Savvy Savings

Interactive Video

[An older couple sitting on the couch together looking at a colorful bar graph on a piece of paper with a laptop on the table in front of them.]

Narrator: Ever wondered how much money you should aim to save? [Thought bubble appears with text: “How much money should I be saving?”]

[Question with a text entry box.]

What do you think is the recommended amount of money per year to save? 

[Twelve calendars pictured with six of them in color.]

The recommended amount is having at least three to six months' worth of expenses stashed away, just in case. But, in truth, the answer really depends. 

[Two parents walking down the street, each holding a hand of the child they are swinging between them.]

Each person’s situation is unique and can change a lot over time. The important part, no matter what, is to save as much as you can manage each month. [The text, “Save as much as you can manage each month,” appears.]

[A pie chart divided into thirds with two-thirds highlighted.]

Statistics show that more than two-thirds of the people in the United States have a savings account but about half of those accounts have $5,000 or less. 

[Chart with 3 icons in the shape of people. One person is highlighted.]

And one out of every three people have $1,000 or less saved. So, everyone has room to up their savings game and make some improvements. 

[An older couple sitting on the couch together looking at a colorful bar graph on a piece of paper with a laptop on the table in front of them.]

Saving money provides a financial “buffer” and helps reduce the stress of the great “unknown.” 

[The word “savings” with an “x” over it appears next to the picture of the couple.]

It provides a cushion for if and when the unexpected happens. [A dollar sign flies in and bounces off of the word “savings.”]

[Picture of a young man holding and looking at his smart phone that has a shattered screen.]

If you have some money saved up, you’re less likely to be left scrambling to figure out how to pay for something when unexpected expenses pop up. 

[A target appears.]

Saving money also helps you make progress towards big purchases and plan for the future. [An arrow flies into the bullseye of the target and the word “savings” appears.]

[Picture of a man working on a tablet.]

Make sure you’re using net income numbers. [A circle appears around where the dollar amount would be on the check. The text, “Separate expenses,” appears with three images: an apartment, a lightbulb, and a medical bag.] Then it helps to separate expenses into fixed, variable, and periodic categories. [The apartment is labeled “fixed.” The lightbulb is labeled “variable.” The medical bag is labeled “periodic.”] Pick an average amount for varying expenses and build in some money for periodic bills. 

[A picture of a paper and pencil appear.]

A budget doesn’t have to be fancy; you can use pencil and paper [the pencil starts moving around the paper], a worksheet [a worksheet appears], or an online tool.

[Picture of a man using his cellphone to view his bank statement.]

Whether you’re dreaming of a shiny new vehicle [motorcycle icon appears], your own place [apartment icon appears], continuing your education [graduation cap icon appears], or even retiring early [beach with a calendar icon appears], saving any amount you can is a great start toward achieving those goals. 

[A bank appears with a pile of money going into it and the text, “savings account: $150.”]

If you put your money in a savings account, you may be able to earn a little extra on your savings. [Savings account balance changes to $157.] That’s because some savings accounts earn interest so your money can grow. [A bar chart appears with the bars increasing from left to right.] The bank or credit union pays you for letting them use your money. [An arrow appears above the bars of the chart marking their growth and labeled “interest.”]

On the flip side, if you don’t have enough savings [the bar chart disappears and the savings account balance changes to $50], people often end up borrowing money [money comes out of the bank and the balance changes to $500] and paying interest to lenders just to get what they need or want. [Double the amount of money goes back into the bank with the text “interest paid to lenders.”] 

[A smiling couple sitting on the couch looking at a calculator the man is typing on with one hand. The man is holding a couple of papers with his other hand.]

The point is saving money should become a regular part of your monthly financial routine. [Text appears: “Saving money should become a regular part of your monthly financial routine.”]

[Picture of four jars full of cash. Each jar has a label: car, house, education, and investment. A person is putting cash into the house jar.]

Strive to make it as routine as paying your rent or mortgage.