Saving Early: Key to Successful Future

For Johnnie Lovett, a Young Illinois Saver, saving has been a habit since he was a teenager. “As a teenager, I was responsible for buying certain things with my allowance,”

the Illinois State University junior said.

“I found out I wasn't always able to buy the things I wanted.” His parents introduced him to the concepts of budgeting, saving, and money management. He has taken that advice to heart and is now regularly saving.

Saving is important for young adults, Johnnie said. “As young adults, we don’t realize how much money we have our hands on because we’re constantly spending.” He said his parents taught him that “saving is a habit and it’s essential to living.” Those lessons were reinforced in the financial literacy classes Johnnie enrolled in through his school and business program.

Like most college students, Johnnie has to balance his needs and wants. To deal with temptation, he saves first prior to spending. He then makes a list of the things he needs and the things she wants and gives himself a budget for both. He also keeps $200 in a separate account, not in his checking or savings, in case of emergencies.

As part of his regular savings plan, Johnnie allocates money towards his short-term and long-term goals. One of his long-term goals is to purchase a house when he graduates. “Owning a house is part of my long-term financial plan, so I’m putting aside money towards a down payment now,” he said.

Realizing that saving is habitual, Johnnie says the best way to get started saving is to start small. “The best way to save is to pick a goal amount, such as a percentage or dollar amount, and save that out of every paycheck. Stick to your goal, rather than trying to save an entire paycheck, which isn't realistic,” he said.

 

Take the Pledge

I pledge to save money, reduce debt, and build wealth over time. I will encourage my family and friends to do the same

Take the America Saves Pledge

Tip of the Day

  • Have questions about how to file taxes in your 20’s? Here are 6 easy steps from #BetterMoneyHabits: http://bit.ly/2iH8ICq @AmericaSaves

Share Your Tip or Story

And if we feature you in our newsletter, you get $25.

Share

Saver Stories View all »

Getting Out of Debt

In 2004, Tonya Shelton was facing financial ruin. Barely making more than minimum wage and having lost her home to an unexpected family crisis, Shelton and her family were forced to live in a rundown hotel.

Read more...

Challenging Herself to Save

It all started when Marchale Burton overheard Alabama cooperative extension colleague Isaac Chappelle, coordinator of Alabama Saves, explaining how saving just a little bit – even change – is all it takes to become a saver. “I thought about that,” Burton said, “and wanted to see if it would work.” So, she challenged herself to see how much change she could save.

Read more...

Transforming “I Can’t Save” to “I Will Save”

You will not believe what it took to completely change my life. About three years ago, the HR Administrator of the corporation where I worked (as a temp with no benefits) forwarded an email to me. Fifteen seconds. One small act of kindness. That's it - that's all it took!

Read more...

Receive Updates

Sign up for Texts

Sign Up

Sign up for Emails

Get Emails

Take the Pledge

Start Saving