Savings account: do you need it? – Franklin County Weather
Do you have a savings account? If your answer is no, consider setting up a savings account to use in an emergency. You will not regret it!
Opening a savings account can be beneficial. It can cover unforeseen expenses that could arise as a financial blow.
When there is no savings, an individual is forced to borrow money and pay high interest. The interest you pay could be money you save.
It will take time, dedication and discipline to create a savings account. This means that you need to focus on depositing money into the savings account rather than unnecessary withdrawals.
In order for your money to grow, you need to make regular deposits into the account. Remember that time plus consistency equals growth.
Having a savings account could be the biggest difference between those who manage to stay out of the water and those who drown financially. Keeping savings – as little as $ 500 – lets you take on unexpected financial challenges, such as paying a prescription or copayment, replacing a car battery, or fixing a plumbing problem.
Saving can be a challenge in today’s economy due to COVID-19.
Some people are unemployed because of business closures. The working hours of others have been reduced. Many are retraining for a new job all together.
If you have financial barriers that prevent you from saving, start small and save some small change. Then work to save 1% of your salary until you reach 10% savings on your salary.
Find out what types of employer-sponsored retirement savings plans are available to you. If there is a corresponding retirement program, participate. It’s free extra money.
You might need at least $ 100 to open a savings account, but some banks and credit unions may have special programs for young people and seniors who require less. Make sure you know if there is a minimum balance to avoid monthly fees.
Banks and credit unions may waive minimums if you have other accounts at this institution. It will also help you save money by not paying these fees.
Saving money can be a project for the whole family. Challenge your kids to save for the next item they want you to buy. You will be amazed!
Patricia W. Smith works with the Alabama Cooperative Extension System serving Northwest Alabama as a regional agent in financial resource management and workforce development. She can be reached at 256-710-7702 or [email protected], or learn more at www.aces.edu.