Is your paycheck written in disappearing ink? 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. (This protects savers from losing their money if the institution closes.)

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!)

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!)

2. Save for Opportunities Opportunities to TRAVEL LARGE PURCHASES VEHICLES

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

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.)

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!

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

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! 

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%

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

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!

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!