What financial advice would you give your younger self?

November 04, 2020

If you could go back in time and give yourself financial advice, what would it be? We were curious, so we asked U.S. Bank employees to share the advice they’d give their younger selves.

 

Most people look back and wish they had handled something in their financial past differently, and that includes those of us at U.S. Bank.

So we posed a question to our colleagues: If you could give your younger self financial advice, what would it be? After looking through the responses, three pieces of advice kept rising to the top: Try to save and budget your finances instead of spending unnecessarily (but still plan for fun!), invest in your 401(k) or other retirement account, and spend within your means. We’ve included some of the top responses1 below.

 

SAVE and BUDGET!

The advice most of our colleagues us at U.S. Bank would give their younger self? Quite a few said they would have saved more and created a budget. Remember, while budgets should include need-to-haves (housing, loan payments, etc.) you can also work fun items into your budget like dining out, shopping, entertainment, etc. Budgets don’t need to be boring!

Here's what they had to say:

“Pure and simple, saving will always keep you moving forward and before making any purchases decide if it is a WANT or a NEED. This has definitely helped my older self-prepare for the future.”  – Renee M., Reporting, St. Louis

“Open separate saving accounts; one for short-term/emergency needs, and another for long-term needs (like a home or vehicle down payment). When the time comes and you need that cash, you’ll be happy you saved in the past.” – Jess O., Marketing, Minneapolis

“Pay yourself weekly, bi-weekly or monthly! I started putting $10.00 in savings each week.” – Mary W., Customer Service, Knoxville, TN

“Budget rainy day funds, vacation funds, emergency funds, charity funds are all good to set goals for/save for...think ahead and budget for what you want Invest in retirement early - and leave that investment alone Be wary of credit - just because you CAN doesn't mean you SHOULD Live below your means, again, just because you CAN doesn't mean you SHOULD.” – Amy J., Technology Services, Minneapolis

“One thing I'd tell my younger self is, when embarking on very large expenditures (things like college tuition, first apartment rent, trips, etc.), to actually sit down and make a budget. Calculate how long it'll take you to pay off the expense/debt you will accrue and how it would impact other expenses and savings goals, and what even one unexpected expense could do to your monthly or even yearly forecast. I probably would have needed help from a parent or family member to help me put it together, but I think performing such an exercise at key moments in my formative years would have been instructive.” – Theresa M., Support Services, Milwaukee

“Set up a budget that also focuses on paying down debt so that’s not forgotten. And, pay more, or more often, so you’re chipping away at debt faster than just paying the minimum.” – Jon G., Marketing, San Fransicso

 

Invest in your 401(k)

Many employees at U.S. Bank said they should have paid closer attention to their retirement savings and the details of their employer programs.

Here’s what they had to say:

“Don't underestimate the power of compound interest! Put money in that 401(k) and leave it there. Write a budget every paycheck and be a good steward of what you're given. Also, don't sell that truck you had in 2006.” – Caleb S., Branch Manager, St. Clair, MO

“If you can, max out your 401(k) contributions. Also look into an IRA as another long-term saving option and see if you can contribute there as well.” – Jon G., Marketing, San Fransicso

“My biggest advice would have been DON'T WAIT and find someone to answer all my questions about 401(k)! I waited several years after starting a job to setup and fully contribute to my 401(k) and I wish I would have done it right away. Hard to explain to my 16-year-old self that sacrificing the limited income I had at the time would pay off in 30, 40, 50 years!” – Gina R., Wealth Management, Milwaukee

“Start saving for retirement as early as possible. Be willing to sacrifice on discretionary spending now so that your financial future is secure. If your employer offers a retirement plan, take advantage of it, especially matching. Whether or not your employer offers a retirement plan, do your own saving in the form of an IRA. Especially if you're self-employed!” – Robert L., Business Technology, St. Paul, MN

“Put $25 a month in an IRA or some retirement product.” – Anne F., Risk Management, South Dakota

“If you change jobs, remember your 401(k) with your previous employer and transfer it over so it stays with you. Don’t lose sight of all your hard-earned savings.” – Jayn F., Human Resources, Minneapolis

 

Only spend what you have

It’s not always possible to spend within your means. Emergencies come up, life happens! But when possible, our colleagues said their advice was simple, spend within your means and be mindful of your dollars.

Here’s what they had to say:

“Understand the difference between wants and needs. Satisfy your needs, drop a bit in savings, and limit your splurging. When you work hard, it's important to feel rewarded for your efforts to keep yourself pushing for more, but you must keep a balance. Overspending in my 20's meant focusing on paying off debts in my 30's. So, give yourself an allowance for fun money, save for big purchases, and keep that savings separate from your rainy-day fund and your retirement fund.

Which leads to the other bit - credit cards are not free money! Don't see a want and whip out the credit card. Use them wisely to build your credit (example: only use it for filling up your gas tank and pay it off before the billing cycle closes each month) but temper yourself. Keeping up with the Jones' isn't worth the debt.” – Rachel H., Payment Services, Knoxville, TN

“When using your credit card, make sure to pay off whatever you put on within the billing cycle so you don’t end up paying more due to interest. That’s something I learned the hard way, now I keep an eye on those spends I make with my credit cards a little closer.” – John O., Retail Payments, Horsham, PA

“I wish I knew more about store credit cards. They’re offered everywhere and seem to be a great deal and savings when purchasing items. Now, if I open a card, I make sure to pay it off right away, so my interest doesn’t rack up.” – Angela S,.Business Banking, Cincinnati

“Don’t buy things to keep up with your friends and what they have. Instead, take time to think your purchases over don’t impulse buy!” – Sarah M, Application Development, Earth City, MO

“Buy fewer things and live more simply. A closet full of cheap cute clothing adds up and becomes wasteful..” – Jess O., Marketing, Minneapolis

 

It’s never too late to start practicing mindful spending. Learn more about how you can start paying close attention to your dollars.

 

 

1The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

Related content

Investment strategies by age

What to do with your tax refund or bonus

6 things to know about long-term care insurance cost and benefits

Essential financial resources and protections for military families

Military homeownership: Your guide to resources, financing and more

Do I need a financial advisor?

How to plan and save for adoption and in vitro fertility treatment costs

Preparing for retirement: 8 steps to take

Car shopping: Buying versus leasing your next vehicle

For today's homebuyers, time and money are everything

How I did it: Bought a home without a 20 percent down payment

Money Moments: Tips for selling your home

Should you buy a house that’s still under construction?

3 ways to keep costs down at the grocery store (and make meal planning fun)

5 things to consider when deciding to take an unplanned trip

Certificates of deposit: How they work to grow your money

How having savings gives you peace of mind

A who’s who at your local bank

Major purchases: How to pay for big ticket items

Saving vs. investing: What's the difference?

What financial advice would you give your younger self?

Dear Money Mentor: How do I pick a savings or checking account?

10 ways to increase your home’s curb appeal

What you should know about buying a car

5 things to avoid that can devalue your home

9 simple ways to save

3 awkward situations Zelle can help avoid

Here’s how to create a budget for yourself

Money Moments: How to manage your finances after a divorce

Helpful tips for safe and smart charitable giving

Money Moments: 8 dos and don’ts for saving money in your 30s

Tips to raise financially healthy kids at every age

Travel for less: Smart (not cheap) ways to spend less on your next trip

Understanding guardianship and power of attorney in banking

Should you buy now, pay later?

What’s in your emergency fund?

What you need to know about renting

From LLC to S-corp: Choosing a small business entity

6 tips for trust fund distribution to beneficiaries

How to build wealth at any age

How to manage your money: 7 tips to improve your finances

LGBTQ+ financial planning tips

Should I itemize my taxes?

Your 5-step guide to financial planning

What is Medicare? Understanding your coverage options

Are professional movers worth the cost?

5 financial goals for the new year

Retirement savings by age

Annual insurance policy review checklist

Allowance basics for parents and kids

Loud budgeting explained: Amplify your money talk

How I did it: Turned my side hustle into a full-time job

Retirement plan options for the self-employed

Checking and savings smarts: Make your accounts work harder for you

5 reasons why couples may have separate bank accounts

It's possible: 7 tips for breaking the spending cycle

Myths vs. facts about savings account interest rates

Closing on a house checklist for buyers

Multiple accounts can make it easier to follow a monthly budget

Is it time to get a shared bank account with your partner?

Don’t underestimate the importance of balancing your checking account

7 steps to keep your personal and business finances separate

How to Adult: 5 ways to track your spending

Which is better: Combining bank accounts before marriage — or after?

5 tips for parents opening a bank account for kids

6 questions students should ask about checking accounts

30-day adulting challenge: Financial wellness tasks to complete in a month

Estate planning checklist: 8 steps to secure your legacy

8 steps to choosing a health insurance plan

Key milestone ages as you near and start retirement

How to build a financial plan that covers your savings and expenses

5 ways to maximize your garage sale profits 

Estate planning documents: Living trusts vs. will vs. living will

Why estate planning is important

How a Health Savings Account (HSA) can benefit your retirement plan

Year-end financial checklist

Finance or operating lease? Deciphering the legalese of equipment finance

Buying or leasing? Questions to ask before signing a contract

Insource or outsource? 10 considerations

The secret to successful service provider integration

Safeguarding the payment experience through contactless

COVID-19 safety recommendations: Are you ready to reopen?

Unexpected cost savings may be hiding in your payment strategy

How to sell your business without emotions getting in the way

5 steps to take before transitioning your business

10 tips on how to run a successful family business

Talent acquisition 101: Building a small business dream team

Costs to consider when starting a business

How to test new business ideas

The costs of hiring a new employee

How to expand your business: Does a new location make sense?

Meet your business credit card support team

How to choose the right business checking account

Break free from cash flow management constraints

How to build a content team

Multigenerational household financial planning strategies

How to track expenses

How to manage your finances when you're self-employed

Good debt vs. bad debt: Know the difference

Good money habits: 6 common money mistakes to avoid

Reviewing your beneficiaries: A 5-step guide

How to talk about money with your family

Financial steps to take after the death of a spouse

Retirement advice: How to retire happy

Retirement income planning: 4 steps to take

Preparing for retirement: 8 steps to take

Transitioning from the military to the civilian workforce

Working after retirement: Factors to consider

4 steps to finding a charity to support

Year end tax planning tips

Tips for navigating a medical hardship when you’re unable to work

3 steps to prepare for a medical emergency

11 essential things to do before baby comes

Webinar: Uncover the cost: Starting a family

Preparing for adoption and IVF

Checklist: 10 questions to ask your home inspector

Resources for managing financial matters after an unexpected death

What you need to know as the executor of an estate

What documents do you need after a loved one dies?

How does money influence your planning?

College budgeting: When to save and splurge

How to save money in college: easy ways to spend less

How to gain financial independence from your parents

The A to Z’s of college loan terms

Practical money skills and financial tips for college students

How I did it: Paid off student loans

Bank Notes: College cost comparison

Tips to earn that A+ in back-to-school savings

Pros and cons of a personal line credit

3 tips for saving money when moving to a new home

3 financial tools to help automate your finances

5 tips for creating (and sticking to) a holiday budget

Financial checklist: Preparing for military deployment

Growing your savings by going on a ‘money hunt’

Working with an accountability partner can help you reach your goals

Why a mobile banking app is a ‘must have’ for your next vacation

How to decide when to shop local and when to shop online

5 myths about emergency funds

Does your savings plan match your lifestyle?

Uncover the cost: Wedding

Uncover the cost: International trip

Are savings bonds still a thing?

Tips to overcome three common savings hurdles

Adulting 101: How to make a budget plan

Personal loans first-timer's guide: 7 questions to ask

Mindset Matters: How to practice mindful spending

How can I help my student manage money?

How to manage money in the military: A veteran weighs in

You can take these 18 budgeting tips straight to the bank

3 tips for saving money easily

Save time and money with automatic bill pay

How to best handle unexpected expenses

Stay on budget — and on the go — with a mobile banking app

Do you and your fiancé have compatible financial goals?

U.S. Bank asks: Transitioning out of college life? What’s next?

U.S. Bank asks: Do you know your finances?

U.S. Bank asks: Do you know what an overdraft is?

Personal finance for teens can empower your child

How to save for a wedding

How compound interest works

Dear Money Mentor: How do I set and track financial goals?

Lost job finance tips: What to do when you lose your job

Money Moments: 3 smart financial strategies when caring for aging parents

Money management guide to financial independence

First-timer’s guide to savings account alternatives

7 financial questions to consider when changing jobs

How to stop living paycheck to paycheck post-pay increase

Practical money tips we've learned from our dads

6 ways to spring clean your finances and save money year-round

How to cut mindless spending: real tips from real people

How to increase your savings

Bank from home with these digital features

How grandparents can contribute to college funds instead of buying gifts

How to open and invest in a 529 plan

Using 529 plans for K-12 tuition

Parent checklist: Preparing for college

What to consider before taking out a student loan

Consolidating debts: Pros and cons to keep in mind

How to use debt to build wealth

Crypto + Homebuying: Impacts on the real estate market

House Hacks: How buying an investment property worked as my first home

Spring cleaning checklist for your home: 5 budget-boosting tasks

Saving for a down payment: Where should I keep my money?

Your guide to breaking the rental cycle

4 ways to free up your budget (and your life) with a smaller home

Beyond the mortgage: Other costs for homeowners

10 questions to ask when hiring a contractor

Improving your credit score: Truth and myths revealed

U.S. Bank asks: What do you know about credit?

Take the stress out of buying your teen a car

Questions to ask before buying a car

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.