essay about methods for saving money

Essay on Saving Money

Students are often asked to write an essay on Saving Money in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Saving Money

Understanding the importance of saving.

Saving money is a crucial habit everyone should develop. It helps us prepare for unforeseen events, achieve financial goals, and secure our future.

Ways to Save Money

There are many ways to save money. You can start by setting a budget, cutting down on unnecessary expenses, and putting aside a portion of your income regularly.

Benefits of Saving Money

Saving money offers several benefits. It provides financial security, enables us to make big purchases, and contributes to a stress-free life.

In conclusion, saving money is a wise and beneficial practice. It leads to financial independence and a comfortable life.

Also check:

• Paragraph on Saving Money

250 Words Essay on Saving Money

The importance of saving money.

Saving money is a vital life skill, especially for college students who are just beginning to navigate the financial world. Understanding the importance of saving and implementing it in daily life can pave the way for financial security and independence.

Why Save Money?

The primary reason to save money is to achieve financial security. Unpredictable life events, such as job loss, medical emergencies, or unexpected expenses, can create financial stress. Having a safety net in the form of savings can mitigate these risks. Moreover, savings can fund life goals like education, homeownership, or starting a business.

Strategies for Saving Money

Creating a budget is the first step towards saving. It helps to track income and expenses, revealing potential areas for cost-cutting. Next, establishing an emergency fund can provide a financial buffer against unforeseen circumstances. Investing is another powerful tool for saving. It allows money to grow over time, leveraging the power of compounding.

The Role of Discipline and Consistency

Saving money requires discipline and consistency. It’s important to regularly contribute to savings, even if the amounts are small. Over time, these small amounts can accumulate into significant savings. It’s also crucial to resist the temptation of unnecessary spending and to prioritize long-term financial goals.

In conclusion, saving money is an essential skill that can lead to financial security and the ability to achieve life goals. By budgeting, creating an emergency fund, investing, and practicing discipline and consistency, college students can lay a solid foundation for their financial future.

500 Words Essay on Saving Money

Introduction.

Money, the lifeblood of modern society, is a central aspect of our lives. Its management, particularly the act of saving, is a crucial skill to master. Saving money is not just about accumulating wealth; it’s a strategic practice that promotes financial security, fosters discipline, and cultivates a sense of responsibility.

The importance of saving money cannot be overstated. It provides a safety net during unexpected circumstances like medical emergencies, job loss, or sudden large expenses. In addition, it can help fund significant life events such as higher education, buying a house, or retirement.

Moreover, saving money can lead to financial freedom. It allows us to make investments that can generate passive income, ultimately leading to a more comfortable and secure future. It’s not just about having money; it’s about the freedom and peace of mind that come with it.

There are several strategies for saving money. The first step is to create a budget. This involves tracking income and expenses, setting financial goals, and allocating a certain portion of income towards savings. It’s advisable to follow the 50/30/20 rule, where 50% of income goes to needs, 30% to wants, and 20% to savings.

Another strategy is automating savings. By setting up automatic transfers to savings accounts, we can save money without even thinking about it. This not only ensures regular saving but also reduces the temptation to spend.

Investing is another powerful way to save. By investing in stocks, bonds, or real estate, we can grow our wealth over time. However, investing requires careful planning and understanding of the market.

The Psychological Aspect of Saving Money

Saving money is not just a financial act; it’s a psychological one. It requires discipline, patience, and the ability to delay gratification. It’s about making conscious decisions to forego immediate pleasures for long-term benefits.

The act of saving also fosters a sense of responsibility. It makes us more aware of our spending habits and encourages us to make smarter financial decisions. Moreover, it can boost our confidence and self-esteem, knowing that we are taking control of our financial future.

In conclusion, saving money is a vital skill that everyone should cultivate. It’s not just about accumulating wealth; it’s about ensuring financial security, gaining financial freedom, and fostering personal growth. By adopting effective saving strategies and understanding the psychological aspects of saving, we can make informed decisions that will benefit us in the long run. Remember, every penny saved is a step towards a more secure and prosperous future.

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Sample Essay on How to Save Money: How to Be in Good Funds When You Are a Student

Students are always looking for ways to save money. Some turn to part-time jobs while others resort to reducing their expenditure. This is a sample essay on how to save money that could inspire you to write a masterpiece on this issue.

The life of a college student is not as rosy as most people imagine it to be. Well, there are amazing parties and all sorts of fun things to do when in college, but that’s just it. Students have societal expectations to deal with. They have assignments and projects to deliver and exams to ace. This is no easy task since some of the courses in college are tough and ever-absent professors don’t make things easier as well. There is also the issue of student finances to deal with. Without a steady income, college students are forced to rely on student loans and funds from their parents to see out a semester. These funds, however, are not always enough and students are forced to turn to unorthodox means to make sure they have enough for their education. Students are forced to reduce their spending on certain items, and this usually comes with harsh consequences.

In an attempt to save more, students would resort to cheap meals or even skip some of them altogether. These cheap meals are usually very unhealthy, and the students miss out on the vital nutrients that are needed for healthy growth and development. Some of the cheap meals that students turn to in an attempt to save money include fast foods such as French fries and burgers. These meals are unhealthy, and their regular consumption has a bad impact on people’s health.

Cutting out on entertainment is another ‘luxury’ that students do away with to save money. Movies and music concerts cost money and students avoid them so as to save as much as they can. Some even avoid going out with their friends and spend most of their time in their rooms. Entertainment, however, is very important for the emotional development of a human being, and students are advised to take time for entertainment. A lack of entertainment among college students may cause depression and other emotional issues since all that the students will be thinking about is books and their academic assignments.

Students also turn to free software and applications so as to save money. These non-premium versions, however, come with a lot of bugs and students are at risk of virus attacks to the minimum.

Some would even terminate their gym membership to save money. Most colleges have gyms on campus, but they are usually in a poor state and that is why students visit gyms that are off campus. When times get tough, most students would terminate their membership so as to save as much as they can. Without working out, students get unhealthy, and this brings a lot of challenges.

Tough times call for tough measures. Students resort to the above-mentioned activities to save money, but these methods have some harsh consequences attached to them.

References:

• Boatman, A., Evans, B., & Soliz, A. (2014). Applying the lessons of behavioral economics to improve the federal student loan programs: Six policy recommendations. Policy report written for the Lumina Foundation .
• Buckley, A., Soilemetzidis, I., & Hillman, N. (2015). The 2015 student academic experience survey. The Higher Education Policy Institute and Higher Education Academy .
• Duclos, R., & Khamitov, M. (2016). Is Cash Almighty? Effects of Hard vs. Soft Money on Saving/Investment Behavior.
• Fagerstrøm, A., & Hantula, D. A. (2013). Buy it now and pay for it later: An experimental study of student credit card use. The Psychological Record , 63 (2), 323.
• Garbinsky, E. N., Klesse, A. K., & Aaker, J. (2014). Money in the bank: Feeling powerful increases saving. Journal of Consumer Research , 41 (3), 610-623.
• Karlan, D., & Linden, L. L. (2014). Loose knots: strong versus weak commitments to save for education in Uganda (No. w19863). National Bureau of Economic Research.
• Thompson, S., Cross, W., Rigling, L., & Vickery, J. (2017). Data-informed open education advocacy: A new approach to saving students money and backaches. Journal of Access Services , 14 (3), 118-125.

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The first step people might take is recording their spending. It is a practical decision that allows for transparency and calculation. According to Better Money Habits, “Keep track of all your expenses—that means every coffee, household item and cash tip. Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount. Consider using your credit card or bank statements to help you with this” (“Saving Money Tips – 8 Simple Ways to Save Money”). It might seem painstaking, but this process will help you to note how payments and purchases affect your balance, and savings ultimately.

Another important factor in saving money is creating a budget. This is usually done after reviewing all your transactions and what you need to use your money for in order to survive. As stated by America Saves, “Create a budget that you can stick to. Look at places you can cut back in order to pay down high-interest debt and save. Each week, check your finances to make sure you are staying within your budget” (Bryan, Katie). The most essential factor in creating a budget is knowing you can keep to it through the bumps on the road of your finances.

As an extension of your budget, you can create a plan for your spending. You can give exact percentages and figures. According to Better Money Habits, “Try to save 10 to 15 percent of your income. If your expenses are so high that you can’t save that much, it might be time to cut back. To do so, identify nonessentials that you can spend less on, such as entertainment and dining out, and find ways to save on your fixed monthly expenses” (“Saving Money Tips – 8 Simple Ways to Save Money”). It might be painful to slash out certain areas of your life you enjoy spending money on, but in order to save money, you have to sacrifice some of your desires in order to achieve your goals.

A useful tip in addition to the previously mentioned points is that you can save money with a certain item or items in mind. Sometimes focusing on a certain object of desire can work better for people in terms of saving money. According to Better Money Habits, “One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for—perhaps you’re getting married, planning a vacation or saving for retirement. Then figure out how much money you’ll need and how long it might take you to save it” (“Saving Money Tips – 8 Simple Ways to Save Money”). Whether short-term or long-term, it is good to have a goal in mind while saving money.

Finally, prioritizing the way you spend and save money is a key element. According to The Balance, “Each individual will have slightly different priorities, but no matter what those priorities are retirement and your emergency fund will come first. After that, you can focus on your other goals and building wealth. Once you determine your priorities, you can create a chart or excel sheet that lets you track your progress on your goals” (Caldwell, Miriam). So, setting priorities is a nuance you should take into account while creating your spending and saving plans.

Looking back, we can say for certain that saving money is possible for the average citizen. However, there are certain ways you have to go about it: noting down your spending, making a budget, creating a plan for saving money, setting a savings goal for particular items, and figuring out your priorities.

Works Cited

“Saving Money Tips – 8 Simple Ways to Save Money.” Better Money Habits, Bank of America, 6 Sept. 2018, bettermoneyhabits.bankofamerica.com/en/saving-budgeting/ways-to-save-money.

Bryan, Katie. “Creating a Budget.” America Saves, americasaves.org/for-savers/make-a-plan-how-to-save-money/creating-a-budget.

Caldwell, Miriam. “How Should I Prioritize My Savings Goals?” The Balance, www.thebalance.com/how-should-i-prioritize-my-savings-goals-2386146.

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The Practice of Saving Money Essay

Difference between eap and general english, skills i have improved and the methods i used, eap areas to be worked on and the methods to use, saving money and carefully planning for the future, contrasting views on the topic, examples of contrasting views on the topic, personal view on the topic.

English for academic purposes focuses on high standards of English for higher learning and studies in general. It provides only what the students need. Therefore, it is goal-oriented as opposed to general English, where students are taught everything necessary to be learned and known in English (Smith 2015). EAP’s major task is learning how to plot theses and dissertations. Hence, there is a need for proper planning, writing, organization, and even proof-reading written works to ensure adherence to the rules of EAP.

Various factors such as the objectives, levels of the students, their goals, and even culture are challenges that make it impossible for EAP to be provided equally. Consequently, such factors must be put into consideration when establishing effective methods of learning EAP. On the contrary, general English only aims at basically teaching students how to listen, speak, read and write English in their day to day communications (Smith 2015).

EAP has numerous features. These features include genres, signposting, and even the use of linking words. Knowledge of the language is also a very crucial component of EAP as it aids the learner in understanding questions and responding to them in their examinations.another differentiating factor between the two varieties of English is that EAP learners are generally adults while General English learners include both children and adults.

Reading and writing are among the main skills I have enhanced. The process of achieving their enhancement was possible through the formation of groups. Particularly, we always hold discussions for purposes of demonstrating how to pronounce and write English words. Group discussions have also helped improve speaking and listening skills. Through them, we are always able to discuss every challenging thing we came across. Eventually, every learner is corrected through consensus and lessons end with all problems settled.

Learners’ expectations should always be addressed in good time (Smith 2015). In this process, appropriate materials must be used in proper ways. This situation can be achieved by setting goals on how to meet learners’ expectations and using certified and approved materials. At the same time, individuals training as teachers of both EAP and general English should be well trained to handle their students without difficulties.

Saving money and striving to make one’s future bright is vital. People should invest every small amount of money they get in businesses for the sake of securing the future. Investing in businesses helps reduce a lot of expense and increase earnings ( Spreading your wings 2015 ). Savings also prevent people from becoming bankrupt for the money is not all spent. Some reasonable amounts of money are left for use later in life. Saving also enables one to get ready for responsibilities that come with getting children. Specifically, one will be able to cater to needs such as good clothing, food, and even quality education.

Apart from taking care of future needs, saving money is ideal because individuals that save money are able of coping with emergencies that may leave someone helpless if he or she did not save (Kobliner 2010). Hence, it is important to save in order to better the future and make life more comfortable. In addition, people must also save with the view of avoiding debts that come when one lacks money. Saving ensures that they comfortably and conveniently cope with situations as they arise without requesting loans and grants, which might later burden them.

However, saving can be very challenging considering the small amounts of money earned by some groups of people and many unending needs that people must satisfy (Eyden 2012). Nonetheless, such situations can be solved and made easier by opening bank accounts for safekeeping. In the same vein, the situation can be salvaged through engaging in leisure activities that do not require money or those that need less money (Eyden 2012).

Examples of such activities are mostly sporting activities that keep one occupied with the view of reducing his or her expenditure. Selling items you no longer need can also earn extra money for saving. Similarly, the keeping of receipts and analyzing them as you check on what you should not buy again or what you will reduce spending on can significantly reduce the amount you spend.

Some people may argue that the death of someone cannot be predicted. Therefore, there is no reason for saving money for the future (Kobliner 2010). They may also argue that saving makes someone lag behind in terms of modern trends and fashions as one is forced to forego secondary needs and only focus on necessary items. Worse still, balancing between one’s spending habits and saving is also a difficult task. Proponents of this standpoint insist that people deny themselves very many things when they decide to save. Hence, such people’s lives do not run the way they should.

An individual who opens a fixed account to save money for five years then dies in the third year of saving having foregone very many things is a good example of a counterargument to the topic. Such a person does not enjoy the benefits of saving. Another good example is that of an individual who avoids keeping up with trendy things and fashion and being classy just to save money for the future (Eyden 2012). Such an individual lives differently from his or her friends. The third example of contrasting views is that of one having problems with balancing between saving and spending. Precisely, she or he saves enough money, but when an emergency arises or when an urge to acquire something or use the money in another way comes up, one quickly opts to use the money saved. This brings about the challenge of balancing.

I believe that both saving and spending are necessary. The best thing to do is to be conscious of both. Do not deny yourself so much in the name of saving and do not also spend everything without thinking of what tomorrow will be. It is good to budget for everything that requires your money and balances the budget well as this prevents overstraining in other areas. Budgeting helps people avoid debts as the money one has is planned for in a way that ensures that all things are catered for, including savings and other amounts meant for future use and emergencies. For easier saving of money, one should avoid impulse buying as it leads to having unnecessary items and spending money in an unplanned way. Hence, it is important to create a budget for yourself.

Eyden, T 2012, Personal financial plans: Saving for the future . Web.

Kobliner, B 2010, A painless saving plan for your future . Web.

Smith, Z 2015, English for academic purposes Vs. general English- 101 crash course . Web.

Spreading your wings, 2015 . Web.

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The Importance of Saving Money for Students

Table of contents, building financial resilience, advantages of financial literacy, strategies for student savers, lifelong impact of prudent financial management, references:.

• Fernandes, D., Lynch Jr, J. G., & Netemeyer, R. G. (2014). Financial literacy, financial education, and downstream financial behaviors. Management Science, 60(8), 1861-1883.
• Grable, J. E., & Lytton, R. H. (1999). Financial risk tolerance revisited: The development of a risk assessment instrument. Financial Services Review, 8(3), 163-181.
• Levine, J., & Nidiffer, J. (1996). Encouraging student responsibility for learning. In Teaching at Its Best (pp. 161-172). Anker Publishing Company.
• Mandell, L. (2008). Financial literacy of high school students. In Financial Literacy (pp. 89-108). Springer.
• Tam, M., Chan, R., & Morris, M. W. (2015). Building financial literacy: A comparison of two approaches to teaching financial literacy to university students. Journal of Family and Economic Issues, 36(2), 231-242.

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Essay On Saving Money For Students

In this essay, we will discuss the importance of saving money and some useful tips to save money efficiently.

Essay About Saving Money

Introduction:

Money is an essential commodity that is required for daily survival. It helps to fulfill our basic needs and wants, but we cannot deny the fact that managing money can be quite challenging. Many people struggle to save money and end up spending more than they earn. Saving money is an important habit that should be cultivated from a young age. In this essay, we will discuss the importance of saving money and some useful tips to save money efficiently.

Importance of Saving Money:

Saving money is important for several reasons. Firstly, it helps to create a financial safety net. It ensures that we have money in case of emergencies like medical emergencies, unexpected home repairs, or job loss. Secondly, saving money can help us achieve our long-term goals like buying a house, car, or going on a vacation. It is essential to have a savings plan in place to accomplish these goals. Lastly, saving money can provide financial stability and reduce financial stress.

Useful Tips to Save Money:

Here are some useful tips that can help you save money:

• Create a budget: Creating a budget is the first step towards saving money. A budget helps you track your income and expenses, and it enables you to identify areas where you can cut down your expenses.
• Set a savings goal: Setting a savings goal helps you stay motivated and focused. It can be a short-term goal like saving for a vacation or a long-term goal like saving for retirement.
• Avoid unnecessary expenses: Avoiding unnecessary expenses is crucial when it comes to saving money. Evaluate your expenses regularly and eliminate anything that is not necessary.
• Shop smartly: Shopping smartly is an excellent way to save money. Look for deals, use coupons, and compare prices before making a purchase.
• Save automatically: Saving automatically is an excellent way to ensure that you save money consistently. You can set up automatic transfers from your checking account to your savings account.

Conclusion:

Saving money is not an easy task, but it is crucial for financial stability and achieving long-term goals. By following the tips mentioned above and cultivating good financial habits, you can save money efficiently. Remember, it’s never too late to start saving, so start today and secure your financial future.

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• Budgeting & Savings

Why Saving Money is Important

Amy Fontinelle has more than 15 years of experience covering personal finance, corporate finance and investing.

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom.

If you don’t earn much and you can barely pay your bills, the idea of saving money might seem laughable. When you only have $5 left at the end of the month, why even bother to try saving? Because everyone has to start somewhere, and if you work at it, your financial situation is likely to improve over time. Saving money is worth the effort. It gives you peace of mind, it gives you options, and the more you save, the easier it becomes to accumulate additional savings.

Peace of Mind

Who hasn’t lain awake at 3:00 a.m. wondering how they were going to afford something they needed? If money is really tight, you might be wondering how you’re going to pay the rent next week. If you’re a little further up the financial ladder, you might be worried about how many months you could pay the bills  if you lost your job. Later in life, the money thoughts that keep you up at night might center around paying for your kids to go to college or having enough money to retire.

As you accumulate savings, your financial worries should diminish, as long as you’re living within your means . If you already have next month’s rent taken care of by the first week of the current month, if you know you can get by without work for three to six months, if you have savings accounts for your children’s education and your own retirement that you’re regularly funding, you’ll sleep better at night. The reduced stress from having money in the bank frees up your energy for more enjoyable thoughts and activities. Finding the best savings account is key to making sure that the money that you do put away earns you the highest interest.

Expanded Options

The more money you have saved, the more you control your own destiny. If your job has you on the verge of a nervous breakdown, you can quit, even if you don’t have a new job lined up yet, and take time off to restore your sanity before you look for new employment. If you’re tired of living in an unsafe neighborhood, you can move to a safer area because you’ll have enough for a deposit on a better apartment or a down payment on a nicer home .

If you get sick and need expensive healthcare that your insurance doesn’t cover, you’ll have a way to pay for it even though you can’t work while you’re getting treatment. And knowing that you have options because of the money you’ve socked away can give you even more peace of mind.

No, money doesn’t solve every problem. If you are laid off, it might take as long as two years to find a new job. Some illnesses won’t go away no matter how many procedures you can afford, and random crime can happen even in a supposedly secure, gated community. But with more money in the bank to deal with issues like these, you give yourself better odds of coming out on top.

Money Working for You

Most of us put in hundreds of hours of work each year to earn most of our money. But when you have savings and stash your funds in the right places , your money starts to work for you. Over time, you’ll need to work less and less as your money works more and more, and eventually, you might be able to stop working altogether.

What does it mean to have your money working for you ? When you’re first starting to save, you’ll want to put your money somewhere safe, where you can access it right away for unforeseen expenses. That means an online savings account, where you might earn 1% interest annually and not even keep up with inflation , which tends to run around 1% to 2% per year. You’ll even have to pay taxes on your meager 1% earnings. Anything is better than earning 0%, though, or not having savings and going into credit card debt , which will cost you 10% to 30% in interest per year.

Once you’ve saved three to six months’ worth of expenses in your emergency fund , you can start saving money in a tax-advantaged retirement account. That’s where the magic starts to happen. These accounts, such as a Roth IRA or 401(k), allow you to invest in the stock market. You won’t pay any taxes on those investment gains along the way, which will help your money grow even faster. With a Roth IRA, you contribute after-tax dollars, and everything that’s in the account after that is yours to keep. With a 401(k), you get to contribute before-tax dollars, giving you more money to invest upfront; you’ll pay taxes when you withdraw the money in retirement. (If you’re not sure whether it’s better to pay taxes now or later, you can hedge your bets and contribute to both your employer-sponsored retirement plan and a Roth IRA.) The third choice, a traditional IRA, allows you to contribute before-tax dollars as you do with a 401(k).

If you have a high income and low expenses, you might accumulate enough to retire in 10 years. For most people, it takes closer to 40 years. But at some point, if you save and invest regularly, you should be able to live off the income generated by your investments—the saved money that’s working for you. The earlier you start, the more time a small amount of money has to grow large through the miracle of compounding .

The Bottom Line

Saving money is incredibly important. It gives you peace of mind, expands your options for decisions that have a major effect on your quality of life , and eventually gives you the option to retire. Most people who are wealthy got there through a combination of their own hard work and smart savings and investment decisions. You can become one of those people, too.

U.S. Bureau of Labor Statistics. " Inflation Rates ."

Internal Revenue Service (IRS). " Topic No. 403 Interest Received ."

Consumer Financial Protection Bureau. " The Consumer Credit Card Market ," Page 57.

Internal Revenue Service. " Roth Comparison Chart ."

Internal Revenue Service. " Traditional IRAs ."

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12 Easy Ways To Save Money

Saving money can be easy when you find a method that suits your life

Establish a Budget

Treat savings like a bill.

• Calculate Your Purchases by Work Hours

Set Up Savings Automatically

Budget your savings using cash envelopes, take advantage of company matches.

• Eat Out Less

The Balance / Getty Images 

For many people, saving money doesn’t come naturally. It may even seem like a daunting or impossible task depending on your level of disposable income. However, like other chores, the most challenging part about saving money is knowing how to start. Saving money can be a breeze when you find the method that works best for you. Learn some simple and effective money-saving tips that can help get you off to a great start toward reaching your savings goals.

Key Takeaways

• The first step to saving money is creating a budget.
• Creating realistic savings goals limits burnout and leads to more savings in the long run.
• Other simple methods of saving money include downloading budgeting apps, waiting 24 hours before making a big purchase, and treating your savings contributions like a bill.
• Making your savings automatic will ensure you always find money to save.

The first step to saving money is understanding where your money is going each month. “You can't start effectively saving money until you have a well-defined monthly budget ,” finance writer Chris Panteli told The Balance in an email interview. A budget puts you in control of your money. The trick is finding the one that’s right for you.

A proper budget should contain at least your monthly income, your fixed expenses, and an allocation of funds toward entertainment. There are many free budgeting tools and apps that can help you stay on track.

After your budget is set, a sure-fire way to save money is to treat your savings like a bill, said financial analyst Sophia Jones to The Balance in an email interview. “Whenever you get your pay, take out savings first and put it somewhere else, maybe in a high-yielding bank account. By doing so, you train yourself to consistently save, and practice living within your means while still having savings,” Jones said.

Calculate Your Purchases by Work Hours Instead of Cost

Thinking like a saver means thinking about the true cost of the things you buy and how many hours you will need to work to afford them. Start by taking the dollar amount of the item and dividing it by your hourly pay.

If you’re paid a salary and aren’t sure of your hourly rate, divide your annual salary by the number of weeks you work per year, then again by the number of hours you work each week. If you make $70,000 per year, your hourly rate is around $33.65 ($70,000 / 52 =  $1,346 per week / 40 = $33.65 per hour).

For example, if you want to purchase a $48 shirt and you earn $12 per hour, ask yourself if buying it is worth the four hours you’ll have to work to pay for it.

Try the 24-Hour Rule

This is an easy and effective trick to help you save. When you see an item you think you need or want, don’t buy it right away. Instead, set a “24-hour” rule. Maybe you’ll buy it after all, or maybe you won’t. But at least you can give yourself more time to think it through.

One way to enforce the 24-hour rule when online shopping is to disconnect your debit or credit card from your browser or phone. Sometimes putting a little friction between you and that “Check Out” button is all it takes to cut down on impulse purchases.

“Habits work best when they happen in the background,” Catch CEO Kristen Anderson told The Balance via an email interview. Using smart defaults such as directing a percentage of your paycheck to a separate savings account will have you hitting your savings goals in no time.

Start Small

Anything is doable when it’s done in baby steps. Corey Noyes, a financial advisor at Balanced Capital, said, “Too many people stretch themselves too thin when they first try to save.” This can lead to frustration, discouragement, and eventually giving up your savings goals. The key is to “choose a manageable amount that doesn't cause you stress and set it on autopilot,” Noyes said.

According to a 2021 study by the MIT Sloan School of Management, people spend more money when they use a credit card rather than cash. However, if your spending habits prevent you from saving money, you can try using the envelope-budgeting method . After creating your monthly budget, use cash to separate your savings and each of your other expenses into envelopes. Once the envelopes are empty, you’re done for the month, and your savings are intact.

Open a Spend-and-Save Account

A spend-and-save account works by automatically helping you save the spare change left after making a purchase. It rounds up each debit-card transaction to the nearest dollar, then deposits the difference into your savings. Of course, to reach larger saving goals, you’ll need to supplement a spend-and-save account with a regimented budget, but you might be surprised how quickly your spare change piles up.

Many companies offer employee incentives by matching a certain percentage of the money you save in retirement plans such as your 401(k). This means that for every dollar you save, they will give you an extra dollar, hence the match. So if you’re not taking advantage of your employer match, you are leaving free money on the table.

The IRS allows 401(k) participants to take a penalty-free loan from their 401(k) plan of up to $50,000 when buying their first home.

Pretend Your Windfalls Don’t Exist

When you need an easy way to save money, setting aside a windfall of extra cash needs to be a “no brainer.” Whether the money comes from a work bonus, bingo winnings, or tax refund, commit to adding it to your savings and pretend like it doesn’t exist.

Shop on Wednesdays

Why is Wednesday unique? “When most grocery shops start their new bargains on Wednesdays, customers typically get early access to the latest deals and special offers,” financial analyst Steve Wilson told The Balance in an email interview. “Additionally, shops occasionally accept coupons from the prior week,” Wilson added.

Commit To Eating Out One Day Less Each Week

If you enjoy eating out, you don’t have to give it up. Instead, just commit to cutting back. For example, suppose you spend at least $15 per day eating out five days a week. That quickly adds up to $300 a month. However, if you cut back even one day a week, you’ve just found $60 a month to add to your savings.

The Bottom Line

There are many benefits to saving money, and the reasons for saving are different for everyone. While consistently putting money aside can be a challenging habit to start, the trick is finding a few saving methods that resonate with you and your lifestyle.

Frequently Asked Questions (FAQs)

Why is it important to save money.

Saving money is more than important—it’s a necessity. Your savings can give you peace of mind by helping you avoid turning to credit cards or accumulating debt when unexpected expenses pop up. Saving money can also allow you to achieve financial and personal goals such as buying a house. On top of that, saving money can help you grow your money through the power of compound interest .

How much money should I save each month?

The popular 50/30/20 budgeting method suggests using 20% of your income as a guideline for savings. Initially, you can allocate that money toward your emergency fund until you save three to six months' worth of expenses. After that, you can begin putting the money toward other financial goals.

How much do I need to save to buy a house?

When you’re preparing to buy a house, it's a good idea to save around 25% of the purchase price in cash to cover a down payment, closing charges , and relocation expenses. For example, if you buy a property for $300,000, you may end up paying more than $75,000 to cover the down payment and all of the various closing costs. That said, if you are a first-time homebuyer, you can buy a home with a down payment as low as 3.5% of the home’s value.

IRS. “ Retirement Topics - Plan Loans .”

Department of Housing and Urban Development. “ Let FHA Loans Help You .”

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8 simple ways to save money

Saving is easier when you have a plan—follow these steps to create one

Read, 4 minutes

Sometimes the hardest thing about saving money is just getting started. This step-by-step guide can help you develop a simple and realistic strategy, so that you can save for all your short- and long-term goals.

Record your expenses

The first step to start saving money is figuring out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip as well as regular monthly bills. Record your expenses however is easiest for you—a pencil and paper, a simple spreadsheet or a free online spending tracker or app. Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount. Use your credit card and bank statements to make sure you’ve included everything.

Bank of America clients can access the Spending & Budgeting tool in Mobile and Online Banking to automatically categorize transactions for easier budgeting.

Include saving in your budget

Now that you know what you spend in a month, you can begin to create a budget . Your budget should show what your expenses are relative to your income, so that you can plan your spending and limit overspending. Be sure to factor in expenses that occur regularly but not every month, such as car maintenance. Include a savings category in your budget and aim to save an amount that initially feels comfortable to you. Plan on eventually increasing your savings by up to 15 to 20 percent of your income.

Find ways to cut spending

If you can’t save as much as you’d like, it might be time to cut back on expenses. Identify nonessentials, such as entertainment and dining out, that you can spend less on. Look for ways to save on your fixed monthly expenses, such as your car insurance or cell phone plan, as well. Other ideas for trimming everyday expenses include:

Search for free activities

Use resources, such as community event listings, to find free or low-cost entertainment.

Review recurring charges

Cancel subscriptions and memberships you don’t use—especially if they renew automatically.

Examine the cost of eating out vs. cooking at home

Plan to eat most of your meals at home, and research local restaurant deals for nights that you want to treat yourself.

Wait before you buy

When tempted by a nonessential purchase, wait a few days. You may realize the item was something you wanted rather than needed—and you can develop a plan to save for it.

Set savings goals

One of the best ways to save money is to set a goal . Start by thinking about what you might want to save for—both in the short term (one to three years) and the long term (four or more years). Then estimate how much money you’ll need and how long it might take you to save it.

Common short-term goals: Emergency fund (three to nine months of living expenses), vacation or down payment for a car

Common long-term goals: Down payment on a home or a remodeling project, your child’s education or retirement

Set a small, achievable short-term goal for something that’s fun and goes beyond your monthly budget, such as a new smartphone or holiday gifts. Reaching smaller goals—and enjoying the reward you’ve saved for—can give you a psychological boost, making the payoff of saving more immediate and reinforces the habit.

Determine your financial priorities

After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. For example, if you know you’re going to need to replace your car in the near future, you could start putting away money for one now. But be sure to remember long-term goals—it’s important that planning for retirement doesn’t take a back seat to shorter-term needs. Learning how to prioritize your savings goals can give you a clear idea of how to allocate your savings.

Pick the right tools

There are many savings and investment accounts suitable for short- and long-term goals. And you don’t have to pick just one. Look carefully at all the options and consider balance minimums, fees, interest rates, risk and how soon you’ll need the money so you can choose the mix that will help you best save for your goals.

Short-term goals

If you’ll need the money soon or need to be able to access it quickly, consider using these FDIC-insured deposit accounts:

• A savings account
• A certificate of deposit (CD) , which locks in your money for a fixed period of time at a rate that is typically higher than that of a savings account

Long-term goals

If you’re saving for retirement or your child’s education, consider:

• FDIC-insured individual retirement accounts (IRAs) or 529 plans, which are tax-efficient savings accounts
• Securities, such as stocks or mutual funds. These investment products are available through investment accounts with a broker-dealer 1

Make saving automatic

Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much and where to transfer money or even split your direct deposit so that a portion of every paycheck goes directly into your savings account. The advantage: You don’t have to think about it, and you’re less likely to spend the money instead. Other easy savings tools include credit card rewards and spare change programs, which round up transactions to the nearest dollar and transfer the difference into a savings or investment account.

With Mobile & Online Banking, Bank of America clients can easily set up automatic transfers between accounts.

Watch your savings grow

Review your budget and check your progress every month. That will help you not only stick to your personal savings plan, but also identify and fix problems quickly. Understanding how to save money may even inspire you to find more ways to save and hit your goals faster.

1 Remember that securities are not insured by the FDIC, are not deposits or other obligations of a bank and are not guaranteed by a bank. They are subject to investment risks, including the possible loss of your principal.

The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America Corporation and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment management. ©2024 Bank of America Corporation.

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Essay on Money for Students and Children

500+ words essay on money.

Money is an essential need to survive in the world. In today’s world, almost everything is possible with money. Moreover, you can fulfill any of your dreams by spending money. As a result, people work hard to earn it. Our parents work hard to fulfill our dreams .

Furthermore various businessmen , entrepreneurs have startup businesses to earn profits. They have made use of their skills and intelligence in getting an upper hand in earning. Also, the employee sector works day and night to complete their tasks given to them. But still, there are many people who take shortcuts to success and get involved in corruption.

Black Money

Black money is the money that people earn with corruption . For your information corruption involves the misuse of the power of high posts. For instance, it involves taking bribes, extra money for free services, etc. Corruption is the main cause of the lack of proper growth of the country .

Moreover, money that people having authority earns misusing their powers is black money. Furthermore, these earnings do not have proper documentation. As a result, the people who earn this do not pay income tax . Which is a great offense and the person who does this can be behind bars.

Money Laundering

In simple terms, money laundering is converting black money into white money. Also, this is another illegal offense. Furthermore, money laundering also encourages various crimes. Because it is the only way criminal can use their money from illegal sources. Money laundering is a crime, and the people who practice it are liable to go to jail.

Therefore the Government is taking various preventive measures to abolish money laundering. The government is linking bank accounts to AADHAR Card. To get all the transaction detail of each bank account. As a result, the government comes to know if any transaction is from an illegal source .

Also, every bank account has its own KYC (Know your Customer) this separates different categories of income of people. Businessmen are in the high-risk category. Then comes the people who are on a high post they are in the medium-risk category. Further, the last category is of the Employee sector they are at the lowest risk.

Get the huge list of more than 500 Essay Topics and Ideas

White Money

White money is the money that people earn through legal sources. Moreover, it is the money on which the people have already paid the tax. The employee sector of any company always has white money income.

Because the tax is already levied on their income. Therefore the safest way to earn money is in the employment sector. But your income will be limited here. As a result, many people take a different path and choose entrepreneurship. This helps them in starting their own company and make profitable incomes .

Every person in this world works hard to earn money. People try different methods and set of skills to increase their incomes. But it is always not about earning money, it’s about saving and spending it. People should spend money wisely. Moreover, things should always be bought by judging their worth. Because money is not precious but the efforts you make for it are.

Q1. What is Black Money?

A1. Black money is the money that people earn through illegal ways. It is strictly prohibited in our country. And the people who have it can go to jail.

Q2. What is the difference between Black money and White money?

A2. The difference between black money and white money is, Black money comes from illegal earnings. But white money comes from legal sources with taxation levied on it.

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Saving Money – Need and Importance : Essay, Speech, Article

Saving money – need and importance: essay, speech, article.

“500 and 1000 notes made me realise the value of money” -Today’s kid

Meaning of Saving Money

Importance of Saving Money : Money is something very much valuable and required for survival. It’s not just one piece of paper but it holds some value, a value that has to be understood by every individual. If we quote it into a particular definition then the money is, “A measure of value, medium of exchange and means of payment consisting of notes, coins and paperless payment systems like smart cards.” It is not about some class of people but about everyone, be it the lower class or the Richie rich. Money holds so much that we even fail to anticipate. It holds power, the ability to create jealousy, manipulation, greed, and whatnot.

Needs of Saving Money

Money by far is the most necessary thing required after basic necessities i.e. food, shelter, and clothing. It is the fundamental requisite for a middle-class person to meet his ends and for the higher class to get his luxurious demands fulfilled. The fact that shouldn’t be forgotten is that that you need to save for future crises, for the business problems, for travel, for any sort of urgency, for fulfilling a long-cherished dream, or for anything. Money is a prized possession though its worth is subjective anyhow it is needed in every next step and for that, you need to prioritize your needs and also understand how much savings play an important role in securing the future.

Importance of Saving Money

The time you spend your money you may forget your limits but you got to plan first and be rational before you just give your money to something that is just as good as scrap. This is for a generation existing right now. We argue and claim that we understand the worth of it but well we don’t. The day we start earning then maybe we might turn out to be good savers. As we say we don’t understand things until we ourselves face them. Besides this being secured by parents is great but depending on them is not happening so we need to pour senses and start saving.

Saving may be a tough task though but you can always have alternative plans like for instance this is for someone who cannot keep cash on hand for long as he’s going to spend it, then buy a piggy bank or get yourself one bank account. You can give it to your parents or let’s just presume that you’ve good self-control then you start saving ten percent every month from your expenses. So this is how you manage your finances.

The old school generation or the one who are not the nineties kid then they very well know the importance of saving and its perks. They have had grandfather or grandmother who would have given better techniques for that. But we as in everyone, not just one particular age group; the one’s who aren’t successful in saving we need to work from scratch. We should start asking prices, compare them, stop running behind brands, go for discounts and sales, use coupons, avoid spendings on junk food, and last but not least try bargaining even when we fail n number of times; surely we will master that art.

Read Also: 5 Best Student Credit Cards in Canada

Conclusion on Saving Money

So well it definitely is important to save as crises never come with alarms. There is a crowd existing with a thought that we have one life so why think twice but well this doesn’t hold true in the case of money. You always should think twice before spending it. It’s not about restricting yourself from living blissfully but prioritizing your needs. The saved money may turn out to help you someday when it’s the vital need for your life and then you would be thankful for yourselves. Obligations can help but being cautious is more helpful.

Save Your Money, Maybe It Would Save Your Life!

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Student Essay: Saving for Retirement: ‘Time Is on Our Side’

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Rohit R. is a junior at Ridge High School in Basking Ridge, N.J. Roy responded to KWHS’s recent outreach for student essays with a pitch about the importance of saving for retirement, a topic that is not typically top-of-mind for 16-year-olds. After all, when you’re a teenager – retirement just seems so far away. But, as Roy points out, starting early can make a huge difference. And considering 46% of all American workers have less than $10,000 saved for retirement and 29% have less than $1,000 saved, it’s never too early to start thinking about your nest egg. In this essay, Roy helps us understand why.

Both my parents are computer engineers. My father Jaideep is vice president of information technology at HSBC, a global financial services firm, and my mother Anu is a senior IT professional at Verizon Wireless. I often hear my parents discuss their retirement plans and the likelihood that they are not saving enough for the days when they are no longer earning income from their jobs. They worry about not being able to pay for housing, transportation, medical care and other basic living expenses after they retire. Additionally, they want to travel, play golf and eat out, but are anxious that they won’t be able to afford the good life. They often lament the fact that they did not start to save for retirement earlier in their careers. My parents tell me a lot of things (sound familiar?), but they especially tell me not to make their same retirement-planning mistakes.

Retirement Savings Shortfall

Medical advances and today’s healthier lifestyles mean that we are likely to live longer than ever before. According to some estimates, millennials are expected to live beyond 90 years of age. Considering the average retirement age in America is around 60, most of us will need to save enough money to live for another 30 years or more after we stop working in our full-time careers.

A recent study by the National Institute on Retirement Security estimates the overall U.S. retirement savings deficit or shortfall to be between $6.8 trillion and $14 trillion.

And according to a recent research report by Vanguard, saving for retirement is lowest among employees who are younger than 25. Only about 50% of employees younger than 25 saved for retirement in 2015, while about 70% of employees between ages 35 and 64 took advantage of employer retirement plans to put money away for retirement. My biggest takeaway from all the numbers: most young Americans don’t start saving early enough.

In addition to employees not saving for retirement, opportunities for other income streams are also fading. Most companies in today’s business world have stopped offering traditional pension plans where the employer provides money after retirement. Additionally, the Social Security Trust Fund — Government-provided Social Security for older Americans — is severely underfunded and is expected to run out by around 2033. As teenagers, we can’t depend on these previous sources of income to provide financial security in our old age. It is up to us to save enough money for our golden years.

The best time to start thinking about saving for retirement is when you start generating income, especially as you begin your career. My parents have saved money in two popular retirement plans called the 401(k) retirement plan and the Individual Retirement Account ( IRA ).

A 401(k) retirement plan allows employees to deduct money from their salaries and to contribute that money to their own 401(k) retirement account. The benefit is that these deductions are not subject to federal and state income taxes. For example, last year my parents contributed $36,000 ($18,000 each) to their 401(k) retirement accounts, enabling them to save more than $14,000 in income taxes. Another benefit is that this money is pre-committed, meaning you don’t physically have to save it yourself — once you specify the amount and set it up through your employer, the money automatically deducts from each paycheck that you receive and is invested through the 401(k).

Most employers also provide an added incentive for employees to save using 401(k) accounts by matching their contributions. This essentially means that employers are giving you free money to save for retirement. So, once you enter the work world take full advantage of it! My parents, for example, received more than $12,000 last year in matching contributions from their employers! One thing to keep in mind is that the Internal Revenue Service (IRS) does limit the amount that can be contributed to a 401(k) plan. The 2016 limit is $18,000.

The money contributed to a 401(k) plan can usually be invested in financial instruments such as mutual funds. Mutual funds are financial products that invest in collections of stocks and/or bonds and offer higher rates of return. Thus, the tax-free money saved in a 401(k) account has the opportunity to grow over a period of time.

You can start taking money out of the 401(k) plan after you reach 59½ years of age. You will be hit with a 10% penalty if you try to take the money out sooner. This, of course, is to ensure that we are forced to save for retirement and do not raid our retirement accounts for frivolous activities. Once we start withdrawing money during retirement, that money is then subject to federal and state income taxes. Since we will not typically have other income during retirement, the taxes that we will have to pay will be significantly lower than what we will have to pay while working.

An IRA is very similar to a 401(k) retirement plan. An IRA offers tax-deferred growth on retirement savings and is not to be taxed until the money is withdrawn. While the opportunity to contribute to a 401(k) plan is restricted to people employed by companies that offer such plans, anyone can contribute to an IRA as long as he/she is less than 70½ years of age. The maximum amount that can be contributed to an IRA is limited to $5,500 for 2016.

Multi-millions in Your Future?

I feel that saving for retirement is crucially important for my future happiness, and I plan to save for retirement as soon as I start earning income. Time is on our side. High school students can even contribute to an IRA to the extent that you have earned income – so if you have a real job and are reporting your income on a tax form, you can start saving for retirement now. Talk with your parents or guardians, and research your options. If you’re not yet 18, you will have to open a custodial account, meaning your parents must co-sign. But the advantages of even starting a few years before college can really add up.

If you’re still not convinced, consider the following reality check. If you save at least $12,000 per year from the age of 21 and get just a modest 5% return on your invested savings, then you will have more than $2 million saved in your retirement account by the time you’re 67. It’s all about planning for your financial security – and a well-deserved trip or two to Hawaii. Hope to see you on the beach in a few decades!

Related Links

• Forbes: Fund a Teenager’s Million-dollar Retirement
• NYT: Summer Job? Time to Start a Roth IRA
• NYT: Getting Workers to Save More For Retirement
• Bankrate.com: IRA Accounts for Novices
• Should Young Investors Choose a Traditional IRA or a Roth IRA?
• The Washington Post: Running Out of Money in Retirement

Conversation Starters

Rohit says that his parents “often lament the fact that they did not start to save for retirement earlier in their careers.” Essentially, they feel they wasted valuable time. Why? What is the value in investing sooner in life?

Have you ever thought about retirement savings? Do your parents or guardians save for the day they will stop working? Go home and have a conversation with your parents, grandparents, aunts and uncles about retirement. Write down three or four key takeaways from your discussions and share them with the class.

The statistics for saving early for retirement are really compelling. And yet, the data show that not many Americans are saving enough money. Why do you think that is? What is preventing them, especially if they have enough income to save?

7 comments on “ Student Essay: Saving for Retirement: ‘Time Is on Our Side’ ”

It is very important to save money for retirement. It was a great assay.

I have thought about saving for retirement in the future. My parents don’t have the luxury of being able to do that. I think that many American’s are not saving money because they don’t have the money to save.

Value investing sooner in life is the value of time and knowledge and being past everyone when it comes to a young age. Saving for retirement is very important to have the money you need to be financially stable and don’t have to work when you get older.

I haven’t thought of retirement savings right now. My parents save for the day they stopped working. I learned from my mom that the retiring population is bigger than ever before. Also its the only time when you no longer owe anybody money. I think Americans are not saving enough for retirement because the lack of high living expenses and limited access to retirement benefits.

Yes, I have thought about retirement savings. I hope to save enough to retire early and travel. My parents are also saving for their retirement.

I believe Americans are not saving up for retirement mainly because of a few reasons including high living expenses, unawareness of benefits, and lack of opportunity to begin. The amount of people I’ve met who aren’t knowledgable on IRA’s, pensions, and 401k’s is heavily surprising as they can really make a huge difference!

My uncle emphasized the importance of achieving financial independence in retirement. He discussed the need to assess lifestyle choices and spending habits to ensure a comfortable retirement without relying solely on government assistance or family support.

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5 tips to creating a successful savings plan.

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Woman saving money towards her goals.

There are many reasons to save your money. You may be saving for a short-term goal such as a taking a vacation or throwing a party. Or you may have your sights set on something bigger, such as a new home or preparing for retirement. Whether your goal is big or small, the most important step is having a plan to reach your savings goal. However, as we all know, setting your goals and making a plan is the easy part - sticking to that savings plan is the challenge.

Michael Liersch, Head of Advice and Planning at Wells Fargo , provides tips on how to create a savings plan that will stick.

• Start small: Set small, achievable and specific goals for yourself. If your goals are too lofty, it is harder to track progress and stick with it. For example, start small by setting aside $10 per week to put into your savings account and over time as you are hitting your goals consider increasing that amount. This $10 per week will accumulate to $40 per month – seeing your savings grow will inspire you to keep going.
• Get out of your head . Liersch believes that when money goals are all in your head, it can all seem too big, broad, and scary to properly conceptualize. “Behavioral science shows that feeling overwhelmed can cause human beings to be inert or do nothing. To get past that inertia, people need to take all that stuff out of their minds and start to record it either on paper or in a favorite goal tracking capability in bite-sized chunks.” He suggests one option for goal tracking is LifeSync , WellsFargo latest addition to their mobile app. This enables you to name your goals, upload inspiring pictures, connect your money to your goals, and track progress. Whether it’s on paper, in an app or on a custom spreadsheet - keeping a record to track your progress will help you reach those goals and stay accountable.
• Don’t go it alone . Another great way to stick with your goals is to set saving goals with someone else. About half (46%) of Americans in a recent Wells Fargo Money Study said that their family has helped them improve their approach to money. So getting that trusted family member, friend or professional to hold you accountable and celebrate your wins with you goes a long way.
• Reward yourself: When identifying saving goals, Liersch says people tend to emphasize all the things they shouldn’t or can no longer do. According to the study, 43% said that they had a “scarcity” mindset when it came to money. And 60% admitted to over focusing on how much money they have or don’t have. “These feelings of, and focus on, restriction and deprivation can cause you to give up on your savings goals – and ironically make even more dramatic swings toward negative financial behaviors because they feel that it’s out of their control.” Instead, he suggests to focus on being intentional with how you are allocating your money, this includes putting money towards your savings goals while still spending on things that bring you joy. For example, every time you meet your monthly savings goal, maybe take $5-$10 out and go get your favorite takeout burrito. Do something to celebrate the fact that you’ve accomplished what you set your intentions towards. Similar to extreme dieting - in the long run endless constraint will often result in spurts of overspending, while making the choice to treat yourself responsibly will help you learn to celebrate the small wins.
• Prioritize Your Goals: Between retirement, buying a home, and day-to-day expenses, inertia can also come from not being able to choose which goal to save towards. When it comes to goal prioritization, only 13% of participants in the Wells Fargo Money Study said they were extremely clear on how they were going to achieve their financial goals. Liersch recommends starting by naming and describing each goals, and exactly what they mean to you. This can help you prioritize what’s most important. From there, you can plan out exactly how much is needed for each goal and the time line to accomplish them. Finally, he suggests where possible, give even lower priority goals some regular and consistent attention. “Let’s get real… retirement is important, but we all have day-to-day expenses like rent, food, utilities, maintenance and more. So goals like managing spending, managing credit and debt, saving for emergencies or near-term purchases naturally come first.” He recommends figuring out the amount of money you need to dedicate to your essential goals. Then, with what’s left over, try to dedicate even tiny dollar amounts to your more discretionary, less time-sensitive goals. He says it important to do this with regularity and consistency to keep your goals top of mind, help you make at least some progress, and also keep you focused and intentional.

Saving for goals, especially large or long-term ones can feel overwhelming. But if you start small, stay accountable, set rewards and prioritize you can create a savings plan that is manageable, realistic and long lasting.

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Looking to stash some cash? These places offer the highest interest rates and lowest fees.

Interest rate hikes over the past few years have been a saver’s delight, but your return can vary based on where you park your savings.

Your best bet for snagging the highest rate is an online-only personal savings account , which even beat the average rate on a one-year Certificate of Deposit (CD) , according to the Banking Landscape report released Thursday by finance site WalletHub. That study analyzed nearly 2,700 deposit accounts.

And if you need regular access to your money, rates at credit union checking accounts are 65 times higher than those at regional banks, and they charge lower fees.

Credit unions can offer higher rates because of “their small, local, and nonprofit nature, which results in lower overhead costs,” said Alina Comoreanu, WalletHub senior researcher .

Here are more banking trends and tidbits to help you get the most out of your cash:

Learn more: Best current CD rates

Where are the highest savings interest rates?

Online savings accounts continue to beat their brick-and-mortar counterparts by a wide margin. Their rates are 4.9 times higher than their branch-based counterparts and 3.7 times more than traditional checking accounts, WalletHub said.

A few banks recently lowered their online rates. But with the Fed remaining in higher-for-longer mode on interest rates, most online banks should keep their online savings and money market rates steady, said Ken Tumin in his Bank Deals Blog earlier this month.

After three consecutive months of hotter-than-expected inflation , economists lowered their forecasts for rate cuts this year to between zero and three from as many as seven at the start of the year.

“A run-of-the-mill online savings account,” yielding 3.84% annually is roughly 24% more than the average 1-year CD of 3.09% annual percentage yield (APY), WalletHub said.

Magic number: The amount of money Americans think they need to retire comfortably hits record high: study

Where are the best checking accounts?

Credit unions have the lowest fees, highest rates and most features, WalletHub said.

On average, they’re 47% cheaper than checking accounts from small banks and 75% less expensive than those from national banks, it said. They also have roughly 1.6 times more features and their rates are 8.1 times higher, on average.

“Credit union members are also shareholders, which means that profits are returned to members in the form of better rates and lower fees,” Comoreanu said. “This is in contrast to banks, which aim to generate profits for their stockholders.”

To save money, consider electronic statements wherever you bank. The cost of receiving a paper statement grew by 8.95% over the past year, WalletHub said.

Where are the highest CD rates?

Again, credit unions win across all maturities, from three months to five years, WalletHub said. National institutions were the lowest across the spectrum.

Regional banks were second with the best rates in shorter maturities (three months to one year), but community banks ranked second for two-, three- and five-year CDs.

Specialty checking accounts

• Business accounts are the most expensive and offer the lowest rates, WalletHub said.

They’re 87% more expensive than branch-based personal checking accounts and 5.6 times more expensive than online-only personal checking accounts, the report said. Their interest rates are generally 66% lower than personal accounts and have 68% fewer features than online-based personal accounts.

“Small business owners who aren’t looking for business-specific features should gravitate to personal banking options whenever possible – much like with credit cards,” WalletHub said.

• Student checking accounts have the lowest fees, making them 73% less expensive than their general-consumer counterparts. “But lower fees come at a cost,” WalletHub said. Interest rates offered to students are 84% lower than those for the general population.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [email protected] and  subscribe to our free Daily Money newsletter  for personal finance tips and business news every Monday through Friday.

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How to Manage Your Money as a Student

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How much money Americans in their 50s saved in 2023—and 3 ways to save more

With retirement on the horizon, saving in your 50s can be more stress-inducing than in previous years of your life. 

In fact, when compared with those in their 20s, 30s and 40s, Americans in their 50s put away the least amount of money last year, saving an average of $4,780, according to data from New York Life . People in their 30s saved the most, with an average of over $9,800 saved.

Americans in their 50s also fell short of their goal of saving around $5,630. This could be due to several financial drains on this age group, such as supporting children or helping elderly parents make ends meet, says Wes Shannon, a certified financial planner at Brazos Wealth Advisors. 

Some people in their 50s also "still have never learned to live within their means," he says. "They just live a little too flashy or too much above what their real income is."

You can still take steps to save more even if you're struggling with these burdens. Read on for three strategies Shannon recommends to put aside more this year. 

1. Watch the pennies and the dollars

Cutting small expenses can help you save more in the long run, Shannon says.

He recommends looking for little savings opportunities wherever you can, like cutting cable or curbing the amount of times you use Uber Eats and cooking at home more.

"It's the little things like that that eventually add up," he says. "After a while, a person who has not been saving, when they start saving it kind of compounds itself… and it feels good, they want to save more."

2. Consider downsizing

If your children have moved out, it doesn't always make sense to pay for a big house that sits mostly empty, Shannon says. 

Instead of paying to heat and cool a 4,000-square-foot house, keep up with landscaping or maintain a pool, consider moving to a more cost-effective home to save more of what you would be spending on upkeep of a large home.

"Downsizing makes sense," Shannon says, and moving to a condo or a townhome "can help reduce overall expenses."

3. Increase your 401(k) contributions

Retirement may be a decade or so away, but putting more cash into your retirement accounts now will help you down the line.

Shannon encourages his clients in their 50s to increase contributions to their 401(k)s first. 

"If they are not already making the maximum contributions, I encourage them to increase it by one half of each pay raise they get," he says. "So if they get a 3% raise, increase the 401(k) another 1.5%."

This can become easier as children leave the nest and no longer require as much financial assistance. Shannon also recommends putting the cost of those previous expenses into your savings, as "making small, regular increases adds up significantly."

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4 Easy Ways to Save Money on Google Storage

Clean your digital files this spring instead of paying for more storage.

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You don't have to pay more for digital storage.

Google Drive, Google's cloud storage service, has over 2 billion active monthly users, according to Google partner Patronum . And if you're one of those people, you might know you're account gets only 15GB of free space. That storage can fill up fast though, and when it does, you'll see a message asking you to upgrade to a  Google One plan. But you don't have to spend any money on more storage. Instead, here are some tips on how to free up some room in your digital filing cabinet for free.

We recommend trying these tips on your desktop rather than a mobile device, as you'll have an easier time sorting through and managing files. But we'll walk you through both processes if you have access only to a mobile device.

1. Delete large files first

If you want to keep the majority of your items in Google Drive and Gmail, you can free up space by sorting each service by file size and deleting only one or two large files instead of a few dozen smaller items. Deleting one or two videos that take up multiple megabytes of space is easier than sorting through hundreds of old documents of similar file size to decide which can be deleted.

Delete files by size in Google Drive

Here's how to delete files by size on your desktop.

1. Log in to your Google Drive account. 2. Click Storage in the menu on the left side of the screen. 3. The Storage page should list your files from largest to smallest, but if not, click Storage used on the right side of the screen. The files should now be ordered from largest to smallest. 4. Click on the large files you want to delete to select them. You can select multiple files by holding the Shift key on your keyboard. 5. After selecting the files for deletion, click either the trash bin that appears near the top of the screen, or click and drag the large files to Trash on the left side of the screen. 

However, you're not finished when the items are in the Trash . From there, click Trash on the left side of the screen to go to the Trash menu. Then, click Empty Trash on the right side of the screen, and then click Empty forever .

You can also delete files by size on your mobile device. Here's how.

1. Open your Google Drive app and log in to your account. 2. Tap Files in the bottom-right corner of the screen. 3. Tap Name underneath My Drive near the top of the screen. 4. Tap Storage used . This will arrange your files from largest to smallest. You can select My Drive and then  Storage used  again to list your files by smallest to largest. 5. Tap the three dots ( ... ) next to the item you want to delete. 6. Tap Remove then Move to trash.

Google says in the app that Items in your Trash  are deleted forever automatically after 30 days. But if you want to speed things up and empty your trash now, here's how. 

1. Tap the hamburger icon (three stacked lines) in the top-left corner of the screen next to Search in Drive .  2. Tap Trash . 3. Tap the three dots ( ... ) in the top-right corner of the screen. 4. Tap Empty trash .

Whether you need to make more space, or just to keep your Gmail tidy, it's easy to make room for storage in the service.

Delete files by size in Gmail

You can also delete your files by size in Gmail. Here's how on desktop.

1. Log in to your Gmail account.  2. Type has:attachment larger:10MB  into the search bar and hit Search . This will show you all emails that have attachments larger than 10MB, from largest to smallest. You can use this format to filter by other size files, not just 10MB files. 3. Check the boxes to the left of each email you want to delete, then click the Trash icon across the top of your screen. It should be under Conversations . 4. Click Trash on the left side of the screen to go to the Trash menu. If you don't see Trash , click More  and Trash should be in the expanded menu.  5. Click Empty trash now at the top of the screen.

You can delete files int he Gmail app in a similar way, too. Here's how.

1. Open your Gmail app and log in to your account. 2.  Type  has:attachment larger:10MB  into the search bar and hit  Search . This will show you all emails that have attachments larger than 10MB, from largest to smallest. You can use this format to filter by other size files, not just 10MB files. 3. Tap into the email you want to delete. 4. Tap the trash bin icon across the top of your screen. 5. Tap <  in the top-left corner of your screen. 6. Tap the hamburger icon in the top-left corner of the screen next to Search in mail .  7. Tap Trash . 8. Tap Empty trash now .

Note that once a file goes to Trash , it'll automatically delete after 30 days.

2. Empty your Gmail spam folder

It's easy to forget about emptying your spam folder, and it can take up unnecessary data in your Gmail account. Emptying your spam folder -- and your social or promotions folders -- is another way to make space.

Here's how to empty your Spam folder on desktop.

1. Log in to your Gmail account. 2. Once you're logged in, click Spam on the left side of the screen. If you don't see Spam , click More and Spam should be in the expanded menu. 3. In your Spam folder, click Delete all spam messages now . 4. Click OK in the pop up.

And here's how to empty your Spam folder in the mobile app.

1. Open the Gmail app and log in to your account. 2. Tap the hamburger icon in the top-left corner of the screen next to Search in mail. 3. Tap Spam. 4. Tap Delete all spam messages now or Empty spam now.

Don't let spam bog down your Gmail.

3. Clean up your Google Photos

Google also includes Google Photos in the 15GB of free storage it gives its users. Photos and videos can take up more space than text-based files, especially higher-quality ones, so it's a good idea to go through and delete old photos and videos to make room.

There's no option to arrange your photos and videos from largest to smallest like in Google Drive and Gmail, so you'll have to go through and delete items manually. You can check how much space a file is taking up by selecting it and clicking the "i" for information from the top menu. 

Here's how to delete photos and videos from Google Photos on your desktop.

1. Open and log in to Google Photos . 2. Scroll your mouse over photos and videos you want to delete and click the gray check mark icon in the top-left corner of the photo or video. Do this to as many photos and videos as you want. 3. Click the trash icon in the top-right corner of the screen. 4. Click Move to trash . 5. Click Trash on the left side of the screen. 6. Click Empty trash near the top-right corner of your screen. 7. Click Empty trash again, and you're set.

And here's hot to delete photos and videos from the Google Photos mobile app.

A note for Apple users: If your Gmail is linked to your iCloud account, the two digital storage spaces may be also linked. This means that when enabling the Backup & sync feature on Google Photos, all your local photos on your iPhone will be displayed on Google Photos. If you delete a photo on Google Photos, then the local photo on your iPhone will also be removed. And when the local photo is removed, it won't show up on iCloud. You'll be able to tell if this is you when you try to delete an image on Google Photos -- a pop-up window will let you know you're about to delete from both places.

1. Open and log in to Google Photos. 2. Tap the photo or video you want to delete. 3. Tap the trash can icon in the bottom-right corner of the screen. 4. Tap Delete .  5. Tap Library in the bottom-right corner of the screen. 6. Tap Trash . 7. Tap the three dots ( ... ) in the top-right corner of the screen. 8. Tap Empty trash . 9. Tap Delete . 

If you don't click or tap Empty trash on either desktop or mobile, the photos and videos you've deleted will automatically be deleted after 60 days. 

Bonus tip: You can reduce the file size of some photos and videos in Google Photos. Doing so will allow you to regain some space, but it will reduce the quality of your media. You can learn more about this from Google Support here .

Photos and videos in Google Photos can take up a lot of storage.

4. When all else fails, download your files to your desktop

If your storage is still almost full and you can't part with any more items from your Google Drive, Gmail or Google Photos, you can download your items and store them directly on your computer.

Here's how to download all your Google files for storage on another hard drive.

1. Open and log in to your Google Drive or Google Photos account on your desktop. 2. Select the files or photos you want to download. 3. Click the three stacked dots in the upper-right corner of your screen. 4. Click Download . Note that Gmail will download messages as a .eml file. 5. Once the items are downloaded and moved onto your hard drive, feel free to delete them from your account and empty your trash bins.

You can download emails from Gmail in much the same way, but you have to download your emails one at a time. While this makes downloading your emails more tedious, but still possible. Here's how to download your emails from Gmail.

1.  Open and log in to your Gmail account on your desktop. 2.  Click into the email you want to download. 3. Click the three stacked dots in the upper-right corner of your screen. 4.  Click  Download . Your emails will download as a .eml file. 5.  Once your emails are downloaded and moved onto your hard drive, feel free to delete them from your account and empty your trash bins.

For more, check out these 10 Gmail tips and tools , nine Google Drive features you might have missed and five Google Photos features to try now .

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