smart money strategies
Saving Money on a Shoestring
Affording college sometimes requires financial sacrifice, but this is also a great time to set aside savings in case of an emergency or to work toward your goals. One painless way to save is to “pay yourself first.” This is easy to do using direct deposit. How does direct deposit work?
- Each time you make a nonessential purchase, you also deposit three dollars directly in your savings account.
- Each time your paycheck is deposited into your checking account, the bank or credit union transfers an assigned amount into your savings.
- Each time you withdraw cash from your checking account, you also transfer an assigned amount directly into savings.
“B” is correct. Because these funds are automatically deducted from your checking account, you don’t miss them. Even small contributions add up over time.