Building a Savings Accounts

Every dollar counts!

A healthy savings account should be top priority in every household. Whether you're single or married, with or without children, a savings account is a necessity not to be ignored. A savings account can help you and your family survive a job lay-off, economic downturn, unexpected bills and more. Building a savings account can be surprisingly easy and can have little affect on your day-to-day life if you follow certain steps.

Things You'll Need

• A jar
• Savings account

Instructions

1. Make a monthly budget that includes a set amount for savings. No matter how tight your budget is, you can find a way to put $5 or $10 a month into savings. Make a budget and include the amount that you feel is most achievable for savings.

2. Compare rates for savings accounts at your local banks and banks online. When you find the bank with the highest interest rate and lowest annual fees and minimum balance, open your account.

3. Put your coupon, rebate and rewards savings into your savings account. Whenever you purchase an item with a coupon, put the amount of the coupon (the amount you saved) in a jar. Do the same for any purchases you make using credit card or reward program reward coupons. Put the money in the jar in your savings account every month. Deposit any rebate checks you receive into your savings account immediately.

4. Deposit cash presents into your savings account. Show Grandma how much you appreciate her gift by letting it earn compounded interest!

5. Decrease the amount of money you spend on buying presents. Whether it's a going away present, donation to a Boss's Day gift, or Christmas presents, reduce your spending on gifts by 10 percent and put that difference in your savings account. No one will miss that 10 percent, but your savings account will keep on growing.

6. Go to the library. Not only do libraries loan out books--they also have newspapers, magazines, CDs, audio books and movies. Start using your local library as a savings treasure trove. Cancel your movie delivery services and borrow movies from the library. Stop buying CDs and MP3s and borrow them to make sure you like them.Cancel magazine and newspaper subscriptions and read them at the library. This could add major funds to your savings account.

7. Buy used items. Not every purchase you make must be new. Your local Goodwill or other thrift shop may offer fantastic savings on barely used small appliances, furniture, tableware and more. When you buy items used, try to determine what you saved over buying new and deposit the difference in your savings account.

Tips & Warnings

• Even $5 a month will add up. Save something--no matter how little.

• Do not keep your savings in your home. Open a savings account and do not ask for a debit card to access the funds.

Resources

• Savings Accounts
• How Savings Accounts Work