Piggy banks have been around for not just years, but centuries. The term began as a reference to regular old jars, made out of a type of clay called pygg, that people used to save their pennies.
Today, you can find piggy banks in all shapes and sizes, made of ceramic, metal, porcelain, plastic – you name it. Some even have an electronic or battery feature that will count your coins as you insert them, tallying up your total so you know how much you’ve saved toward your goal.
Still, it’s clearly not the most effective way to save. Not only is it too easy to access your cash, it’s also too easy to spend your bills before they ever make it in the slot. Then there’s the little issue of interest – if you’re not earning some return on your money, you’re actually losing cash to inflation.
These days tools that will help you save automatically, and programs that speed your progress. Many are focused on saving for college, but others are multi-purpose. Here’s a run-down of the ones I’m liking right now:
Upromise is one of many programs that works by depositing money in your college savings plan when you shop at certain retailers or buy certain products. You register your credit or debit card with the company, and then they track your usage, giving you a small kickback when you make a qualifying purchase. Does that mean you should buy a new couch so you’ll get the cash back for college? No. But if you need – and can afford – a new couch, and you have a choice between a retailer that works with Upromise and one that doesn’t, you might want to spend your money at the participating retailer. The program is free, and you can invite friends and family to join as well and donate their rewards to you. Upromise partners with 600 online retailers, 8,000 restaurants and over 21,000 grocery stores.
LittleGrad. This service works much like Upromise, but your shopping must be done online. You sign up on the website, and in the process, either open a free 529 college savings plan or input the information for your existing plan. You then download a savings software that earmarks a percentage of every eligible purchase so it’s automatically transferred to your 529. Like Upromise, friends and family can sign up as well and contribute to your account. LittleGrad has partnerships with about 2,000 online retailers.
SmartyPig is an online savings account with some perks to help you reach your goals faster. You set a goal – say, next summer’s vacation, your husband’s birthday present, or that new couch – a timeframe, and an amount you need to reach that goal, and SmartyPig does the math to tell you how much you should contribute on a monthly basis. That amount will automatically be deducted from your checking account each month and placed in an FDIC-insured savings account until you reach your goal. You can set multiple goals at a time, a perk in my book because when you save for everything in one big pot, it’s too easy to spend the money earmarked for your emergency fund on your vacation instead. Once you’ve reached your goal, you have the option of receiving the cash plus your interest (accounts are now earning 2.01% APY) on a retailer gift card (a good option if you know exactly where you’re buying that couch, not so good if you don’t) or as a transfer back into your checking account. Often, retailers will kick in a bonus for putting your cash on their gift card – Kohl’s, for example, will give you an additional 5%.
ING Direct. This is another online savings account, no bells and whistles, save for one thing – it allows you to set up multiple accounts that act as sub-accounts, or pots, so you can prioritize your savings goals and keep your money separate. Each account is free, and you can set up automatic transfers from your checking account each month or even week. So say you want to save $50 a month for next year’s vacation and $25 a month for a new television – that money will be automatically withdrawn from your checking and placed in the appropriate sub account. You can track all of your accounts on the same screen and transfer money between sub accounts as needed. ING Direct is currently offering a 1.30% variable APY.
Piggy banks have been around for not just years, but centuries. The term began as a reference to regular old jars, made out of a type of clay called pygg, that people used to save their pennies.
Today, you can find piggy banks in all shapes and sizes, made of ceramic, metal, porcelain, plastic – you name it. Some even have an electronic or battery feature that will count your coins as you insert them, tallying up your total so you know how much you’ve saved toward your goal. In my family, growing up, we had a big red bull bank – but we called it The Pig.
Still, it’s clearly not the most effective way to save. Not only is it too easy to access your cash, it’s also too easy to spend your bills before they ever make it in the slot. Then there’s the little issue of interest – if you’re not earning some return on your money, you’re actually losing cash to inflation.
Whether you’re saving for this summer’s family vacation, or getting a jump on the holidays, these days there are tools that will help you save automatically, and programs that speed your progress. Many are focused on saving for college, but others are multi-purpose. Here’s a run-down of the ones I’m liking right now: More…
Last week I was on Today with Stacy Morrison, editor of Redbook magazine. We talked about things you can do to keep that holiday budget of yours under control (the first thing, of course, is to actually have a budget. If you’re not sure what the appropriate amount is for you to be spending, use my holiday budget calculator).
I bring up this segment again because I love some of the tips Redbook collected from its readers, and I wanted to share:
“I buy sets of things and break them up. Last year on QVC, Valerie Parr Hill was selling sets of holiday candles that came with gift bags, tissue, and tags. I bought a set of five and broke them up into five individual gifts.” —Denise Gaylord, 55, New Bern, NC
“Board games make great family gifts: one gift for four people! I once gave Scrabble to a family, and they loved it because they began spending a lot more time together. Monopoly is another classic.” —La’Tonya Hocker, 34, Bowling Green, KY
You can read the rest of the Redbook piece here.
Happy Holidays!!
Did you know that the average American household spends a whopping $2,200 on electricity each year? Using a power monitor can slash your bill by nearly 20%. Watch the video below to see how much I was able to save on my electricity bill by using one.
QUESTION: “I’m a single, pre-kindergarten teacher that loves her job but I have trouble making ends meet, especially during the summer months. I get paid twice a month—roughly $1,200 each paycheck. My take home pay per year is about $24,000. What can I do during the school year so I can live comfortably during the summer and not worry about my finances?”
-Jennifer, New York
ANSWER: Summers off, lots of vacation time, a nice benefits package…being a teacher definitely has its perks. In fact, according to MetLife’s annual Survey of the American Teacher, 62% of teachers surveyed said they were very satisfied with their careers.
The downside to teaching? Once the summer rolls around the paychecks stop appearing in your mailbox, making budgeting—at least for a few months—a bit of a headache.
According to Danny Kofke, author of “How to Survive (and Perhaps Even Thrive) on a Teacher’s Salary,” “paying yourself” is the key to staying afloat during the summer months.
In your particular example, in order to pay yourself, More…
Today’s Mini Money Makeover candidate had what every financially secure person should have-a savings to fall back on in case of emergency. The problem? All of her money was going into that savings account. She was scared to invest. Her money wasn’t working to make her more money. Have the same problem? Watch the video below for some helpful tips.
