Young adults building wealth, Milwaukee group launches network

MILWAUKEE - A Milwaukee group says people are neglecting one very important component of their finances: "Building wealth" should really be the focus over managing money.

22-year-old buys home

What they're saying:

When Miguel Aviles got the keys to his Milwaukee home, it was a dream come true. He saved up and improved his credit to purchase his home when he was just 22 years old.

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"I wanted to be the first homeowner in my family – so very early on, that was the main goal," Aviles said, adding that he has an 823 credit score.

Aviles' planning and determination started his junior year at Messmer High School. A group came into his financial literacy class and changed the way he thinks about money. FOX6 Cents has profiled SecureFutures before. Aviles was part of their Money Coach program.

"It was just a lot about not setting small goals that I thought I could reach. It was about setting goals that I thought were ridiculous. The higher you aim, the better odds you have of landing somewhere there," Aviles said.

"It’s impactful because we’ve been doing work in this community and throughout this entire state for the last 20 years," said Robert LaGrant, SecureFutures board president.

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After Aviles got his house, he aimed for his next big purchase: he always wanted a GMC Sierra, and today he owns one. Aviles said it would not have been possible without a little guidance along the way. Now he is looking to pay it forward.

Lemoine: "Did you think five years ago you’d be talking about credit scores, home loans and interest rates?"
Aviles: "No. It definitely – I didn’t know what I wanted to do but I’d hoped that I’d have enough wisdom to pass it along to others."

Program milestone

Local perspective:

In August, SecureFutures celebrated a milestone anniversary that was recognized by the City of Milwaukee proclamation. Newly elected board president Robert LaGrant said the group has helped more than 4,000 students through its Money Coach program alone, which pairs kids with financial mentors. Now, SecureFutures is taking the program one step further by establishing the Money Coach Alumni Network. It creates a bridge for kids who just graduated high school and helps them as they enter adulthood.

"They are quote-unquote officially adults, but they have everything coming at them. How do we help to differentiate between the good information, and that they can use in practical terms and be able to weed out some of those predatory things that go on?" LaGrant said.

Goals for building wealth

Why you should care:

LaGrant worries about things like signing up for multiple credit cards or high-interest loans. But he said a big focus is helping young adults like Aviles understand the importance of building wealth rather than just managing money.

"The building wealth, that comes in a lot of shapes and formats – that talks about different streams of income and talks about the opportunity of amassing not only from an investment point of view, like stocks, but also the home," LaGrant said.

"My goal isn’t to have a lot of money so I can have a lot of stuff. It’s to have – be in a position to help others. That’s what I think wealth means. You’re able to pass this down generationally and help others around the community and wherever you decide to reach out to," Aviles said.

Homes and retirement

What we know:

Buying a home is generally a good long-term investment. The Wisconsin Bankers Association reports the average price appreciation for a home in Wisconsin increased between 4.8% and 5.6% last year.

"After I purchased the home, I kind of started focusing on those other things – one was my Roth IRA that my coach insisted was the first thing I do because of compound interest," Aviles said.

LaGrant said a Roth IRA is another great way to build wealth. It is a retirement savings account where a person funds it with taxed dollars and can withdraw tax-free.

"So, having that opportunity to really amass wealth – if I put $10 in, and it turns into $20, the $10 in growth coming out tax free – that’s a great way to be able to build wealth," LaGrant said.

Questions for young adults

What you can do:

SecureFutures says people should ask young people in their life these questions:

• Are you leaving free money on the table? Make sure if an employer offers a 401(k) or other retirement plan match, it is understood and taken advantage of.
• Do you know how to get started investing? Start with a small amount and learn along the way. Do not forget there is something valuable on your side – time!
• What are you building toward? What are the goals, and is enough being saved toward that goal?

Portions of this article were formatted using A.I. FOX6’s Bret Lemoine and an editor reviewed it for accuracy and tone prior to publishing.