Saving at Any Age
ByASB February 24, 2021 | 5 min read N/A
Saving is an important step toward overall financial health. From a child’s first account to retirement planning, good savings habits can help you to build savings for life.
Our goal at American Savings Bank is to help you make smart financial decisions. Whether you’re just beginning to save or are ready to tackle some long-term goals, check out the tips below on how to save wisely.
BUILDING HEALTHY SAVINGS FOR LIFE
The key to reaching your savings goals is to set up and follow good savings habits, as soon as you can.
To get started, take our financial checkup to get a better idea of your current financial health. You’ll also receive access to resources customized to fit your biggest financial goals.
SAVING FOR LIFE EVENTS
Do you hope to someday buy a new car, get married, start a family, buy your first home or retire? Planning for big purchases and life events by saving up money can help you to reach your financial goals.
Although your specific strategy may differ depending on your goal, here are a few tips you can follow to build your savings for life:
- Set a Timeline: Write down your future life events and major purchases, then work backwards to determine how much you’ll need to save over time. Setting goal dates can help you to stay motivated and save.
- Estimate Costs: Go over your plans and count up all of the costs involved. Having a baby, for example, includes healthcare costs as well as costs like diapers and baby furniture. Once you have your costs, prepare a budget that you can track over time.
- Start a New Account: Open a savings account specifically for your financial goal – for example, you can have a “House Savings Account” where you contribute to regularly, and refuse to touch until you’re ready to buy your house. Having a separate account for a specific goal can help you to monitor how close you are to reaching it while reducing your chances of spending the money on other things.
- Automate Savings: Use automatic transfers to contribute to your savings on a regular basis. Using your bank’s Online Banking, you can automatically transfer a set amount every time your paycheck is deposited into your account.
- Prepare for the Unexpected: We suggest saving at least three to six months’ of living expenses in an emergency fund. Your emergency fund provides you with a safety net in case you lose your job or encounter unexpected expenses.
TEACHING KEIKI HOW TO SAVE
- As a parent, you can help give your children a leg up by teaching them good money habits from a young age. Opening a savings account in your keiki’s name is a great place to start. You can have your children deposit money they get from birthday or holiday presents into the account.
- Over time, this money grows and could even earn interest. By the time your child reaches adulthood, they should be able to see the benefits of long-term savings.
- Education planning is another smart money move for parents in Hawaii. The sooner you start saving for education, the more time your money has to grow. Consider opening a college fund account for each of your children.
- Depending on the type of account you choose, you might receive access to tax benefits on your savings. Be sure to talk with your tax advisor to determine which account is right for you.
SAVING FOR RETIREMENT
Retiring is an exciting time for many Hawaii residents, yet there may be some worry about the loss of stable income from your job. Planning and saving for retirement is key to maintaining your lifestyle when you retire.
There are lots of retirement accounts to choose from when saving for retirement. Speak with an experienced financial consultant to learn more about different account types. A consultant can help you find which accounts work best for your financial situation and target retirement date.
Ready to start saving for your next big milestone? We’re here to help you get started! Make an appointment to speak with a member of our experienced team at ASB, who can help you to start saving today.
Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion that it is appropriate for readers. The information that is contained in this material is general nature. Readers should seek professional advice for their respective situations.
Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Cetera is not affiliated with the financial institution where investment services are offered. Individuals affiliated with Cetera firms are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.
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