Client Relationships

The different stages of life through National Savings Day

Written by Brittany Westdyke, EA
Published Oct 12, 2020
2 min read

As you help your clients move through different stages of their lives, they will hit different milestones. Whether that is college, marriage, house hunting, or even parenthood, there are events in their lives they should start to save for. Ahead of National Savings Day on Oct. 12, here are a few savings tips to hit those milestones; regardless of what stage of life your clients are in, a savings goal is important. The first step is to determine what they want to save for, and then figure out how long they have to meet that goal. Here are a few examples on what to save for at different stages of life.

The recent graduate. If you have clients who are recent college graduates just starting their career, help them look for ways to start saving early for retirement. It may sound extreme, but it is never too early to start saving. Ask them to look into the benefits offered by their employers, including a 401(k) plan. If available, advise them to start contributing immediately, especially if the company is matching a certain percentage of their contributions. Those contributions will add up quickly over time, and the more years they can contribute to retirement, the better they will be in the long run.

The newlywed. If you have a client who is a newlywed, an important savings goal might be to save for an apartment lease or to buy a home. Help them determine how much money they will need to meet this goal as soon as possible, and divide that sum by the number of months or years they plan to work toward this. Tell them to set aside the money each month into an account where they will get the most return. If unsure what type of account best meets their savings needs, counsel them as much as you can or refer them to a financial advisor to find the best fit.

The new parent. Perhaps some of your clients are new parents. A huge saving opportunity may be to start putting away money for their child’s future education. If so, have them consider contributing to a 529 plan. These are great plans because the funds can be used for K-12 tuition, in addition to college costs. The plan allows them to choose between an array of different investment options, and offers tax-free earning growth as long as the funds are used to pay for qualified education expenses.

Be your clients’ trusted advisor

Whatever your clients’ savings goals are, advise them to set them early, and teach them how to find the best savings account types to meet each goal. Also, have them make sure to continuously track how much they are saving. Happy saving!

Brittany Westdyke, EA, is a senior tax analyst programmer for Intuit® ProConnect™. She attended the University of North Texas, and graduated with her bachelor's and master's degrees in accounting in 2011. Brittany has a strong desire to educate others on tax concepts and personal finances. She is originally from Oklahoma, but has called Texas home for many years with her husband of 10 years and four sons. More from Brittany Westdyke, EA

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