your Financial Future With Power Financial Credit  

Taking a strategic approach to your finances will give you an advantage as you navigate through life's milestones and unexpected setbacks. One of the most important financial strategies you can use is to save money for emergencies as well as for short- and long-term financial goals.

Power Financial Credit Union offers a wide range of financial products and resources designed to help you create a personalized financial plan. Get in touch with one of our representatives to start planning for the future.