Saving

Saving refers to setting aside a portion of your income for future use. Saving money helps you build financial stability and security because these funds can be used for emergencies, major purchases, and long-term goals like retirement. While people generally only think about saving for emergencies and the future, it’s important to consider that paying off debt is also saving because paying interest to creditors adds up and reduces your purchasing power.

Here are some key points to consider when thinking about saving:

  1. Start small: You don't have to save a lot at once. Start with what you can and gradually increase as you get comfortable. Check out the NCUA’s Money Basics Guide to Saving and Budgeting to help you get started.
  2. Make it automatic: Set up an automatic transfer from your checking to your savings account so you don't have to think about it. Paying yourself first is a great way to prioritize your goals. You’re worth it! Did you know that using direct deposit is not only the best and fastest way to get your paycheck and tax refund, but also an easy way to save money?
  3. Have a goal: Decide what you're saving for, whether it's getting out of debt, a down payment for a house or car, or an emergency fund. Setting financial goals will help motivate you to save more.
  4. Shop around: Look for the best interest rates and fees when choosing a savings account. Higher interest rates mean your money will grow faster. The NCUA’s Money Basics Guide to Savings and Checking Accounts can help.
  5. Protect your savings: Keep your savings in an insured account at a credit union or other financial institution. Learn more about how your money is protected in a credit union.
  6. Keep it liquid: It's important to keep some of your savings in an easily accessible account, like a savings account, so you can access it quickly in an emergency.

By following these tips, you can build a healthy savings habit and reach your financial goals. Find a credit union near you to learn more about the financial products and services they provide.

Saving for Yesterday, Today, and Tomorrow

  • Saving for Yesterday

    Saving for Yesterday refers to covering your expenses from the past, such as paying off debt or catching up on bills. It can be difficult for many families to keep up with expenses and make ends meet. Before taking out a high-cost payday loan, consider alternatives. For instance, consider talking with your creditors to negotiate more time to pay bills. Contact your state or local government to see if any emergency assistance programs are available. If you have an account at a credit union or bank, ask about less expensive alternatives available to you, especially if you have direct deposit or a stable credit history.

    • Payday Alternative Loans. Ask your local credit union about Payday Alternative Loans (PALs). This might be just what you need to get back on your feet.
    • Reduce your debt. Need some guidance on reducing your debt? Most people do. Getting into debt is easy but getting out of debt requires focus and commitment. Follow these tips to get a handle on your debt and take control of it.
    • Credit counseling. You may need to consider credit counseling or other debt relief services.

  • Saving for Today

    Saving for Today means setting aside money for your current needs and expenses, such as food, housing, transportation, and other necessities. Developing a budget can feel scary for many consumers. It requires you to be proactive about your financial situation and for many people, it can be hard to face. But having a budget is crucial to managing your money, staying out of debt, and ultimately building wealth. More than anything, budgeting helps you to keep track of what money is coming in and what money is going out of your pocket—also known as your income and expenses. Use this NCUA Money Basics Guide to Budgeting and Saving to help you get started.

    • Emergency Fund. A solid emergency fund is perhaps one of the most important tools to build and sustain financial security. You’ve probably heard the expression “save for a rainy day” and you have also probably been faced with a financial “rainy day”. We’re all presented with unexpected financial challenges like car repairs, medical bills, or higher than usual high utility bills. According to a 2022 Federal Reserve report, 3 in 10 adults said they would be unable to cover an emergency expense of only $400. While saving is not always easy, especially for the millions of Americans living below the poverty line, an emergency fund can make all the difference when you’re faced with unexpected bills.
    • Follow the six tips listed above to build a healthy savings habit and reach your financial goals. Start by visiting a local credit union to open a savings account and make your savings automatic!

  • Saving for Tomorrow

    Saving for Tomorrow refers to planning for your future, long-term financial goals, such as retirement, funding your child’s college education., or starting a business. Saving for long term goals is often referred to as investing. Investing is the act of putting money into financial instruments like stocks, bonds, mutual funds, or real estate with the goal of growing wealth over time.

    • Introduction to Investing: Many people just like you turn to the markets to help buy a home, send children to college, or build a retirement nest egg. But unlike the credit union and banking world, where deposits are guaranteed by share insurance and federal deposit insurance, the value of stocks, bonds, and other securities fluctuates with market conditions. No one can guarantee that you’ll make money from your investments, and they may lose value. The U.S. Securities and Exchange Commission (SEC) enforces the laws on how investments are offered and sold to you. Protecting investors is an important part of the SEC mission. They cannot tell you what investments to make, but their website provides unbiased information to help you evaluate your choices and protect yourself against fraud.
    • Savings Goal Calculator: Calculate how much money you need to contribute each month in order to arrive at a specific savings goal.
    • Compound Interest Calculator: See how much your money can grow using the power of compound interest.
    • Saving for a Home. Thinking of Buying a Home? Finding a home is an exciting experience, but it can be long and challenging. Knowing what to expect will help you make solid decisions about the type of home you choose.
    • Saving for College: Planning pays off. Do your homework up front to understand all the costs associated with postsecondary education. The skyrocketing costs of higher education can lead you to wonder if the education investment still makes sense. Whether you are a parent, guardian or a student, being informed can help you make good financial decisions and smart investments in your or your children’s postsecondary education studies.

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