Savings Race Financial Education Packet - Wright-Patt Credit Union

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Pay yourself first. Take 5 to 10 percent of your check, treat it like another bill, and bankit.Enroll in your company's tax-deferred, 401(k)-type plan. Take advantage of youremployer's retirement programs with stock options, tax-deferred growth, or automaticbond purchases. Seek advice from a Certified Financial Planner (CFP) about whatinvestments or saving vehicles would be best for your situation to meet your savingsgoals.Unless there is an extreme emergency, try not to touch your savings. Try to live withinyour means.Savings TableBy developing a savings habit, you can watch your savings grow to financial security.Below is a chart tabulating just how quickly your money can add up for you!Investment OpportunitiesWhatever savings vehicle you choose, there is no reason to limit yourself to just one. Thefollowing are several investment opportunities that could help you get well on your way.Savings AccountsThese accounts allow you the most flexibility. You may pay into them or withdrawwithout interest rate which varies according to your financial institution. Emergencyfunds should be kept in savings accounts.Money Market Mutual FundsIn these accounts, shares are purchased directly from the company by an agent orinvestment company. The cash of the mutual investors is pooled together and diversifiedthrough an investment portfolio earning a higher interest rate. This is good for long-andshort-term goals.Individual Retirement AccountsIRAs allow you to set aside a percentage of your salary to make tax-deductible paymentsto your own financial institution. You do not pay taxes on this money until you withdrawit. This type of savings is only good for long-term goals.Certificates Of DepositCertificates are fixed time deposits that are payable when your money matures at the endof a specified term ranging from one month to 10 years. Generally, the higher the term,the higher the interest rate. CDs are beneficial for short-and -long-term goals because youpick the length of time.
Where Should I Put My Savings?Banks, savings & loans, credit unions, and investment companies all offer savingsoptions. Shop around for interest rates, reliability, methods of computing interest, andinsured funds for safety.Savings PitfallsDon't attempt to save by having extra taxes held from your paycheck for a larger refundat tax time. This costs you because the government pays no interest on your money andyou don't have access to it when you may need it.Don't double up on house or insurance payments unless you have savings equal to at leastthree months of expenses.Don't use U.S. Savings Bonds for short-term savings. Bonds do not pay the face valuefull amount until the time expires.
Page 3: Savings is SecurityWhy Save?Financi
Page 7 and 8: 5. Pay off higher interest rate car
Page 9 and 10: How to Establish CreditCredit is a
Page 11 and 12: companies do not report your credit
Page 13 and 14: Cheaper ratesAnother upside to life
Page 15 and 16: Say you're 22, earn $30,000 a year
Page 17 and 18: hours before making a purchase will
Page 19 and 20: Most people are used to having taxe
Page 21 and 22: Annual BudgetPer MonthSources of In
Page 23 and 24: ClothingPurchases $Laundry $Dry Cle
Page 25: A Wealth of Resources at Your Credi

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