GET SAVVY AT SAVING

MAKE IT A HABIT

Making smart choices with your money is the first step toward becoming financially fit.

The easiest way to save is to pay yourself first. That means setting aside a certain amount of money you earn and keeping it in a savings account. The key to saving successfully is by making it a regular habit. By saving early and often, you’ll set yourself up for a brighter financial future.

It’s important to save money for a rainy day, just in case you need it for any unexpected expenses like a broken laptop. Another portion of the money you receive should be set aside for your various goals. These goals can be categorized as short-term, medium-term or long-term. You can reach your goals by saving your money over time.

SHORT TERM

Art supplies
Musical instrument
Sporting equipment

MEDIUM-TERM

Tablet, smartphone, or laptop
Holiday spending money
New bike

LONG-TERM

University
A car
Holiday

DID YOU KNOW?

IF YOU SAVE $5 EACH WEEK, YOU WILL HAVE $260 BY THE END OF THE YEAR.

SHARPEN YOUR SAVING SKILLS

It’s tempting to spend all of your money as soon as you earn it, but you’ll be better off in the long run if you save a portion of it.

Think about a short-, medium- and long-term savings goal and determine how much you can save each month toward each goal. Remember, the amount that you contribute per month toward your goals can’t be more than you earn that month. Then calculate the cost of your goal divided by your weekly contribution to find out how long it will take you to reach each goal.

Short-term goal (1 month)
What item are you saving for?
How much does your goal cost?
How much will you contribute weekly? 5 1 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
Calculate

Medium-term goal (2-12 months)
What item are you saving for?
How much does your goal cost?
How much will you contribute monthly? 20 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 125 130 135 140 145 150 155 160 165 170 175 180 185 190 195 200
Calculate

Long-term goal (over a year)
What item are you saving for?
How much does your goal cost?
How much will you contribute monthly? 100 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500
Calculate

WATCH YOUR MONEY GROW!

Saving It's all about the interest

Savings accounts enable you to keep your money safe and help it grow with interest. You can open an account and start saving at any age with the help of your parents.

The longer you leave your savings untouched in a bank, the more your money will grow. You should limit how often you withdraw money from your savings account and only do so if you really need it.

Compound interest is when you earn interest on both the money you’ve saved and the interest you earn.

The average savings account interest rate is currently 0.06%, but can vary between financial institutions and over time. If you save a little each week, your savings will grow over time with interest.

Compound interest in action

Let’s say you deposit $50 into your savings account each month at a 1% interest rate. Each year, the interest you earn will help your savings grow. See how 1% interest will increase your savings over the course of three years when it is compounded monthly:

Year	Balance	Balance + Interest
1	$600	$603.26
2	$1,200	$1,212.58
3	$1,800	$1,828.02

Compound interest can have a dramatic effect on the growth of your money over time. Determine how your savings will grow with this interest calculator.

How will your savings grow?
Initial balance or deposit
Interest rate you expect to receive on your savings %
Amount of savings you will add each year
Number of years 5 1 2 3 4 5 6 7 8 9 10
Calculate

TRUE OF FALSE? The longer your money is in a savings account, the more money you'll earn.

True False

Correct!

Continue

Not quite. In a savings account, your money accumulates interest, so you'll have more the longer it stays in that account.

Continue

TRUE OF FALSE? The easiest way to save your money is to pay yourself first.

True False

Correct!

Continue

Not quite. It’s easy to pay yourself by putting a portion of what you earn in a savings account.

Continue

TRUE OF FALSE? Compound interest is when you earn interest on both the money you’ve saved and the interest you earn.

True False

Correct!

Continue

Not quite. Compound interest is when you earn interest on the money you’ve saved as well as the interest you earn.

Continue

TRUE OF FALSE? The interest rate on a savings account decreases as you deposit more money.

True False

Correct!

Continue

Not quite. As you deposit more money into a savings account, the interest rate increases.

Continue

TRUE OF FALSE? A university fund is an example of a short-term goal.

True False

Correct!

Continue

Not quite. A university fund can take a long time to save up for.

Continue

You’re now a savvy saver!

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