Posted: Oct 12, 2021 / 08:30 AM EDTUpdated: Oct 12, 2021 / 08:31 AM EDT
October 12th is National Savings Day. It’s a day to take a look at your finances and figure out away to stash some more cash away. But that’s easier said than done for millions of Americans. Certified Financial Planner Dan Hernandez joins the PHL17 news team with tips for both adults and kids.
Tips for simple ways to boost your savings:
Open a savings account and set auto-transfers. Many banks have auto-transfer options between checking and saving accounts. Schedule an automatic transfer from your checking to your savings account on your paydays. Then forget about it. Your savings account will grow faster than you expect. You can do this with an investment as well
Set savings goals and create a savings plan. Your savings goals should be specific, measurable and realistic. For example, you could set a goal of saving a certain amount of money each pay period or month or saving a certain percentage of your income, like 10 percent. Don’t be too aggressive with your savings goals — if they’re unrealistic, you might get discouraged and give up.
Utilize employer contributions. Many employers match contributions employees make to their retirement savings plans, like 401(k)s. If so, this is the closest thing you’ll ever find to “free money.”
Make saving a habit. By implementing strategies like these, saving money can become a habit. This is one of the best ways to help ensure a financially secure future and prevent an unexpected future crisis from wreaking havoc on your personal finances.
Tips for helping your children/family boost their savings:
Make it interactive. Get your children looking at statements, watching the market and/or watching the money accumulate. This helps instill an interest at any age.
Buy them a little stock. Online brokerage accounts make it easy and affordable to buy as little as $50 or $100 of a stock. They can follow on their phone, see the price go up and down, and start to learn a little about the market.
Pay allowance, but take a portion to savings where they can’t touch it as readily. Like with adults setting a portion of their income to auto-transfer into a savings account, personally set a portion of your child’s allowance aside and transfer to their savings account. Make sure your child is aware of the amount. This instills the habit for later on.
Serve as your child’s financial advisor. Educate your child on the importance of money, even if saving for a video game or other material item. Teaching this helps them build a better understanding of the value of money.