Website helps 20-somethings nourish their finances

When it comes to managing money, there’s no lack of advice online, whether it’s figuring out a budget or calculating your retirement plan.

But for 20-somethings? Not so much.

And that’s the concept behind YoBucko.com, a new personal finance website aimed squarely at those in their 20s.

It’s the brainchild of Eric Bell, a 28-year-old Washington, D.C., entrepreneur who sees a void in personal-finance guidance for his generation.

While in college, Bell started money-management workshops at four universities in his native Arkansas.

After graduating in 2006, he spent four years in the private banking division of Citigroup.

Now finishing an masters of business administration program at Georgetown University, he just finished two years as president of the Greater Washington, D.C., Jumpstart Coalition, a national nonprofit that promotes financial literacy in schools.

It all led to November, when he founded YoBucko, which offers advice to 20-somethings on budgets, debt, savings, insurance and more.

Here’s take on his generation’s attitudes on work, taking risks and the recession’s impact:

Q: Why focus on 20-somethings?

A: I focus on 20-year-olds and up because I am one. I understand the challenges they’re facing. I’m trying to get in front of problems and (help prevent) a lot of what we’ve seen with credit card debt, bad mortgages, etc.

Q: Student loan debt is estimated to hit $1 trillion this year and take decades to repay. What’s your advice on student loans? And how are you tackling your own debt?

A: Tuition and the rising cost of education is the downfall of our generation. (Students) should think long and hard about why they’re going back to school.

If you’re trying to switch careers or add to your current job skills, there can be a payoff.

If you’re just going because you don’t know what you want to do, it may not be the best investment.

I’ve already paid off a chunk of my loans, the higher-interest rate loans first. I’m looking at my repayment options: lowering interest rates, consolidating loans, income-based repayment plans.

Q: For your generation, what are the lasting lessons of the recession?

A: There are three major takeaways:

•Bad things happen to good people. The recession … instilled a little fear in our generation. The recession (gave) us a wake-up call and helped us realize that we need to protect ourselves by saving for a rainy day, living below our means and hedging our bets.

Don’t put all your eggs in one basket. People now see how being too concentrated in one asset — whether it’s real estate, stocks, cash or 401(k) plans — is a risky proposition. The concept of diversification makes more sense to our generation now than it did before.

Be skeptical. While there are a lot of great people in the financial services industry, a few bad apples caused a ton of financial problems globally. For our generation, it translates into being skeptical of individuals and companies that sell financial products and services.

Q: Part of the “wake-up call” is setting aside some savings. How do people do that?

A: People talk a good game about saving. But it’s like you know you’re not supposed to eat sausage, biscuits and gravy, but you do until you have a heart attack. Look at your 401(k). Set up direct deposit. Create a budget so you have a snapshot of your money and where it goes each month.

Q: According to a recent Pew Research Center study of 18- to 34-year-olds, the ragged economy forced 24 percent to move back in with parents, 20 percent to postpone marriage and 22 percent to postpone having kids. Nearly half said they took a job they didn’t like just to pay the bills. How else did the recession change your generation?

A: It’s forced us to curb our expectations. That dream home at age 35 isn’t likely. With careers, you have to have a backup plan. Our sense of loyalty (to a company) is gone because many of us got laid off.

Parents are having to admit they can’t pay for college or they don’t have the money for retirement. Many more of us are now cynics.

12 ways to save

1. Set up direct deposit. Put a fixed amount of your monthly paycheck into a savings or investment account.

2. Contribute to your employer’s 401(k).

3. Cook dinner at home; take a lunch to work.

4. Compare insurance rates. Shop around for lower premiums.

5. Procrastinate before making impulse purchases.

6. Create a budget and stick to it.

7. Make breakfast. “I used to spend $6 every morning for breakfast. By making my own bagel and coffee at home, I’ll save close to $80 per month.”

8. Quit smoking.

9. Stay out of bars.

10. Stop paying bank fees. Look at your bank statements to see if you are overpaying for basic banking services.”