National Savings Day + 6 Tips To Teach Fiscal Responsibility
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Did you know that there’s a day dedicated to saving money? National Savings Day is a great opportunity to learn better savings habits and to reflect on saving (and spending) habits.
Whether the next step for you includes saving some loose change or participating in a 401(k) program, you’ll be thankful you decided to prioritize your savings. We’ve put together a guide to help you take advantage of National Savings Day and included a bonus section on how you can teach your kids some helpful money-saving tips. Check it out below!
What Is National Savings Day?
National Savings Day was created by Capital One and recognizes those who value the act of saving, reminding us that getting started isn’t as difficult as it seems. The point of the holiday is to empower people to feel more confident about their relationship with money by educating them on how saving can be a simple and straightforward experience.
When Is National Savings Day?
National Savings Day lands on Oct. 12, however, people are encouraged to treat every day as National Savings Day. Once you establish a consistent saving routine, you’ll be able to enjoy greater security in life and manage money stress. Spend Oct. 12 educating yourself and your loved ones on the importance of saving and implementing some of our favorite tips.
How Can I Make the Most of National Savings Day? 6 Tips
If you’re wondering how you can make the most of National Savings Day, we’ve compiled a list of money-saving advice that can help you get on the right track. Implementing these tips into your everyday life will make a huge impact later down the road and will help set you up for success. Check out our favorite tips on how to start saving money below.
1. Create a Budget:
Though creating a budget may seem tedious and intimidating, it’s truly the most effective way to keep track of your savings. If you don’t have a budgeting system in place, try using the 50/30/20 rule.
This rule suggests you divide your income as such: 50% of take-home pay for needs, 30% for wants and 20% for savings. Doing this will help you hold yourself accountable with your spending and keep yourself on track.
Pro tip: Track your expenses using a spreadsheet or use a budgeting app.
2. Save for Retirement:
When it comes to saving, thinking ahead is crucial. This is where retirement funds come in — the sooner you start saving, the more money you’ll have when you reach 65. We recommend you start saving as soon as you get your first job.
Pro tip: Open a 401k and start investing early so you’ll be set for retirement.
3. Start an Emergency Fund: If something catastrophic happens, you’ll want to make sure you’re prepared for any unexpected expenses. This can be anything from a leaky roof to a serious injury, causing you to scrape together any leftover money you might have.
Pro tip: Set up an automatic sweep from your checking account into emergency savings.
4. Set up automatic saving: Once you’ve established how much money you have leftover after paying bills, you’ll be able to gauge how much you can put into your savings account. You can start small with $20 per month, then increase it in increments as you get more comfortable.
Pro tip: Start small when saving, then increase the amount in increments over time.
5. Save unexpected money: There will be times when you get unexpected money, whether it’s a tax return or a bonus check. This is the perfect opportunity to stash that extra cash away into your savings account for more important expenses later on.
Pro tip: Immediately add any unexpected money to your savings account — don’t spend it all!
6. Hold off on impulse purchases: Refrain from making impulse purchases. If you see something that catches your eye and you immediately want to throw it in your cart, consider waiting 24 hours. Sleep on it, and if you still want it after a day, then get it! Read more on our blog about saving money and perceived obsolescence.
Pro tip: Sit on the item for at least 24 hours, and let that determine whether it’s worth the purchase or not.
8 Ways To Educate Your Kids About National Savings Day
Now that you’ve got some money-saving tips in your tool belt, it’s time to pass some advice along to your little ones. Teaching kids the importance of saving is a big life lesson and something that they should learn about sooner rather than later. Even if it’s something small, like putting a couple coins in a piggy bank, it’s still a step in the right direction!
1. Make a Savings Jar:
Kids tend to be visual learners, which makes a savings jar a great option for the family. Watching the pile grow within the jar will help kids stay invested and want to throw their own money in there. Add some creativity by having the kids decorate their jars with stickers!
2. Save Up for a Big purchase: Next time your kids have a big purchase on their wish list, help them brainstorm ways they can save up for it. Help them create a goal and work toward it until they’re ready to get that new video game!
3. Host a family saving competition: Saving may not always be fun in the short-term for kids, but who says it can’t be? Host your own family saving competition by seeing who can save the most in a given amount of time. Each family member gets a jar and the first person to fill it all the way will be crowned the winner.
4. Help them host a yard sale: Yard sales are a great way to get the kids involved and teach them how to get rid of old things. Help them clean out their rooms and set up their own little yard sale with old clothes and toys. Not only will this instill a sense of responsibility, but it will teach them the value of money.
5. Give Allowances: Reward your kids with money after they do their chores, like taking out the trash or cleaning their room. By giving them a commission rather than an allowance, you are teaching them that money is earned.
6. Take your Kids to Donate Toys: Once your kids understand the value of giving to others and the value of money, they’ll be more keen to save, especially when money is given to them.
7. Have them Set Savings Aside for College: Stress the importance of saving money for education and get the kids started early. Once they reach the age where they go off to college, it’ll be a relief for them (and you!) to know they have college savings
8. Teach them about credit cards: When your teen reaches the age where they can get their own credit card, it’s easy for them to think that it’s free money. It’s important to teach them the risks associated with credit cards and how to responsibly use credit.
Feeling inspired to improve your saving habits yet? Celebrate National Savings Day on Oct. 12 by implementing some of your favorite saving habits into your everyday life. Not only does this set a great example for your kids, but you’ll be thankful when retirement comes around!
We hope that you found this blog helpful. Our content is not intended to provide business, legal or financial advice. For specific advice about your unique circumstances, consider talking with a qualified professional. Capital One Shopping does not endorse or guarantee any information or recommendation listed above.
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