saving spending and credit
Saving through Direct Deposit
One painless way to save is to “pay yourself first.” This is easy to do using direct deposit. How does it 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, your bank or credit union transfers an assigned amount into your savings account.
- Each time you withdraw cash from your checking account, you also transfer an assigned amount directly into savings.
“B” is correct. This is an easy way to build a nest egg. Even small amounts contributed regularly will add up over time. And guess what? Because the amount is automatically deducted from your checking account, you won’t miss it.