Financial Management - Savings Accounts

I think everyone should have a savings account, even children.  Most banks and credit unions offer no fee bank accounts for children.  Regularly putting money into a savings is a fantastic habit to develop and it is never too late to begin a habit if you are not one who already does this.  I keep one savings account.  It is the account I've had for ages and my checking account as well as a small line of credit is all tied to that one account which makes it easy to track and manage.  Every payday, before anything else gets paid, I contribute a planned amount to that my savings account.  I keep myself on a pretty tight budget and once the bills are paid if there is anything leftover I will often add that to my savings as well.

I save my change in a jar and every once in a while, about once a year, I will count it up and take it to the bank to deposit into my savings account.  I am always surprised each time with how much change I actually save up in that jar.  Every little bit really does add up.

I map out savings goals each year - emergency funds, travel funds, project funds, planned expenses (my annual car insurance bill), etc.  In order to keep track of those funds I keep a running tally on a spreadsheet so I know how much money is in each "fund".  If I ever use the money in that fund I begin working to replace it as in the case of my emergency funds or for a planned upcoming expenditure.  Even once I hit all of my financial goals I keep saving or I create new goals.

Adding money to the account and watching that balance grow is empowering.  For me it just makes we want to keep doing it and growing that balance.  Hitting those milestones and saving up for something you want like a family vacation or new furniture is really exciting.  Not having to put things on credit when you need things is even better.

I have often heard people say they "can't afford" to save money.  My thought is you can't afford not to.  No matter what circumstance we find ourselves in we need to figure out a way to set aside money into savings.  I can't stress enough the importance of having and regularly contributing to a savings account.  Especially during hard economic times.  We can't afford not to.