Sharpen Your Savings Skills

Sharpen Your Savings Skills

Learning to save money takes practice. By saving, you can spend money on what’s important to you—whether that's a new video game, a trip to the movies, a used car, or even a college education.

Let's get started:
Elementary school:

- Ask your parents to help you open your own savings account at the credit union. Keep track of how much money you put in and take out. That way you can see how close you are to meeting your savings goal.
- If you're saving up for something special, like a new bike or toy, hang a picture of it on the wall. This will remind you of your savings goal every day until you reach it.
Middle school:

- Ask your parents if you can plan a family event, like a trip to the zoo or an afternoon at a waterpark. List all the things that will cost money—like tickets, food, and souvenirs. Set a budget, and encourage everyone to stick to it when the big day arrives.
- Make a list of things you want to spend your money on. Put the list in order, starting with the things you want the most. This will help you figure out what you really want to save up for.
High school:

- Consider taking on a part-time job. Earning your own money can help you save for big goals, like car or college expenses.
- Talk to your parents about opening a checking account at the credit union. Learn how to use a debit card responsibly and track transactions. Those skills will come in handy when you leave home.

Stop into Consumers Professional Credit Union for more great ideas on how to sharpen your savings and money skills.

Copyright 2015 Credit Union National Association Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.

Wild About Saving: Monkey See Monkey Do

We’d be “lion” if we said saving was easy. Teach children how to save for their goals and they’ll have one of the most difficult aspects of finance under their belt by the time they're teens—being consistent savers.

Here are a few ideas to help your cubs get Wild About Saving:

* Have young children—preschool age—sort different types of money into piles by color and size.

* Play store or credit union/bank. Help them use a pretend cash register.

* At the grocery store, let children of all ages help you shop. Teach them how to comparison shop—for example, show them that for every $4.85 box of cereal, there may be similar brands on sale for half as much.

* As children get older, let them know what things cost. Share sales receipts and bills that you receive for items or services you've purchased for them.

* If you decide to pay your children an allowance, include them in the decision. Discuss allowance amounts and what they should use their allowance for. The amount is your call, but allow their input. One idea is to have children set aside part of their allowance for spending, part for saving, and part for sharing. Explain what you'll pay for and what they should be responsible for. For example, when you're at the movies, maybe you agree to pay for movie ticket, but the Milk Duds are on them.

* As they reach high-school age, clarify what you will pay for and what your teens are responsible for. For example, they may want the newest cellphone that comes with a really high price tag. Establish your spending limit. If they still want the more expensive version, have them make up the difference. Often, once the responsibility of paying for items is on them, the "latest and greatest" aren't as important.

Get your children started right financially. Bring them in to Consumers Professional Credit Union—we have more ideas to help you teach them to get Wild About Saving!

Copyright 2015 Credit Union National Association Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.

Paying Yourself First When There’s Nothing Left To Save

You've read it a million times if you've read it once. Put money away. Save 10 percent of your income. Fund your 401(k) plan. Pay yourself first. Establish a nest-egg. Spend less than you earn.

But what if you can’t?

What if you simply don’t make it from one pay check to the next on a month-by-month basis? How are you supposed to “save” when there isn't enough money to pay the bills in the first place?

There’s no easy answer to this question, but here are several solutions, depending upon what’s holding you back. In an honest moment, ask yourself which of the solutions apply to your situation. Once you’ve figured that out, it’s (just!) a matter of taking the steps to resolve whatever it is that’s making it impossible to save. In every case, you CAN pay yourself first. As it is with many of life’s solutions, the answer may be simple, but it’s never easy.

1. Too much spent on little things. That overpriced coffee in the morning or lunch at McDonalds three times a week really CAN make a difference. A small hole can sink a big ship. If pocket-change spending is robbing you of long-term security, keep track of your spending-ALL of your spending-for seven consecutive days. If you don’t like what you see, take 10 percent off the top before anything else, pay all your bills, and give yourself some pocket money from whatever is left over.

2. Too much spent on big things. Perhaps you’re careful with the day-to-day expenses, but are carrying a huge mortgage on a house that’s now too large for your needs…or perhaps it always was. Maybe your insurance or long distance phone bills could be much cheaper, but you haven’t reevaluated the options in years. Take a look at the big expenses and see if you can find unnecessary (but maybe very much desired) holes in the ship.

3. Lack of organization. Has it been so long since you last balanced the checkbook that you’re not sure what percentage of your income is going towards groceries, and what percentage towards fun? It’s time to get organized. Find a system that works for you and get it together. You may find that once you’re organized, your problem is in a different category. But you won’t know that until you get your ducks in a row.

4. Too much debt. You may feel that the best use of your money right now is getting out of debt. And you’re probably right. However, if your only focus is paying off the high-interest credit cards, what happens if you hit a bump in the road and need cash? You borrow again. That puts you right back where you started. So instead of putting as much as you can spare toward paying down debt, set aside at least a small percentage of your income, perhaps 3 percent, toward savings and put as much as you can after that toward debt. It’s a good habit that will ensure you won’t have to borrow in case of an emergency, and it will get you ready for the debt-free days ahead when you’ll be able to save a full 10 percent.

5. Waiting to see what’s left after paying everyone else. If you do this, there will NEVER be anything left to put away. It’s human nature to spend everything you have…and then some. Pay yourself before you pay anyone else or you won’t pay yourself at all.

6. You’re not earning enough. Most people will quickly decide this is the category they fit into, but take a minute to evaluate this: do you have a job? Are you paying your rent or mortgage? Utility bills? Are there any luxuries, big or small, that you’re paying for? This is really a temporary category for those newly unemployed or those who have had a recent change in circumstances, such as a new baby or other additional household responsibilities. In this case, your only answer is more income. However, if your ship is sinking due to any of the reasons above or those which are not stated here, increased income will not resolve the issue.

Bottom line? Take something off the top. Even if you have to start with as little as 3 percent, you’ll naturally cut back on unnecessary expenses and have financial security to show for it.