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Saving Money at Any Age 

Your saving priorities are likely to change in each decade of your life. Learn how to focus your savings in your 20s, 30s, 40s and beyond.

Saving money may seem daunting, but it’s never too late – or too early – to start saving for your future. By making deliberate, incremental choices over time, you can simplify the process and achieve big goals.  

From analyzing your finances to opening a high-yield savings account, below are strategies to help you start saving at any age.  

Saving in Your 20s: Find Your Footing

Since many people start receiving a salary for the first time in their 20s, this is a great time to start saving for your future. A regular paycheck, big or small, gives you the ability to determine your financial goals and save for your future.   

If you’re in your twenties, the first priorities should be to: 

  • Establish an emergency fund. Set aside a percentage of your paycheck each pay period to help you build an emergency fund that’s equal to three to six months of your expenses. An emergency fund gives you the freedom to handle unexpected changes with less stress, like having to change jobs suddenly, unexpected car repairs, or putting a security deposit down for a new apartment. And if you’re using a high-yield savings account as your emergency fund, this allows you to save more over time compared to a traditional savings account.
  • Create a debt repayment plan. It’s a good idea to set aside a percentage of each paycheck to chip away at any debt and protect your credit score. In addition to building an emergency fund, creating a repayment plan for student loans or credit card debt is one of the most important financial goals to tackle when you’re starting out on your financial journey.  
  • Save for retirement. It’s hard to think about retirement when it’s further down the road, but the earlier you start saving for retirement, the less you’ll need to save over time. That’s because the money you save early in your career will have more time to grow.  It’s also important to make sure you’re taking advantage of any retirement plans available at work, like a 401(k) – and contribute enough to get your employer’s matching contributions.

By taking these steps, you can give yourself peace of mind while providing more financial freedom and room for future goals.  

Saving in Your 30s: Settle into Your Goals

In your 30s, you may be more established in your career and ready to tackle longer-term goals, like getting married, buying a house, having kids, starting a business, or helping address social and environmental challenges that affect your community. 

New life events may prompt you to revisit your budget. Financial goals may shift to include: 

  • Saving for a down payment. Whether you’re shifting from renting to owning or planning for a move to your forever home, you’ll want to start saving up for the down payment on your future property. Experts recommend saving 20% of the purchase price as a down payment—and that’s separate from your emergency fund, as you’ll need it to protect yourself from unexpected costs down the road.
  • Saving for kids’ college: If you have kids, you may want to consider opening a 529 plan account to save for your child’s college tuition. Authorized by Section 529 of the Internal Revenue Code, 529 accounts allow you to withdraw funds to pay for educational expenses like college tuition, eligible expenses such as books, and even some college housing costs – all tax free.  
  • Supercharging your retirement path: If you weren’t able to start saving for retirement in your 20s, now is the time to take advantage of your employer-sponsored retirement benefit plans. Some financial advisors recommend putting as much as possible into a 401(k) to save on taxes and, if you can, open a Roth IRA to save even more for your retirement.

And while saving for your future is important, you may also be invested in protecting the future of our planet, too. With Forbright Bank’s Growth Savings, you’re able to save more for you, while making a positive difference in the world around you.  

While banks traditionally lend money to a wide range of projects that can include fossil fuels, Forbright Bank is committed to sustainability and financial responsibility, serving the environmental needs of the future and the financial needs of our customers. 

Saving in Your 40s: Protect What’s Important 

In your 40s, your savings mindset might shift toward protecting the life you’ve built. During this decade, your focus may be on your growing family, career, and making a lasting impact on the world around you. 

  • Broaden your savings goals. As your career expands, you may start reaching your peak earning years during this decade. With more income, it may be a good idea to recalibrate what an adequate emergency fund might look like. At the same time, you may be able to afford to splurge on more expensive items or vacations. As you enjoy your earnings and career mobility, it is still important to plan for retirement. If you’ve reached the contribution limit on your employer’s 401(k) account, it may be a good idea to consider a tax-advantaged retirement account like a Roth IRA. With a Roth IRA, you deposit post-tax dollars, so once you reach the appropriate age, you can start withdrawing your contributions tax-free. And if you need the option to access your savings at any time while continuing to grow your savings for retirement, consider opening a Forbright Bank Growth Savings account alongside other savings products, like an IRA. 
  • Catching up on potential setbacks. If you experienced a financial setback such as a layoff, period of unemployment, or a divorce, you may need to spend time in your 40s getting your finances reset. This is a perfect time to consider opening a high-yield savings account to help maximize your savings and get back on track with your financial goals.
  •  Teaching kids to build savings habits. If you have children, now may be the perfect time to start teaching them healthy financial habits. Research has shown that money habits can form as early as age seven, which means your children may be ready to take on chores to help them meet their goal of buying a new toy while learning financial wellness habits about saving or budgeting. One fun way to encourage your child to save is by matching their savings. Just as a business offers a matching contribution to your retirement fund, you can offer them a matching contribution in a high-yield savings account. Because of compounding interest, your savings in a high-yield savings account like Growth Savings will continue to grow more over time.
Saving in Your 50s and Beyond: Create Your Lasting Legacy 

In your 50s, it’s time to think about how you might transition smoothly into retirement, setting up health care goals and securing your financial legacy. Savings will continue to be important as your goals shift to include:  

  • Ramping up retirement savings. If you’re 50 or older, as traditional retirement could be less than 20 years away, the IRS allows you to save higher annual amounts in tax-advantaged retirement accounts such as a 401(k) or IRA.
  • Planning for long-term health care costs.  It’s important in later life stages to plan for your career and retirement goals while understanding potential healthcare needs. In your 60s, you’ll need to apply for Medicare. For most people, Medicare eligibility starts at age 65.
  • Deciding when to start taking Social Security benefits. Most people can choose to begin taking Social Security benefits between the ages of 62 and 70. If you wait to receive Social Security benefits until age 70 (or close), your monthly benefit will be larger. Building up your liquid savings or continuing to work through your 60s may allow you to delay Social Security benefits.
  • Creating the life you want. As you age, you’re likely evaluating how you spend your time and money during retirement. That may lead you to deprioritize salary, travel more, or focus on spending more time with loved ones. Maybe you’ve chosen to start a new business venture, or perhaps you’ve relocated to a new city to broaden your scope or influence.  

Regardless of your age or financial goals, Forbright Bank Growth Savings can provide a great solution to growing your savings. With no fees, no minimum deposit, and easy-to-use online banking, Growth Savings is built to do more for your money. Plus, you can rest assured that when you save with Forbright Bank, you’re supporting a more resilient, greener future.  

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.

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