Finance
I opened two accounts to help grow my savings. Here's what I learned as a Gen Z personal finance reporter
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Klaus Vedfelt | Digitalvision | Getty Images
‘The Roth IRA is an incredible savings vehicle’
Roth individual retirement accounts require investors to pay taxes on the contributions they make now, rather than when they take withdrawals in their retirement years. That trade-off means after-tax dollars grow tax-free for decades.
A Roth can be a powerful tool for younger investors, who are often starting out their careers with lower salaries, putting them in lower tax brackets. And in all likelihood, they are in lower tax brackets than they’ll be later in their careers.
“For younger professionals, the Roth IRA is an incredible savings vehicle, because given our earnings, it’s very likely that we’re not being taxed at the highest rate,” said Clifford Cornell, a certified financial planner and associate financial advisor at Bone Fide Wealth in New York.
Roth IRAs also tend to be great for younger savers because there are income limits on eligibility for single and married filers, he said.
Original contributions to a Roth IRA can be withdrawn at any time without penalties, serving as a great tool for long-term goals or short-term emergencies. However, there are penalties involved if you withdraw earnings from the account too early.
Here are three more key strategies I learned or was reminded of as I prepared to open a Roth IRA:
1. Investors can make prior year contributions before tax season ends: You have until the end of tax season, or April 15 this year, to save money in your Roth IRA that will count toward the prior tax year, experts say.
“If you’re between January [1] and April 15, you can technically make both a 2023 contribution and a 2024 contribution,” said CFP Tommy Lucas, an enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.
2. While you can’t get a deduction, you may qualify for a credit: Unlike a traditional IRA, you can’t get a tax deduction from Roth contributions. Yet, there is a perk that gets overlooked a lot, said Lucas: Roth savings count toward the so-called Saver’s Credit, which is available to low- and moderate-income taxpayers.
“Depending on your income level, it can go as high as for every $2 you put in, you get $1 back,” he said. “To be able to put money tax free and essentially get some sort of matching contribution from the IRS is actually really nice.”
3. Remember to invest the money: This point was more of a self-reminder for me, especially after I saw my initial deposit linger in cash in my account for 24 hours. In order to make your money grow, it’s not enough to merely fund the account; you have to invest the money. (Not doing so is actually a common mistake.)
“The Roth IRA is kind of like a label on the account; it still must be invested,” Cornell said.
While there’s a plethora of investment products to choose from, ask yourself two important questions: “How hands-on do you want to be? What’s your risk tolerance?” Cornell said.
Younger investors are able to be more aggressive with their investments because these are savings they won’t, ideally, use for two or three decades, Lucas explained.
“Investing in a diversified way is what yields results over the long term,” he said.
Investors can either build their portfolios themselves or delegate the decision-making process to an account manager or robo-advisors. From there, you can decide how you want your post-tax dollars to grow over time.
What I learned about high-yield savings accounts
About 56% of adult Gen Zers, or ages 18 to 26, did not have enough savings aside to cover three months of expenses, according to Bank of America, which conducted the survey in August.
Reading these reports sometimes feels like I’m looking into a mirror, or even the renowned line from Taylor Swift’s song “Anti-Hero”: “It’s me, hi. I’m the problem, it’s me.”
To address the issue, I opted for a high-yield savings account. While you are typically limited to a certain amount of penalty-free withdrawals per month, these accounts can be an ideal nest for both emergency funds and sinking funds, or money saved for bigger goals such as homeownership.
Here are two things to know about opening an account like this:
1. Compound interest does not make money appear overnight: When it comes to compound interest, it will depend on the bank or financial institution you choose to work with. But usually, the 5% interest is an annual rate, not monthly, said Lucas.
For example, if you put in $10,000 into an account that earns a 5% APY, you could earn $500 worth of interest, said Lucas.
“So it’s not $500 a month, it’s $500 for the year â and that’s assuming that the interest rate doesn’t change with the high yield savings account,” he said.
2. The IRS wants a piece: The tax man considers money earned from compound interest as an income. Any time you make over $10 in interest income, the bank will notify the IRS, which will send you a 1099-INT form, said Lucas. Even if you earn less than that, you’re supposed to report it on your taxes.
“The IRS knows you made $500 on that interest, you need to pay tax on it,” Lucas said.
Even so, “that is a lot better versus a checking account making half a percent,” he added.
The FTSE 100 (^FTSE) was hovering around the flatline on Friday, while European stocks headed lower, as traders shrugged off Donald Trump’s latest pause on striking Iran’s energy infrastructure.
On Thursday night, the US president extended the deadline for Iran to open the strait of Hormuz by 10 days, meaning the new date would be 6 April. He claimed that talks were “going very well”. However, Iran denied it was “begging to make a deal”, despite Trump’s earlier claims.
It comes after Wall Street posted its biggest daily loss since the Iran war began on Thursday.
The Wall Street Journal also reported on Thursday that the US was considering sending as many as 10,000 additional troops to the Middle East.
Tony Sycamore, market analyst at IG, said Trump has extended the uncertainty gripping markets.
“While the rhetoric around de-escalation and dialogue is certainly preferable to outright conflict, the market appears to be growing increasingly numb to President Trump’s verbal reassurances. By extending the deadline, it effectively kicks the can down the road, pushing back any concrete resolution regarding the reopening of the Strait of Hormuz. This, in turn, simply extends the uncertainty weighing on markets and the broader global economy.”
Elsewhere, UK retail sales dipped by 0.4% in February, following a rise of 2.0% in January, the Office for National Statistics revealed. In the December to February quarter, sales volumes were up 0.7% compared with the previous three months.
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London’s benchmark index (^FTSE) was hovering around the flatline in early trade
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Germany’s DAX (^GDAXI) dipped 0.5% and the CAC (^FCHI) in Paris headed 0.2% into the red
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The pan-European STOXX 600 (^STOXX) was down 0.3%
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Wall Street is set for a muted start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all lacklustre.
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The pound was 0.1% down against the US dollar (GBPUSD=X) at 1.3311
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FARGO, N.D. – North Dakota State University’s College of Business has launched the Center for Banking and Finance, a new academic and industry‑engaged hub designed to prepare students for careers in banking and finance while supporting the evolving workforce needs of the region’s financial industry, a release states.
Announced during a press conference at NDSU’s Louise Auditorium at Barry Hall, the center brings together students, faculty and industry partners to expand experiential learning opportunities, strengthen connections to employers, and address emerging trends shaping the financial services industry. The center is housed within NDSU’s College of Business and builds on growing student interest in finance‑related programs.
“The Center for Banking and Finance reflects NDSU’s responsibility as a student‑focused, land‑grant, research university to respond to workforce and economic needs across our state and region,” said Interim President Rick Berg. “By connecting education, industry, and community, this center helps ensure our graduates are prepared to contribute on day one and throughout their careers.”
The center will support undergraduate and graduate students through hands‑on learning experiences, exposure to financial tools and technologies, and direct engagement with financial institutions, regulators and business leaders. It will also serve professionals already working in banking and finance through workshops, training and research‑informed programming aligned with business needs, according to the release.
“The Center for Banking and Finance is about momentum — students who are eager to learn, faculty who are pushing applied scholarship forward, and industry partners who want to shape the future workforce,” said Kathryn Birkeland, Ronald and Kaye Olson dean of the NDSU College of Business. “When education and industry move together, everyone benefits.”
The launch of the Center for Banking and Finance coincides with a series of regional events focused on finance, fintech and economic outlook, including programming with the Bank of North Dakota, the Federal Reserve Bank of Minneapolis and regional business leaders. Together, these events underscore the Fargo‑Moorhead area’s role as a hub for financial dialogue, talent development and economic collaboration.
The center’s foundational banking partners include Dacotah Bank, Gate City Bank, Bell Bank and Western State Bank, who attended the launch and are helping shape early student experiences and industry-informed programming.
The center is led by Mark Jensen, a career banker and longtime adjunct instructor who joined NDSU full-time in 2026 as director of the Center for Banking and Finance.
“The Center for Banking and Finance is designed as a bridge,” Jensen said. “It brings industry into the learning experience in meaningful ways, and it gives students clearer pathways into a wide range of banking and finance careers.”
For students, the center represents a more direct bridge between academic study and professional opportunity.
“As a finance student, experiences outside the classroom make a real difference,” said Tavian Nelson, a senior at NDSU majoring in finance. “Going into college, I knew I wanted to be involved in the finance program but was unsure of what that would look like once I graduated. The school has truly shaped my desired career outcomes with many hands-on experiences, professional leaders, and connections throughout my time here. This center will truly strengthen these experiences for students.”
Initially, the center will focus on experiential learning opportunities, business partnerships and workforce‑aligned programming, with plans to expand offerings as partnerships and resources grow. The center is supported through external funding and business engagement.
FRANKFURT, March 26 (Reuters) – Euro zone banks have limited direct exposure to the war in the Middle East, but the conflict could still generate systemic stress given interconnected vulnerabilities, European Central Bank Vice President Luis de Guindos said on Thursday.
Financial markets have come under stress in recent weeks from the impact of the U.S. and Israeli war on Iran, but the selloff outside the Middle East has been limited, even as some assets remain overvalued.
“Spillovers to the euro area financial sector have so far remained contained,” de Guindos said in a speech. “Direct bank exposures to the region are limited, and the banking system is well positioned with strong profitability and robust capital and liquidity buffers.”
De Guindos argued that even market infrastructure operators, like central counterparties whose services include energy markets, have managed margin requirements effectively, despite the volatility.
Still, there was a broader risk, given interconnections in the financial system, said de Guindos, whose roles at the ECB include monitoring financial stability.
“Amid already elevated global uncertainty, this conflict could trigger the unravelling of interconnected vulnerabilities and cause systemic stress,” he said.
The conflict threatens to derail market sentiment at a time when asset valuations are high, potentially leading to a sharp repricing of risk for leveraged borrowers and sovereigns while amplifying stress in the non-bank financial sector, he said.
On the ECB’s core mandate of ensuring low inflation, de Guindos repeated the bank’s warning that inflation could rise and growth slow on the conflict but argued more time was needed to understand the full impact.
“We are unwavering in our commitment to ensuring that inflation stabilises at our 2% target in the medium term,” he said.
(Reporting by Balazs Koranyi; Editing by Toby Chopra)
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