Our Top Financial Tips: Save, Spend, ShareThe month of April marks not only National Credit Union Youth Month but also National Financial Literacy Month. To combine the two, we decided to bring you our top financial tips in the same way we share them with our youngest members. It’s as easy as Save, Spend, Share.
It all starts with saving! Think of it as paying yourself. Each pay period, save what you can until you’re able to save the recommended 10% of your income. You can start with $5 per pay period and continue to increase that amount over time. It all adds up. Your ultimate goal is to have 1-2 months of cash reserve for unexpected expenses. Set up a separate Savings account at BHFCU and make an automatic transfer every week, or whatever works best for you. If it’s automatic, you are more likely to stick with it.
There are two types of spending, needs and wants. We recommend creating a budget to account for your reoccurring monthly expenses (necessities like utility bills, rent/mortgage, and groceries) and estimate your spending needs. This will help you understand what’s left for your wants. BHFCU’s Money Management tool includes a personal budget builder to help get you started.
Plan ahead and save for your wants. With a plan, you’ll be less likely to overspend. When in doubt about discretionary spending, remember the latte factor. At two lattes per week, you’ll spend a little over $30/month, totaling nearly $400/year. We’re not saying don’t ever treat yourself, but if you cut it to one latte per week, you will save $200 in a year!
Now that you have planned for saving and spending consider sharing a small portion of your income. A donation to your local shelter or animal rescue goes a long way. Be sure to do your research before donating to any organization.
Sharing doesn’t have to mean donating; it can also mean thrifting. Working on a home renovation? Consider visiting ReStore to look for gently used items. In need of new workout gear? Stop by your local second-hand store to see if they have what you need in stock.
Save, share, spend is a conscious decision to take control of your finances. Make decisions today that will positively impact you tomorrow.
Did you know we offer two programs specifically tailored to promote youth saving and financial literacy? Money Mammals and VIBZ include educational materials, games and prizes, and even scholarship opportunities. Learn more today!