Learning to manage your money at each phase is important!

It’s never too late to improve your financial literacy. Understanding financial concepts and skills allows you to be better prepared for specific financial roadblocks and can help avoid fraud and scams.

Check out these tools for every FECA member:

• FECA Articles are a great resource for members who have financial questions.
• Newsletters – Our newsletters cover the issues from our members most ask about. The Newsletter comes bundles when you sign up for eStatements.
• Webinars & Seminars are held periodically both online and at branches.
• FECA Social Media – Follow our Facebook and X (Twitter) channels for tips and the latest FECA financial info.

Pre-teen Years

The earlier youth experience the value of money the easier it is to grasp the concept of saving.

• Savings Account allow your children a safely store your money.
• FECA Youth Accounts come with the interactive and educational M3 Money Club.

Teenage Years (13-17)

The teenage years are when we start developing a sense of responsibility and the worth of having our own money. Teens have to start making real financial decisions like, “I want it, but do I need it.”

Gaining and maintaining financial independence is an important step for young adults. Budgeting will help make sure you have enough money to fulfill your lifestyle. Once you achieve financial stability, working to pay down debt and plan for big expenses are important. It might be time to consider investing.

Priorities: Paying bills, building a credit score, saving for a car or house, and start planning for the later years.

• Set Automatic Deposits
  Make your finances easy. Set up your paycheck to automatically deposit into your checking and savings accounts. Want to make sure your bills are paid? Set up a separate FECA account specifically for bills so there’s no risk of accidentally spending the money.
• Build Credit
  Many people have little to no credit history when starting out. Building credit begins with responsible spending. FECA Visa credit cards are an easy way to establish a credit history, especially when paying off the balance each month. Plus, a credit card is often required for things like renting a car or booking a hotel.
• Set aside cash
  Begin building a cushion to handle unforeseen circumstances. It’s recommended to have 2-3 months of living expenses in case of emergencies.
• Start your retirement fund
  The biggest benefit of being young is time. With the power of compounding interest, funding your work’s 401k early can be the foundation of retirement. If possible, try to match what your employer puts in. If you don’t have a 401k or want to save more, fund your own IRA.

How can FECA help young adults?

• Go digital
  For the tech-savvy, the FECA mobile app, eStatements, connecting to your digital wallet, direct deposit, Mobile Check Deposit, and auto-pay give you an advantage in financial management.
• FECA Visa Cards
  FECA Visa credit cards like the First Time Visa card is designed to build credit by reporting good spending habits.
• Direct Checking
  FECA Direct Checking makes it easy with Direct Deposits that can automatically distribute your paycheck into accounts designated for paying bills, saving for the future, or paying down debt.
• FECA Financial Advisor
  It’s never too early to start long-term planning, especially if you’re facing paying off student loans. Our advisors can help give your financial journey a roadmap.

How can FECA help in your early-career

• Go digital
  For the tech-savvy, the FECA mobile app, eStatements, connecting to your digital wallet, direct deposit, Mobile Check Deposit, and auto-pay give you an advantage in financial management.
• FECA Visa Cards
  FECA Visa credit cards like the First Time Visa card is designed to build credit by reporting good spending habits.
• Direct Checking
  FECA Direct Checking makes it easy with Direct Deposits that can automatically distribute your paycheck into accounts designated for paying bills, saving for the future, or paying down debt.
• FECA Financial Advisor
  It’s never too early to start long-term planning, especially if you’re facing paying off student loans. Our advisors can help give your financial journey a roadmap.

While firmly established in your career, finances may be stretched due to mortgages, loans, bills, and family expenses. Nicer cars, nicer homes, and children can easily consume your increasing income. At this point, retirement seems real for the first time.

Priorities: Paying down debt, Retirement planning

Pay off debt

By the time you are in your mid-career, you should try to resolve most of your debt. The only debt obligations you want to have are your family’s home and auto loans. Remaining almost debt-free in this phase of your life can give you more options for your retirement plans.

Retirement Plans

Retirement should become a priority in your financial plans. Talk to your financial planner on how to maximize contributions to your retirement plans. If you don’t have a retirement plan in place, open an IRA to take advantage of the tax options. Our Credit Counselors or FECA Financial Advisors can help establish plans to pay off any remaining debt.

Optimize your investments

Be deliberate about the risk you are now taking with your investments and the return you need in order to accomplish your financial dreams. Don’t be more aggressive than necessary with only a few years left to recoup losses.

Protect your assets

At mid-career, you might have dependent family members, increasing healthcare needs, and a mortgage. Protect your assets from any unexpected loss. Consider long-term care insurance to help provide the necessary funds should you, your spouse, or your parents need them.

How can FECA help in your mid-career?

• FECA Financial Advisors
  Our advisors can assist your financial planning to align your long-term goals.
• ESA
  If your kids aren’t off to college yet, even a few years of using an Education Savings Account helps.
• IRA
  Open your own retirement account where you have various tax options.
• Money Market
  High-yield accounts draw more interest while still giving you access to ATM, Debit, & check withdrawals.

Strategic debt

Carrying debt at this point should be a preference, not a necessity. Use your FECA credit cards for their benefits & rewards and pay them off monthly. Aim to reduce all debt except your primary home, vacation homes, and your vehicles.
Max fund your retirement

You should see a dramatic change in your investments and retirement plans from where they began in your early life. If you haven’t already, try to max out the amount of money allowed in your retirement accounts.
Optimize your investments

Now is the time to evaluate your risk levels in your investments. Don’t be more aggressive than you need to be. A dramatic loss could make it difficult to recover this late in the game.

Plan your exit

Some people continue working because they want to, and some work because they must. Talk to your financial planner or a FECA Financial Advisor to get a clear view of how much money you need in retirement and where that money will come from. Knowing when you can retire may change your entire view about the time left!

Create an estate plan

Decide on who is going to get and handle your money when you’re gone. Have an attorney write this into a formal estate plan. Appoint beneficiaries or joint owners to all of your financial accounts. Write down the logins and passwords to all your accounts. Make sure your loved ones know how to access your plan.

How can FECA help in your Financial Independence years

• FECA Financial Advisors
  Our advisors can assist with financial, investments, and retirement planning.
• Safety Deposit Box
  Most branches have secure boxes in various sizes. This is a convenient and secure location to store important documents or valuables within our vaults.
• IRA
  Open an additional retirement account to add to your retirement plan.
• Money Market
  High-yield accounts draw more interest while still giving you instant access to ATM, Debit, & check withdrawals.

These years should be some of the most enjoyable and fulfilling times of your life. They call these the Golden Years for a reason. Enjoy them. The ability to live the lifestyle you want with a sense of satisfaction from all you have accomplished can make your retirement truly enjoyable.

Priorities: Reduce risk, retirement location, healthcare, estate planning, enjoying retirement

• Reduce investment risk
  There’s little reason for risky investments to maintain your own wealth. Your investments should simply maintain the lifestyle you’ve planned for.
• Choose where you want to live.
  You may want to downsize your home. You may want to live on the road in a recreational vehicle. Many choose to sell their property and instead rent a space in a retirement community or assisted living facility. Investigate the many options and prioritize them.
• Health Insurance
  Having adequate health insurance is critical since health costs can throw your income off the rails. Generally, people are starting to live longer, but that also comes with increasing costs.
• Decide when to apply for Social Security
  Just because you’re retiring doesn’t mean you have to immediately apply for Social Security. Timing is crucial in determining how much you’ll receive. While you can begin receiving benefits at 62, you might want to wait until you’re 70.
• Take an inventory of your assets
  Create a comprehensive list of your assets and your investment portfolio, including financial, investment, insurance, and trust products. For each of these, make sure a beneficiary or joint owner is established, if possible. Make sure to have a copy of all the logins and passwords for all the accounts, too.
• Senior Discounts
  Take advantage of senior discounts whenever possible. Don’t be shy about asking for them. You’ve earned them!
• Stay vigilant of fraud & scams
  Retirees are often the target of fraud. Be wary of unsolicited offers. Fraudsters rely on the fact that many people don’t simply bother to investigate messages they receive via social media, email, phone, and texts. Every year, thieves target retirees to get access to their personal information and money.
  
• Start the next generation’s financial journey
  For many, children and grandchildren can be the most rewarding part of retirement, especially if you are able to help start them on their financial journey. Opening their own FECA Youth Account so they get the benefits of a credit union and can begin saving. opening long-term Share Certificates, or opening an Education Saving Account for them to take over when the time is right.
  
• Estate Planning
  Update your estate plan to make sure your accumulated wealth is passed on the those family members and charities you wish, when you wish them to receive it.

How can FECA help in your later years?

• FECA Financial Advisors
  Our advisors can assist with your ongoing financial needs throughout your retirement.
  
• Money Market
  High-yield accounts draw more interest while still giving you instant access to ATM, Debit, & check withdrawals.
  
• Education Savings Account (ESA)
  With the power of compounding interest, starting an Education Savings Account early in a youth’s life can make a huge difference in their financial journey.
• They call these the Golden Years for a reason.
  Enjoy them.