DIVISION OF FIRMS

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National Association of Black Accountants, Inc.
M ney ense
Savings
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Savings
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What is saving?

• Money set aside for short term goals

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Saving and Investing The Difference

• Saving is to put aside or reserve
• Investing is earning a return on your money

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Saving Goals

• Pay yourself first
• Resolve to spend less
• Create an emergency fund
• Make saving a priority

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Saving Your Money

• Any good financial plan includes two types of
  savings plans
• A set-aside account which serves two purposes
• 1. Providing a safe place to set the money aside
  that you know you will need for future payments.
• 2. It makes that money work for you by earning
  interest.
• A nest egg account savings plan for the
  purpose of accumulating the money needed to
  achieve your financial goals
• Provides a certain degree of comfort that money
  will be available if some unexpected expense
  should occur in the future.

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Saving Strategies

• Start small
• Contribute to your retirement plan
• Save through payroll deduction plans
• Set up an automatic investment plan
• Round up your mortgage

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Saving Strategies

• Bank your raises
• Keep paying off a loan
• Pay off your credit cards
• Keep track of where the money goes

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Saving for a Purpose
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Saving Options
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SAVING YOUR MONEY

• Any successful financial plan includes a regular
  savings plan, no matter how small.
• Getting into the habit of saving is just as
  important as how much you save.
• After your financial situation is more stable,
  you will be in the habit of saving.
• Remember, if you can just find a way to save just
  20 per week, every week for a year, you will
  have saved 1,040 after one year!
• After five years you will have saved 5,200!

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Remember

• The amount saved is not as important as saving on
  a regular basis!
• The more time you have to save, the more savings
  you will have at the end of the time period.
• The more income you choose to save, the more
  savings you will have at the end of the time
  period.
• The higher the interest rate the more savings you
  will have at the end of the time period.

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Activity

• Getting Started with Your Savings Habit
• (See handout)

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Final Point
Make Saving a HABIT
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Financial literacy isnt just a matter of
knowing what you have and knowing your options.
It is a matter of planning for lifes milestones.
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Thank You!

• National Association of Black Accountants, Inc.
• M ney ense
• For more information visit www.nabainc.org

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360 Degrees of Financial Literacy

• 360 Degrees of Financial Literacy is a national
  effort of the CPA profession to improve the
  financial understanding of Americans. It
  provides a comprehensive approach to financial
  education, focusing on the information Americans
  need at every life stage, from childhood to
  retirement. CPAs volunteer their time and
  expertise to educate members of their communities
  about financial issues.
• Visit www.360financialliteracy.org for tools to
  help you make sound financial decisions.