Did you decide to start out this year with the goal of building your savings? Or maybe a summer vacation to the beach, an amusement park, or camping are in your family’s future? Would you like your first or a new home, or maybe just a new (for you) car? Studies show that 54% of Ohio residents have less than $1,000 saved. While financial experts recommend a savings of up to six months’ salary (to cover the loss of salary for a job or medical crisis), but just having $2,000 to cover a small crisis would be a great goal. So what can you do to build your savings?

• One of the best savings methods is to save automatically. With each pay check, or at least once a month, have money moved to a savings account. Another way to do this is signing up for a Christmas or Vacation Account at your lending institution.
• To protect against “Impulse Buys” move to a 24 hour waiting period before purchasing anything except food and gas. If you have to think before buying the latest video game, clothing, shoes, purse, or home decorating item – you will likely decide you don’t really need it a large percentage of the time. Ask yourself “Do I want it or do I need it?” If you just want it, consider if you want the family vacation to Florida more.
• Always think before you swipe your credit card. You may want to consider wrapping your card in a piece of paper that says “Think before using” or “Do I need this?”
• Limit store trips, every additional time you shop you spend on impulse items. This is true of online shopping too, so try to avoid websites that you are tempted to purchase from frequently.
• Collect loose change, but safely store it. An easily visible jar may be a temptation for some.
• Unsubscribe from marketing emails for businesses that you don’t use any more or that may be very tempting. Think about the stores that sell items you like not items you need, and unsubscribe!
• Have a “Do nothing week” or “cutting back week” where you avoid eating out, and going to movies or other entertainment that isn’t free. Look for free things that you can do at a local community center, your parks, or finally play the new games the kids got for Christmas or their last birthday. Put the money you would have spent eating out or at the movies in your savings account instead.
• Teach your children to save by setting up a savings account at the bank. Strongly encourage them to deposit half of their allowance, gift money from family members, or the money they make from selling items at the family yard sale. You may choose to let them save for a larger item over several months or enforce that this savings is for the future – an education fund or for a car of their own.
• Try one of those savings plans where you save $1 more each week, or even $10 or $20 per week. Every little bit helps.
• Every time you get a lump sum payment like a bonus, tax refund, overtime at work, or even birthday money from your parents – save some of it. At least 50% would be great, but even saving $50 – $100 would help build your savings. Check out the “Save Your Refund” site to enter a contest to win one of 100 prizes for those who commit to save at least $50 of their 2018 tax refund (in 2018 this program starts on January 22 and ends April 17, 2018).

Let us know the tricks you have used to build your savings? By leaving a comment below this message.

Writer: Lisa Barlage, Extension Educator, Family and Consumer Sciences, Ohio State University Extension, Ross County.

Reviewer: Tammy Jones, Extension Educator, Family and Consumer Sciences, Ohio State University Extension, Pike County

Sources:

America Saves, Save Your Refund, saveyourrefund.com/.

University of Illinois Extension, More for Your Money, web.extension.illinois.edu/money/saving_easy.cfm.

Louisiana State University and Agricultural and Mechanical College, Impulse Buying on the Internet, digitalcommons.lsu.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=5168&context=gradschool_theses.

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