Do you have a personal savings account?
It might not make for the most exciting topic of conversation, but a healthy savings fund can give you peace of mind and help you work through a crisis, such as a lost job or an unforeseen major expense.
Keep reading to learn about the savings account every millennial needs, the additional savings funds offered at Persons Banking Co. (and how to open one), and how much you should save for a rainy day.
The ONE Savings Account Every Millennial Needs
Picture this: You’ve got a good, full-time job, but you’re living paycheck to paycheck and don’t put any of your earnings into savings.
You’re not exactly rolling in the dough, but you can swing a daily trip to Starbucks and splurge on occasional shopping trips and weekend excursions.
Now imagine you lose your job.
What is your plan? How will you pay your bills? (You’ll definitely have to say goodbye to those daily lattes!)
This is why an emergency savings fund is so important; without one, you could be in for some really challenging times if the unexpected occurs.
On the flip side, with a healthy savings fund, you can sleep a little easier knowing you have a nice cushion in place until you can find another job.
Emergency savings accounts also come in handy for other unforeseen major expenses, such as vehicle, major appliance, or home repairs.
Other Types of Savings Accounts
Persons Banking Co. offers a variety of Savings Accounts.
We not only recommend our customers open an emergency savings fund, but also accounts for vacations and travel, holidays (such as Christmas), and large purchases.
And with so many types of savings accounts, we’re happy to create a specialized savings plan to fit your needs.
- The Christmas Club (for short-term savings)
- Preferred Savings (for everyday savings)
- Health Savings Account (to help defray the cost of medical expenses)
Additionally, we also offer Money Market and Certificate Deposit Accounts, which give you more bang for your buck and are great for long-term savings goals.
How to Open a Savings Account
Savings accounts are quick and easy to open.
All you need is a valid driver’s license and your social security card (if you haven’t memorized your number).
How Much Should You Save
If you do have a savings account, are you saving enough?
According to a survey conducted by Business Insider, while 70 percent of millennials have a personal savings account, nearly 60 percent have a balance under $5,000, which is not nearly the recommended amount.
At the end of the day, any savings is better than no savings, but we recommend everyone have between 3-6 months’ worth of living expenses set aside for an emergency fund.
When determining how much to save, consider the following expenses:
- Personal expenses
If it seems overwhelming, start small until you’re comfortable with the amount you save each month.
Also, talk to your Persons Banking Co. Advisor about a budget and how to build a robust savings plan.
- Savings accounts can give you peace of mind in case of a financial emergency, such as a lost job or unforeseen major expense.
- They can also help you save for holidays, vacations, and bills related to healthcare.
- Persons Banking Co. offers a variety of savings accounts.
- We recommend customers have between 3-6 months of living expenses in their emergency savings funds.
Reach out today to speak with an advisor about opening a savings account at Persons Banking Co.
Give us a call at 877-753-9224 or visit our website to learn more.