Show Me the Money!

Show Me the Money!

By: Araceli Ortiz

     Saving money can sound daunting. You want to hang out with friends, eat out, and shop; why go saving all those nickels and dimes that could be put to use buying those Vans you've been eyeing for a while? Saving money doesn't have to be difficult. A little bit of money from working, recycling, and even birthday money can be set aside. The dough that you do save up will be beneficial in the long run when you begin to save for college and the expenses that come with it. Making a savings account can help make sure you don’t dip into your savings when you don’t need to, and having money saved up in general can provide a safety net to fall back on in case of emergencies.
     When should you put money away in your savings? Putting money away can be difficult sometimes but adapting one simple habit can a make a big difference. I would encourage any time you get money, whether it is for your birthday, graduation, from chores, recycling soda pop cans, babysitting and/or working, that you put at least half of that amount away in savings. If you have regular expenses each month then consider putting at least 10% of your paycheck away- you may always put away more if you wish.
     You can save your money in your piggy bank, a special container, underneath your mattress, or you may also want to consider opening up a savings account at your local bank. One of the benefits of having your money in the bank are the interest rates; although very low, these few pennies could  potentially make a difference in the long run.
     What should you use your savings for? You can use your savings for anything your little heart desires; however, I would encourage you to use that money for your college expenses. Scholarships and Financial Aid may cover most of your cost of attendance while in college, but remember it may not always cover it all. Having some money safely stashed away may relieve you of some stress. Also, you could use the money to pay other expenses your financial aid may not cover such as study abroad trips, spring break learning service trips, additional classes, or extra-curricular activities. Savings accounts will provide you with a sense of stability and security in times of emergencies.
     Other great resources that may be available to support you in the money saving journey are Individual Savings Accounts (IDA). IDAs are a type of savings account. What makes IDAs special is that you receive an additional deposit each time you add to your savings. This is called a match and is usually one to four times the size of each deposit you make. For example, if you receive a 3:1 match, each time you deposit $25, you will get an additional $75 toward your savings goal. Check with your local non-profits to see if you qualify or visit VIDA OREGON http://www.vidaoregon.org/  to learn more.

Happy Savings!