This week we're celebrating America Saves Week. It is an annual national campaign that encourages individuals and families to check-in on their finances by highlighting several key areas that contribute to financial stability; such as saving automatically, preparing for unexpected expenses, retirement, and reducing debt. Together with America Saves Week, we are focusing on Building Financial Resilience through the following daily themes.
Monday: Save Automatically
What is the easiest and most effective way to save – to save Automatically. The two best ways to save automatically are to split your direct deposit or have your financial institution automatically transfer a predetermined amount from your checking to savings. By saving automatically you’ll adopt a “set it and forget it” approach that increases your success. Another easy option is to sign up for aChange Maker account. Each time you use your Scient debit card to make a purchase the transaction will be rounded to the nearest dollar and the change will be transferred to the account. And remember, savings is a HABIT, not a destination.
Tuesday: Save For The Unexpected
While saving for emergencies is always a much discussed topic in personal finances, here’s something that’s not as widely discussed: saving for opportunities.
If you are in the position to save, you’re not only saving for an unexpected car repair, medical bill, or appliance breaking down — you’re also saving for the last minute dinner invite with friends and family, the concert for your favorite artist, or the ability to grab a birthday gift for your child’s classmate.
Today we want you to consider reframing saving for the “dreaded emergency,” and recognize that you’re also saving for fun and positive opportunities! Doesn’t it feel better to contribute to an OPPORTUNITY FUND vs. an EMERGENCY FUND?
Wednesday: Save To Retire
Fast forward to one year into your retirement. What does life look like? Do you live in the town you’re in now, or have you moved to a different location? Do you spend your days relaxing at home, working part time to keep busy, volunteering, or traveling?
It’s important for you to determine your retirement lifestyle, so that you can save for the retirement you want. Many Americans, especially those who make a low to moderate income, share a similar sentiment that present competing financial priorities make it difficult to save for the future. To that we say, YOUR FUTURE SELF WILL THANK YOU!
Thursday: Save By Reducing Debt
Do you consider paying down your debt as saving? You should! There are many natural benefits of reducing your debt, including increasing your credit score, saving money on interest and fees, and gaining more disposable or discretionary income to allocate as you see fit. With so many Americans still being affected financially by the pandemic, actively paying down your debt may not be a priority— and that’s okay. One thing you can do is to talk to your creditors (rather than avoid them) and take advantage of any repayment options or arrangements offered. This allows you to keep your credit score intact and avoid additional interest and late payment fees.
Friday: Save As A Family!
In the past, talking about money has largely been a taboo subject. What we can now conclude is that avoiding such a crucial topic does not benefit young adults, and poor finance skills can follow you throughout your life. The earlier you start age appropriate conversations and instill a positive savings mindset, the better financially stable your family will be. Having money conversations can be as simple as finding ways to save together, as a family. As we round out America Saves Week, we want you to spend time thinking about how you can encourage the young people in your life to #ThinkLikeASaver. After all, savings can be both tangible (like saving in a piggy bank) and intangible (like preserving energy by turning off the lights).
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