Save for Emergencies and the Future
If your car broke down or you had an unexpected trip to the hospital, would you be able to cover the costs? If you don't have savings, you could wind up borrowing money at high interest rates, which means you'll owe even more in the long run. You could end up with credit card debt or loans you cannot easily repay.
It can be difficult to put your money away for an emergency. It can be especially tough if you find yourself living paycheck to paycheck. The Consumer Financial Protection Bureau (CFPB) offers tips that can help you save for your future. Keep reading below for links to resources on savings plans, planning your bills, automatic deposits, tax-time tips, teaching your kids to save, and the CFPB's retirement calculator.
Plans for Savings
If you really want to grow your savings, you should make a plan to save. These tools can help:
- Worksheet—Set up your own savings rule: Link opens in a new windowhttps://files.consumerfinance.gov/f/documents/cfpb_worksheet_my-savings-rule-to-live-by.pdf.
- Worksheet—Evaluate your savings, and create a savings plan: Link opens in a new windowhttps://pueblo.gpo.gov/CFPBPubs/CFPBFileDnld.php?PubType=P&PubID=13057&httpGetPubID=0.
- Toolkit—Make a plan to pay your bills, and save for the future: Link opens in a new windowhttps://files.consumerfinance.gov/f/documents/cfpb_ymyg_behind-on-bills_print.pdf.
- Quiz—Savings is a big part of people's financial wellbeing. Take the CFPB's financial wellbeing quiz and see how you compare to others in similar situations: Link opens in a new windowhttps://www.consumerfinance.gov/consumer-tools/financial-well-being.
Automatic Savings
One of the easiest ways to help you save is to set up an automatic deposit from your paycheck to your savings account. Here are two ways to do that:
- Have your bank or credit union automatically move money from your checking account to your savings or investment account on a regular basis, like a day or two after your expected paycheck.
- Ask your employer if you can split your paycheck between a checking and savings account, so a part of your pay gets automatically saved each pay period.
Tax-Time Savings
If you receive a tax refund, use it to kick-start your savings habit:
- Blog—Put your money to work for you during tax season: Link opens in a new windowhttps://www.consumerfinance.gov/about-us/blog/put-your-tax-refund-work-during-america-saves-week.
- Handout—Saving options for your tax refund: Link opens in a new windowhttps://files.consumerfinance.gov/f/documents/cfpb_taxtime_savings_handout.pdf.
Teach your kids to save.
Set your kids up financially by teaching them about money and savings:
- Interactive tool—Help your kids learn how to save at different ages: Link opens in a new windowhttps://www.consumerfinance.gov/consumer-tools/money-as-you-grow/young-children.
- Blog—How to kick start your child's savings habits: Link opens in a new windowhttps://www.consumerfinance.gov/about-us/blog/toddlers-to-teens-how-to-kick-start-your-childs-saving-habits.
- Blog—Why you should open a savings account for your kids: Link opens in a new windowhttps://www.consumerfinance.gov/about-us/blog/heres-why-you-should-open-a-savings-account-for-your-kids.
Save for retirement.
Once you've built up your savings habit, here are some ways to start making a plan for retirement:
- Interactive tool—Decide when to claim Social Security: Link opens in a new windowhttps://www.consumerfinance.gov/consumer-tools/retirement/before-you-claim.
- Learn more—Tips to help keep your retirement on track: Link opens in a new windowhttps://www.consumerfinance.gov/consumer-tools/retirement.
Dantus, C. & Kritt, E. (2018, February 26). How to save for emergencies and the future. Retrieved December 18, 2020, from the Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov