America Saves Week is February 25-March 2
Washington, D.C. (Feb. 25, 2019)
—The Independent Community Bankers of America® (ICBA) and The Farmers Bank, Portland, TN want to remind consumers during America Saves Week that building a nest egg can help alleviate stress and provide additional financial security during times of unexpected financial hardship.
In fact, more than one-fifth (20 percent) of adults are not able to pay their current month’s bills in full, and nearly 40 percent of Americans would have to sell something they own or borrow money if faced with an unexpected $400 expense, according to a Federal Reserve Economic Well-Being of U.S. Households report.
Saving is key to financial stability and independence. As relationship-based lenders, fully vested in the financial well-being of our customers, community bankers are a valuable resource and can help you get on the best path for reaching your short- and long-term financial goals.
ICBA and The Farmers Bank offer the following tips to help consumers boost their savings:
Pay yourself first. Many employers offer automatic payroll deduction, which is one of the best ways to start and keep saving. Use those funds to build a retirement fund.
Create a spending plan. Unlike a strict budget, a spending plan is a guide to help you take better control of your finances by tracking where your money goes so you can prioritize your spending.
Start small. Setting aside just $63 a month (average cost of a daily cup of specialty coffee) for one year can boost your emergency fund by $766 annually.
Build a time cushion. Strive for an emergency savings of six to nine months of living expenses.
Put your tax refund to work. With the average tax refund totaling roughly $3,000, more than half (52 percent) of Americans plan to use their returns for savings, investing or paying off debt.
It is also important to consider these factors in choosing where to place your savings:
Access. How quickly can you access funds? Community banks use the latest technology so that customers can access their money when and where they need it.
Safety. How safe is your money? The FDIC insures deposits up to $250,000 per depositor and $250,000 for certain retirement accounts. No one has ever lost a penny of FDIC-insured funds.
Earnings. How much will you earn? Community banks’ customer service is tailored to their individual customer’s needs and offer competitively priced products and services.
“As proven with the recent government shutdown, community banks continue to be good stewards of their customers financial health, serving as trusted advisors and helping to finance major finance purchases and build financial wealth,” ICBA President and CEO Rebeca Romero Rainey said. “We encourage consumers to bank locally with a community bank and realize the community banking difference today.”