There are many ways to save, different amounts to save and better ways to save, but no bad ways to save. Jack Galle, president of First National Bank in Pratt, passed along this advice that was given to him, along with an acknowledgment that sometimes people need a reminder of how important it is to have a financial cushion.
The week of Feb. 21-28 is Kansas Saves Week, in partnership with the America Saves campaign.
Many experts recommend saving enough to cover living expenses for three to six months — especially valuable with the uncertainty of today’s economic times, but always a factor in making better financial decisions.
Even small savings add up.
“People get caught up in the idea it has to be a big amount,” Galle said, adding that in his career he has seen people who don’t make large incomes but still accumulate a reasonable amount of savings.
“We’ve all heard stories about people who work in low-paying jobs who accumulate great savings and step forward to fund a civic improvement or other need,” said Carol Young, a financial management specialist for Kansas State University Research and Extension, one of the partners in Kansas Saves Week. “Their success at savings suggests that there is truth to the philosophy that how you manage your money, rather than how much you have to start with, can be a key in building financial security and freedom from financial stress.”
“Time is the biggest ally in savings,” Galle noted, encouraging parents to help their children develop the habit of saving something back. Many financial institutions have special savings programs that give kids rewards and incentives, such as First National’s Piggybank Savings that awards a meal coupon when children open an account and more coupons for every $50 contributed.
Young offered some tips to build savings:
• Pay yourself first. Treat savings like another bill by setting up automatic monthly transfers from checking to a savings account.
• When considering the capacity to save, consider the amount of money currently going to credit card payments. Paying off credit card debit and then redirecting the equivalent of the payments into a savings account can be a good way to begin saving.
• Earmark savings for an emergency fund to have money available for unexpected car repairs, medical expenses, etc. Getting started with $500 to $1,000 is a good beginning goal, and saving the equivalent of six months salary is recommended as an ideal long-term goal.
• Set aside some discretionary money (as an allowance) for every member of the family, but allow children some latitude in how they spend it. Children who learn from spending mistakes early in life can be less likely to make similar mistakes (with more at stake) later in life.
• Plan how to use a tax refund to your benefit. Designating a tax refund for direct deposit into a savings account gives a taxpayer time to decide whether to use refund dollars to pay off debt, jumpstart an emergency fund and/or fund short- or long-term goals.
• Look for ways to save every day — and do it.
• Take advantage of employer’s savings plans, tax-deductible retirement savings opportunities and matching funds, if available.
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There are many ways to save, different amounts to save and better ways to save, but no bad ways to save. Jack Galle, president of First National Bank in Pratt, passed along this advice that was given to him, along with an acknowledgment that sometimes people need a reminder of how important it is to have a financial cushion.
The week of Feb. 21-28 is Kansas Saves Week, in partnership with the America Saves campaign.
Many experts recommend saving enough to cover living expenses for three to six months — especially valuable with the uncertainty of today’s economic times, but always a factor in making better financial decisions.
Even small savings add up.
“People get caught up in the idea it has to be a big amount,” Galle said, adding that in his career he has seen people who don’t make large incomes but still accumulate a reasonable amount of savings.
“We’ve all heard stories about people who work in low-paying jobs who accumulate great savings and step forward to fund a civic improvement or other need,” said Carol Young, a financial management specialist for Kansas State University Research and Extension, one of the partners in Kansas Saves Week. “Their success at savings suggests that there is truth to the philosophy that how you manage your money, rather than how much you have to start with, can be a key in building financial security and freedom from financial stress.”
“Time is the biggest ally in savings,” Galle noted, encouraging parents to help their children develop the habit of saving something back. Many financial institutions have special savings programs that give kids rewards and incentives, such as First National’s Piggybank Savings that awards a meal coupon when children open an account and more coupons for every $50 contributed.
Young offered some tips to build savings:
• Pay yourself first. Treat savings like another bill by setting up automatic monthly transfers from checking to a savings account.
• When considering the capacity to save, consider the amount of money currently going to credit card payments. Paying off credit card debit and then redirecting the equivalent of the payments into a savings account can be a good way to begin saving.
• Earmark savings for an emergency fund to have money available for unexpected car repairs, medical expenses, etc. Getting started with $500 to $1,000 is a good beginning goal, and saving the equivalent of six months salary is recommended as an ideal long-term goal.
• Set aside some discretionary money (as an allowance) for every member of the family, but allow children some latitude in how they spend it. Children who learn from spending mistakes early in life can be less likely to make similar mistakes (with more at stake) later in life.
• Plan how to use a tax refund to your benefit. Designating a tax refund for direct deposit into a savings account gives a taxpayer time to decide whether to use refund dollars to pay off debt, jumpstart an emergency fund and/or fund short- or long-term goals.
• Look for ways to save every day — and do it.
• Take advantage of employer’s savings plans, tax-deductible retirement savings opportunities and matching funds, if available.
