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Financial Literacy
Course: Financial Literacy > Unit 2
Lesson 3: Saving money- Why and how to save
- Why and how should I save money?
- Planned and unplanned expenses
- I am ready to save. What is the next step?
- Saving wisely: emergency fund
- Emergency fund
- Saving wisely
- Saving wisely: planned expenses
- Paying yourself first
- Pay yourself first
- Paying yourself first
- What are different types of savings accounts?
- What is interest and how does it work?
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Why and how should I save money?
Learn the reasons and strategies for saving money.
Saving money is very important for a number of reasons. First, it allows you to have a safety net in case of emergencies. For example, if you suddenly lose your job or have an unexpected medical bill, having money saved up can help you avoid falling into debt.
Another reason it's important to save money is so you can reach your goals. If you want to buy a car or a house, save for college, or travel to a new place, it often takes time to save up enough money to do those things. By saving regularly, you're taking steps towards achieving those goals.
How do I save money?
There are many different methods people use to set money aside. Here are a few examples:
- Some people automatically deposit a certain percentage of their paycheck into a savings account, so they don't even have to think about it each time they get paid.
- Others keep a piggy bank or jar at home, where they add their spare change each day or week.
- Another strategy is to create a budget and designate a certain amount each month to put into savings.
- Some people use apps or services that "round up" their purchases to the nearest dollar and put the extra change into a savings account.
- Finally, some people use specific goal-setting strategies. For example, they might save all dollar sign, 10bills they receive, or try to save dollar sign, 5 every day for a month.
How you choose to save money is up to you, as long as you are saving.
Want to join the conversation?
thanks for this information! maybe I'll finally become a doctor and my dad will be proud of me!(21 votes)
I am sure your dad loves you and is proud of you. After all, you have become what he raised you to be. Even more importantly: Do what makes yourself proud and loved. Otherwise, you will be chasing something that is out of your control.
The best of luck to you.(16 votes)
- Investing and watching my money grow is too boring, even with Subway Surfers.
I'm gonna buy a battleship, and start plundering other ships. Let's bring back the pirate times(5 votes)
From which bank will you borrow the funds to purchase the ship? Have you investigated the costs of buying and owning a ship, paying a crew, and providing ammunition for your piratical plans? Maybe you should start saving.(13 votes)
Why don't people save as much as they would like to, or what to? why is it so hard for so many people to get the concept of saving their money? How can I get better at saving money?(6 votes)- Well you can get better at saving money by knowing exact what you need and want and then eliminate SOME things that you know you don’t need, then put that money that is extra towards saving. The reason it’s so hard for people to save money is because there is so many things you can get with certain amounts of money, so for example if someone has extra money from their job and they already know SO MANY THINGS THEY WANT, without self control and being educated right they will try and get everything they want that they can in that moment. Because of this cycle, people have a hard time saving money sometimes.(10 votes)
- I like to save money So I can get some cool stuff(6 votes)
are yall in coledge or something(6 votes)
I would recommend maybe buying things with cash and whatever your change is in coins left over put it in a safe place and let it grow. I did this when I was 16 years old to 18 years old. I only used cash. Obviously this won't work for online purchases, but everything else in person will work. Gas stations, grocery stores, movie theaters etc. Whatever my change was after, I just put the coins in a jar. Two years went by and I took it to the bank and I had over $200.(6 votes)
Wat up Bailey? Do u still save your change Now ?(1 vote)
- not really a question but i love the fact this course actually tells you stuff. i have recently been trying to get smarter about financial stuff and i have read a couple books one was by tony robbins and the other by dave ramsey and both of them would often say "in this book you will learn how to save and get wealthier faster but that is mostly all they say in the books they dont actually really teach you that much its 500 page book that could be summed up in 100 or 150.(6 votes)
- My family used to have a huge filtered water jug in which we all put spare change and small bills. If I were to propose we restart this jar, would it be an efficient way to save money for a 'rainy day'?(5 votes)
- No. That's not a rainy day fund, because it's built on "spare change". A rainy day fund (or emergency fund) is built on paying into it first, not last. I can imagine myself stopping at the gas station on the way home and filling up the tank, using the change from a $50 bill to get a candy bar before putting what was left back into my pocket to put into the jug. Can you see yourself doing something like that?(2 votes)
- how to be a millionaire(3 votes)
- This is the wrong course for you.(4 votes)
- how much money should i save?(3 votes)
- 20% until you have your emergency fund full, and somewhere between 10% and 20% after that.(1 vote)
