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WHY SAVE?

WHY SAVE?. Is your paycheck written in disappearing ink?. SAVING for FINANCIAL SECURITY. 1. Money in a bank cannot be lost because of misfortunes in the home. (Fire, theft) 2. Most financial institutions are protected by state and federal deposit insurance.

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WHY SAVE?

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  1. WHY SAVE? Is your paycheck written in disappearing ink?

  2. SAVING for FINANCIAL SECURITY • 1. Money in a bank cannot be lost because of misfortunes in the home. (Fire, theft) • 2. Most financial institutions are protected by state and federal deposit insurance. • (This protects savers from losing their money if the institution closes.)

  3. SAVE to GROW • INTEREST • Financial institutions pay interest in exchange for the use of your money while it is deposited. • Interest rates on savings vary according to the type of account chosen and the financial institution • They also vary according to the money in the economy (More money in economy= low interest rates!)

  4. 1. Save for the Unexpected • Your future WILL include some unexpected expenses. • ACCIDENTS HAPPEN! • What happens if you lose your job? Do you still have to pay? • EMERGENCY FUND!!! (At least 3 months worth of cash!)

  5. 2. Save for Opportunities • Opportunities to • TRAVEL • LARGE PURCHASES • VEHICLES

  6. 3. Save for Major Purchases • The REALLY expensive stuff! • HOUSES • CARS • BOATS • HOME REPAIRS

  7. 4. Save for Flexibility • Save to allow yourself to have a flexible lifestyle • Live in a “nicer” apartment • Quit your job, take pay cut at new job; have the opportunity for growth • (Ms. Soris & her student teaching experience.)

  8. 5. Save to Achieve Your Goals • The sooner you save, the better your chances are of achieving your goals! • COLLEGE • PURCHASING A HOME (Down Payment) • PURCHASING A CAR • Increase your savings goals: $100/month…$125/month….$150/month, etc!

  9. SAVING STRATEGIES Saving $$ can be a challenge!!

  10. 1. Pay yourself first! • Deposit money in your savings account when you pay your bills or cash your paycheck. • This way you are paying yourself while you pay your bills. • Consider it to be a REQUIRED payment. • If you don’t have the money on hand, you are less likely to spend it! 

  11. 2. Save by the Numbers • You might not be able to save the same amount every week. • If you have an uneven income, you should save a certain percentage of your take-home pay. • 10%-15%

  12. 3. Reward Yourself • Each time you reach a savings goal, give yourself a SMALL reward! • Something that doesn’t cost much!

  13. 4. Consider Your Values • Save for things that you are going to value greatly in the future! • Don’t spend part of your savings on impulse purchases!

  14. 5. Enroll in Automatic Saving • Through your employer or your financial institution • Payroll Deductions • Authorize a deduction of a specific amount from your paycheck to be deposited into your savings account. • Checking Account Transfers • You can authorize your bank to transfer a certain amount each month from your checking to your savings. **Don’t OVERDRAFT!

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