AgriLife Extension asking Texans to be part of America Saves Week
COLLEGE STATION – The Texas A&M AgriLife Extension Service is encouraging Texans to take advantage of America Saves Week, Feb. 23-28, by looking at their finances and setting savings goals for the year.
The America Saves Week website states the week is coordinated by America Saves and the American Savings Education Council as “an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status.”
“The primary mission of the Texas A&M AgriLife Extension Service is to help Texans obtain a better quality of life and build a better future for themselves and their families,” said Nancy Granovsky, AgriLife Extension family economics specialist in College Station. “One way to do this is to help them in their journey to find financial security. Saving money is a cornerstone of financial fitness, and that’s why we support America Saves Week.”
Granovsky said some of the many reasons for making savings a habit include being financially prepared for medical or other emergencies, funding an education, having a financial buffer in the event of job loss, funding retirement and avoiding high interest rates associated with misusing credit.
“The ability to buy a home and to build equity in that home is a mainstay of wealth building for the majority of Americans,” she added. “Data from the Federal Reserve System’s Survey of Consumer Finances shows home equity is responsible for nearly three-fourths of family wealth. And while that dynamic is changing, the idea of owning a home as part of the American dream is alive and well, and something millions of Americans still aspire to and need to save for.”
Saving requires a certain amount of control, Granovsky said, which is why it’s easier to set up an automatic savings plan whereby you can pay yourself first from every paycheck.
“Saving even small amounts from each paycheck can make a difference, but it’s always a good idea to know what you’re saving for and plan accordingly,” she said. “Look at your budget to see what your expenses are and what you can reasonably save.”
If you are tempted to use your savings for something else, ask yourself if you are willing to give up or at least delay getting the item you had originally planned to buy, Granovsky said.
She also noted that even though interest rates on savings are currently very low, it’s still better to put this money into a savings account than a checking account because you will be less tempted to spend it.
“Having money in a savings account can also help you get a loan at a lower rate of interest when you need one,” she said.
According to Dr. Joyce Cavanagh, AgriLife Extension family economics specialist in College Station, AgriLife Extension is helping people connect to more money-saving tips, through a new website [website unavailable].
“The website offers links to several America Saves Week opportunities, including a live America Saves Challenge Twitter chat on Feb. 24,” Cavanagh said.
“You won’t be bombarded with loads of messages, but you might find one new idea that will work well for you,” she said.
With a little planning and discipline, almost anyone can get on the road to saving and building wealth, Granovsky added.
She said focusing on financial goals and the time available to reach them will also help determine the amount you need to save and the type of savings vehicle that will work best for you.
“This could be a regular savings account, 401(k), money market account, regular or Roth IRA, or some other way to save or invest, preferably automatically,” Granovsky said.
As a final note, Cavanagh pointed out that with it being near tax time, individuals expecting a refund will have a golden opportunity to save at least a portion of that money as opposed to “spending all of it on a splurge or treating themselves to something they can probably live without.”
