Have you thought about what your America Saves Week goal will be? If not, consider making your goal to open or add to a savings account to save for emergencies.
Many of us have savings accounts, but don’t add to it regularly, but having a savings account with funds set aside for emergencies can be crucial to staying out of debt. Take the pledge this year to save $250 or more to be put aside for emergencies. It’s easier than you might think! By simply putting $10 a week into your savings account, you can have an emergency fund with more than $500 at the end of the year!
Each year during America Saves Week individuals pledge to pay off debt, save for a house or a car, or even save for a child’s college expenses. These are all good financial goals, however an emergency fund is critical to their success. Below are a few examples of how an emergency fund relates to each:
If you own a home: An emergency fund can be used to replace a stove or other appliance, a roof, or possibly a floor or wall damaged by water or mold. No one wants these things to happen, but they can, and often do at the most inconvenient time.
If you own a car: An emergency fund is critical to helping to pay for maintaining a car, as well as for a flat tire, broken window, or other unexpected repair.
Taking care of a child’s educational needs: Children have constant school needs including fundraisers, school trips, uniforms, sports and club activities. Wouldn’t it be terrible to have your child accepted to choir or the debate club, or school sports team, then not have the money to pay for their uniform, trip to an annual competition? You also want to make sure that you don’t just save for a child’s college tuition, but also for activity fees, and a way for them to come home to visit during holidays and winter and spring breaks. An emergency savings account can help with all of these.
The America Saves Week theme is “Set a Goal. Make a Plan. Save Automatically!” Make sure you incorporate each of these declarations into your America Saves Week goals and your year-round financial goals so that you are well prepared for life’s unexpected events, and to stay on the path to financial security!