Recap: The importance of saving

Your coaches summarize the key points you've learned in this lesson.

AliciaCongratulations! You’ve learned a lot about saving, and why it’s the first step of good money management.

CassieNot only that, you’ve learned some common-sense ways to save more, save more often, and earn more interest on the money you save.

AliciaNow it’s up to you to make it happen. These are a few key points we hope you’ll remember: First, every time you get paid, make it a habit to set some money aside in savings. That way, you’ll be much less likely to spend it; you’ll be prepared for major purchases and the unexpected; and, your money will grow with interest.

CassieThe amount of interest you earn will depend on three factors: the interest rate, how long you keep the money in your account, and how the financial institution pays the interest.

AliciaCompounding is a powerful way to make your money grow faster. The more frequently your money is compounded, the more your money will grow.

CassieAnd here’s one more: when you’re shopping for a savings account, ask about the annual percentage yield, or APY. The higher the APY percentage, the more interest you’ll receive.

AliciaTo sum it all up, savings is an investment in yourself and your own future. Remember: the more time you give your money to grow, the better — so save more starting now.

CassieWe hope you’ll use these — and all of the tips we’ve given you — to create a brighter financial future.

Alicia


In the next lesson, we’ll look at how to be a smart shopper. We hope you’ll join us!

 

Key points

Remember:

  • Saving is the first step of good money management.
  • Make savings an automatic habit.
  • Compound interest makes your money grow faster.
  • The higher the APY, the more interest you’ll receive.
  • Put time on your side. Start saving more now.
  • Invest in your own future.

 
Click the Next button to learn about how to control your finances with a Spending Plan.