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From mowing lawns to stocking shelves, Vikings players are sharing their first jobs and first paychecks. Big wins start small. What is your first paycheck story?
Ready to make your hard-earned money work for you? Start building a strong financial foundation and achieve wins with your paycheck – even if it’s from mowing lawns or stocking shelves.
If you’re a member of Gen Z, you may have been in the workforce for a few years – or you may be on the cusp of receiving your first paycheck. Either way, it’s essential to have a playbook for your money to help set the tone for your financial future.
Just as the start of your career sets you in motion, your first paycheck is a launchpad for your financial independence. Whether you’re starting your first job or transitioning to a new one, the professional experience you gain is valuable, and so are the financial skills you develop along the way. Like an athlete training for better performance, every move you make with your money can help you get closer to your goals.
Here’s a refresher on what you do once your paycheck hits your bank account.
One of the most important financial tips for Gen Z, and any other group, is to use a budget. A budget is simply a plan that directs your money. A simple framework is the 50/30/20 rule.
This framework provides a clear path for your income. You can track your spending with apps or a spreadsheet to stay on course. The goal is to make your money work for you, not the other way around.
Life is unpredictable. An emergency fund is your cushion to account for unexpected costs, like a car repair or a medical bill, without derailing your financial progress. Financial experts often recommend saving three to six months' worth of living expenses.
That number can feel intimidating, but you can start small. Automate a transfer from your checking to your savings account each payday. Even a small, consistent amount builds over time. Think of it as a non-negotiable bill you pay to yourself first.
Your employer may also offer insurance benefits, such as health and disability coverage. These are essential parts of your safety net, protecting your health and your ability to earn an income.
Once you have a handle on your daily cash flow, you can focus on strategic planning. This involves managing any debt you have and starting to save for the long term.
Many people enter the workforce with student loans or credit card debt. A strategic approach can help you manage it. For student loans, explore different repayment options, such as income-driven plans that adjust your monthly payment based on your earnings.
Credit cards are powerful tools for building a strong credit history, which impacts your ability to get loans for cars or homes in the future. The key is not to avoid using credit, but to use it wisely. Pay your balance in full each month to avoid high-interest charges. A good credit score is a reflection of your financial reliability.
Investing may sound complex, but the most important factor is time. Thanks to the power of compound interest, even small amounts invested early can grow significantly over time.
Your workplace retirement plan, like a 401(k), is an excellent place to start. Many employers offer a match, which means they contribute money to your account when you do. If your employer matches up to 5% of your salary, contributing that amount is like getting an instant 100% return on your investment. It is one of the smartest financial moves you can make.
Top athletes build successful careers with discipline and smart plays. The same principles apply to your finances.
Your first job was just the beginning. The financial habits you build today create momentum for a successful future. By taking deliberate, strategic steps with your first paychecks, you can take ownership of your financial journey.
Ready to put your plan into action? Explore U.S. Bank resources to help you budget, save and invest with confidence.
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