America Saves Week Encourages Saving
It’s America Saves Week! Each year we take this week to do a financial check-in with our community and focus on the importance of saving.
Each day of America Saves Week has a different theme. Take a look at all of the themes and if you need help creating a spending plan, are saving for homeownership or want to learn more about budgeting, contact our housing counseling team at housingcounseling@piedmonthousing.org.
Monday: Save Automatically
The two best ways to save automatically are:
- Split Deposit: Have your employer direct a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both). Traditionally, you can set this up using your employer’s direct deposit, ask your HR representative for more details, and set this up today.
- Automatic Bank Transfer: Every payday, your bank or credit union transfers a fixed amount from your checking account to a savings or investment account. Talk to your local bank or credit union to set this up.
Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest! Whether saving for an emergency fund, education expenses, retirement, or vacation, making saving automatic is the best way to reach your goal.
Tuesday: Save with a Plan
Savers who have a plan are twice as likely to save successfully. The plan – and sharing it with someone – holds you accountable for saving and allows you to save at a pace you’re comfortable with.
Wednesday: Save for the Unexpected
If you feel like you are unable to save for the unexpected, you’re not alone. If you have a savings account with at least $400 accessible, not only will the “unexpected” only be a minor inconvenience (or a mad dash to grab those concert tickets), but you will have more savings than approximately 60% of Americans.
Thursday: Save to Retire
Preparing for retirement can easily be pushed into the “someday” category, as we focus on present needs and expenses. In fact, very few Americans have a plan for retirement savings that is adequate for their desired standard of living after they retire. Today our focus is to encourage Americans to save today for tomorrow and discover just how much they need to save for the future.
Friday: Save by Reducing Debt
If you are currently working to reduce debt, you’re actually working on saving as well! When you actively reduce your debt, you save on interest. When you pay on time, you save on late fees and maintain your credit score – which will save money long-term.
Reducing debt should be acknowledged and celebrated as a form of saving and a component of your financial plan.
Saturday: Save As A Family
The best way to teach great money habits to our children is to model great money habits. While most Americans know the importance of making sound financial decisions, many feel that money management wasn’t taught to them at a young age.