So you figured out which classes you need to take, the best places to check out on and off campus and even figured out how to make some extra money for those “necessities." The only thing left now is …
Saving money is an important part of a healthy financial future.
Life isn't predictable, and knowing that you have cash on hand for emergencies, education and even the down payment for a home or car can be both comforting and vital during economic shifts.
Additionally, you can play an important part in teaching your children or grandchildren about saving for a rainy day by helping them open their own savings accounts.
Small minimums, big convenience. The great thing about opening a savings account is that, while the interest you earn may currently be low, the minimum balance is small. Plus, it's convenient. You can make deposits and withdrawals at your local bank, or enroll in online banking and make transactions with the click of a mouse. You can monitor your account 24/7 and download your savings account statement too.
Protected and FDIC insured. Depositing money into a savings account is safer than socking it away in your mattress. Should a burglar ever enter your home, at least he won't leave with cash in his pocket. Plus, you can monitor your account anytime, especially if you choose online banking. Also, you'll have peace of mind that the Federal Deposit Insurance Corporation (FDIC) insures your savings account up to at least $250,000.
Large purchases. Saving money for a new car or a cozy home is part of the American dream. Contributing regularly to a savings account is the beginning of achieving the things you want in life. Once you've accumulated enough money, you can graduate a portion to higher-yielding interest-bearing accounts, such as Certificates of Deposit (CDs), money market accounts or mutual funds*. Just beware that with some funds, you can't access your cash immediately, as you can with savings accounts.
Higher education. A savings account is a great way to have your child or grandchild begin putting money away for college or trade school. This money can also be used for textbooks, meals, dorm furniture and other costs associated with school. Alternatively, you might choose to set up a "529" plan for your child's higher education, which offers tax benefits.
Money for emergencies. Setting aside money for an unexpected transmission rebuild or a speeding ticket ensures that you can pay for emergencies without going into debt. A traditional savings account can bring you peace of mind when things get rocky. Many financial experts recommend having at least six months' worth of savings for emergencies, while others recommend nine to 12 months' worth.
Having a savings account in place can help you stick to your household's budget more easily.
You'll not only be saving money for the future, you'll be more judicious about how you spend your cash, which is a great lesson for youngsters to learn too.
Sticking to your savings plan can help you meet your financial goals. Talk to us about savings products and services for the entire family.
Source: American Heritage Bank
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