TOPCU is proud to support America Saves Week
AMERICA SAVES WEEK
FEBRUARY 27 – MARCH 3, 2023
America Saves Week is a national effort to set a savings goal, make a savings plan, and save automatically. Tucson Old Pueblo Credit Union is proud to be a participating credit union, and we invite you to join millions of others who are taking time this week to start or grow their savings.
America Saves will keep you motivated with information, tips, and reminders to help you reach your savings goal and we’re here to help every step of the way!.
SAVING AT ANY AGE
Saving. Do you view it as an ongoing journey? Or do you consider saving as someplace you arrive at? At America Saves we are in the camp that saving is a habit, not a destination. And it’s a habit that can be formed at any age. Whether you are a parent trying to instill this habit in your children or you want to change your own saving behaviors, there are strategies that savers of all ages can develop.
Research tells us that children’s money habits are often formed by age seven so starting early to teach them about saving can have a huge impact. Many parents are accustomed to hearing frequent requests from their children about a toy, game, or piece of clothing that they “just have to have.” Sound familiar? Using these wants is a great way to help children learn to save.
Children can learn to set a saving goal and figure out how long it will take to save enough money for their goal. Create a fun system to track progress, provide regular encouragement, and use incentives such as matching funds. Talk about how it feels to see your money grow. And don’t forget to lead by example – show children how you are saving.
You can also give children the opportunity to make some decisions about their money. Empowering children from a young age to make choices about money they earn or receive as gifts is a great way to build that confidence.
For young adults, as they begin to earn a regular and potentially higher income, a strong foundation begins with basic understanding of the difference between needs and wants. The America Saves Spending and Saving Tool is an easy-to-use resource that provides a clear view of your finances and can be insightful in identifying essential and discretionary spending. The system of automatic saving, especially through paychecks with split deposit, can set young adults on the path to a lifelong saving habit.
It can be hard to stay motivated when setting aside money for something in the future no matter what your age. It’s easy to focus on what you want in the moment — we don’t want to wait to purchase that expensive pair of sneakers. We want to take a trip in the next three months. Retirement is so far off that it feels OK to spend more of your current income right now and catch up later. In each of these scenarios, we aren’t thinking about our future selves, just who we are and what we want today.
Thinking of our future self – what we will want, what we will be doing, what we will believe – is one way we can develop a saving mindset. Asking questions about our future selves helps us create a vision for our future. For example, consider:
- Where does your future self live?
- What does a typical day look like for your future?
- What hobbies does your future self enjoy?
- How much money does your future self earn?
Later go back and read your answers to see how they compare to the present. Having the ability to look ahead, even if it’s a short time in the future, is a great way to reinforce saving today for tomorrow. This exercise can be done at any age, even with children.
Journeys can take us on many different paths and saving journeys are no different. So stay with America Saves as you and your family embark on a new journey or resume one that encountered a detour. It’s never too late to #ThinkLikeASaver.
America Saves has a number of resources that can help you get started saving automatically:
- The Spending and Saving Tool to help you get a clear view of your finances and determine a realistic amount you can save regularly
- ThinkLikeASaver podcast where you can learn about making saving easier, saving in spite of inflation and many other topics designed to support your saving habit.
- The America Saves Pledge, which can help you make a saving plan and receive ongoing support through emails and text messages
So, remember your unique financial situation calls for you to make the choices that will work best for you and your family, which will ultimately increase your financial confidence and help you continue making informed choices throughout your saving journey!
At America Saves we believe saving is a habit, not a destination. And it’s a habit that can be formed at any age. Whether you are a parent trying to instill this habit in your children or want to change your own saving behaviors, there are strategies that savers of all ages can develop. #ASW2023 #SavingAtAnyAge
“Savings is a habit, not a destination.” When starting your savings journey the most important place to focus is simply doing it — setting up automatic deposits to your savings account no matter how small.
HOW TO SAVE AUTOMATICALLY
Automatic savings simply means you have a process in place to save at regular intervals, whether that’s monthly, weekly, or daily.
If you want to save automatically, we suggest one of these three strategies:
Split to Save
Instruct your employer to direct a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both). Traditionally, you can set this up using your employer’s direct deposit, ask your HR representative for more details and set this up today. We call this method “Split to Save.”
Every payday, your bank or credit union transfers a fixed amount from your checking account to a savings or investment account. Talk to your local bank or credit union to set this up.
Choose a day of the month or a regular interval, such as every 2 weeks, to transfer a set amount from your checking account to a savings account. We particularly recommend this method for people with pay that varies, such as freelancers and those working in the gig-economy. Consider picking a lower dollar amount or a time of the month when many other automatic payments aren’t happening. You’ll set this up with your bank or credit union.
Not able to set those up because you’re paid by a physical check, in cash, or currently unbanked? You can still make saving a consistent habit!
- Save your loose change. Every day, put all of the loose change from your pocket or purse into a jar, and don’t spend it. If that jar starts to look tempting, take it to a local, federally insured bank or credit union to cash and deposit into a savings account with low to no fees. However, if you’ve got a big jar: there’s no harm in watching your automatic savings pile up- literally!
WHY AUTOMATIC SAVINGS WORKS
Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded. Soon you will be able to cover many unexpected expenses without putting them on your credit card or taking out a high-cost loan.
I DON’T HAVE ENOUGH MONEY TO SAVE
If you’re still in the stage of your savings journey where you’re reducing debt (which is saving!), then visit our resources to help you pay down debt.
Remember, even while you’re actively reducing debt, everyone has the ability to start to save, even if it’s a small amount.. We say “Start Small, Think Big.” You can start with only a small amount, and you can save daily, weekly, or monthly. Over time, your deposits will add up. Even small amounts of savings can help you in the future.
Take the first step today and take the America Saves pledge to save money, reduce debt, and build wealth over time.
Ready to Start Saving? Here are 3 Easy Steps to Get You Started:
Set a Goal:
What do you want to save for? (School, car, home, paying off debt).
Make a Plan:
How much do you need to save? How long will it take you? Contact us. We offer free financial counseling to help develop a plan.
Talk to your credit union about setting up automatic transfers into your savings account. Many employers also offer ways to have your pay automatically deposited into a savings account.
Establish a TOPCU Savings Account