Page 41 - Book4E

CHAPTER 8
Savings Accounts
At the risk of sounding too facetious, the purpose of a savings account is to save money. It’s not rocket science, but the trouble is, for too many Americans it’s one of the most difficult things to do. We seem to spend virtually everything we earn and have nothing to fall back on when the inevitable emergency hits, other than the
unused balances on our credit cards.
So let’s face it. We’re all much better
off if we establish and follow a budg-
et, live within our means, distinguish
between needs and wants, and regularly
and consistently add money to our
savings account and watch it grow. Here’s
a quick review of different types of
savings accounts designed to meet a variety of needs and savings goals. If you regularly save money, congratulations! If not, today is the day to begin.
Traditional or Statement Savings Accounts
Any wise financial advisor knows it’s never too early to learn how to save. With a traditional or statement savings account, you can start your emergency fund, an education fund for your child, or even a future vacation. To help you save, you can even set up automatic transfers from your checking to your savings account.
When people ask me if I have any spare change, I tell them I have it at home in my spare wallet.
—Nick Arnette
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