Saving+Money

$AVING MULA

Section 2: Different Saving Options
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**__ Section 1: How to Open A Savings Account __**
Opening a savings account is very easy. It only requires a little personal information and some money you can deposit into the bank to get your account started. In general, a bank requires the following in order to open a savings account:

- a completed opening account form - a form of identity - proof of address - a mandate form - 2 passport photos - a completed KYC form - $50 deposit to start the account

However these requirements may be slightly different depending on the bank. For instance, some banks have varying start-up deposits.

=**__ Section 2: Different Saving Options __**= __**Savings**__ A savings account gives interest. You can access it whenever you need money. You can access it through the ATM or bank teller. If you need money immediately, you are allowed to take it out. There is some limits on how many times you take out money.

__**Checking**__ Checking is when you do not get interest. You can have a debit card for the account, and also write checks. This account is easily used for bill paying. ATM which stands for Automatic Teller Machine, allows you to withdraw and deposit money from your accounts.

You can withdraw money using checks, ATM, electronic debts, including other methods. In a checking account there is unlimited withdrawals and deposits. Checking accounts do not offer a high interest rate. Some banking institutions charge a small fee, or some don't charge one at all.

__**Certificate of Deposit**__ A Certificate of Deposit, or a CD, is a low-risk investment a person would make using money they may not have a current need for. During the investment you leave the money alone which translates into earning a slightly higher interest rate compared to a checking account or money market. A CD is said to be one of the safest investments you can make. There is a predetermined interest rate that can't be changed, you are guaranteed to get all of your money back, and in the case of the bank going under your investment is insured by the FDIC for up to $250,000. = = =**__ Section 3: Why Save? __**= Why save money you make or get? Well there are many good reasons to put that gift money or paycheck aside and save it:

1. Retirement- If you want to retire one day, saving your paychecks is very important. The more money you build up, the more secure you can feel when you retire. 2. Education- If you are planning on going to college saving your money is a top priority. When you get out of school, a majority of students will be hit with loan payments. If you save your money, you may not suffer huge deficits and you can potentially stay out of debt or get out quicker.

3. Buying a Home - Once you're out of college and have a job, you may want to put your hard earned money into buying a home, and starting a family. Houses are not cheap, and may take a while to save up for. So, if you start saving your money early you can buy sooner.

4. Emergencies- You do not know what to except in life, it is always good to have some money saved up incase you get hit with a unexpected bill. Whether its a car accident, a hospital bill, or if something happens with your home, it is good to have some money saved up so you are not in trouble financially.

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=**__ Section 4: Difference between a Bank and Credit Unions __**= A Credit Union is a member owned financial co-operative. They are created and operated by its members and the profits are shared between its owners. You can join Credit Unions if your part of a religion or workplace. Credit Union's offer higher rates. When you deposit funds into the Credit Union, you become a partial owner and are apart of the union's profitability. They are formed by large cooperations and organizations.

A bank is where share holders own it. It is a financial institution that is licensed as a receiver of deposits. A bank is usually used for basic checking and savings account, CDs and mortgages.

Some banks give you the option to deal with your money online. It can create money by giving loans. It is also very critical to our economy.

=**__ Section 5: Kill Your Debt __**= Simply calculating how much you spend each month on your debts will illustrate that eliminating debt is the fastest way to free up money. Once the money is freed from debt payment, it can easily be re-purposed to savings. Plus, the sooner you pay off debt, the less interest you'll pay, and that money can be saved instead.

= = =**__ Section 6: Set Savings Goals __**= For short-term goals, this is easy. If you want to buy a video game, find out how much it costs; if you want to buy a house, determine how much of a down payment you’ll need. For long-term goals, such as retirement, you’ll need to do a lot more planning (figuring out how much money you’ll need to live comfortably for 20 or 30 years after you stop working), and you’ll also need to figure out how investments will help you achieve your goals.
 * If you choose to start saving before you completely pay off your debt, however, look into consolidating your debts so that you're not paying as much interest.
 * The only money-saving that should take precedence over getting out of debt is to create an emergency fund (setting aside enough money so that if you lose your income, you can survive for 3-6 months). If you don't already have an emergency fund, you should start contributing to one immediately.

=**__ Section 7: Make Smart Purchases __**= When making purchases make sure you have sufficient funds to make that purchase. Only by things that are 100 percent needed and if you have enough funds you can buy some things that are not needed in life. Making smart purchases will do nothing but help you save money because you are not spending money all the time for things that are not needed.

=Peer to Peer Advice:= Saving money is one of the most important thing you can do, not only in the time before college, but through out your entire life. It provides piece of mind which is a lot more valuable than you may think. Most kids think they don't need to worry about finances,budgets, etc until they are adults. This is the sad truth about today's youth. While saving money gives you piece of mind and money you can use to buy things, it also allows you to make money. Opening a savings account with a local bank as early in life as possible! It can earn you a decent sum of money in the long run, and you don't even have to do anything. The rule of thumb when it comes to a savings account is depositing 10% of each paycheck. However, as a high school and college student I would recommend depositing at least 25% because obviously your paycheck isn't going to be as much as the average adult worker.

Learn about a new program to help you save:
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=Learn more about different options of saving:=

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