Financial Literacy for Everyone

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Get Savvy at Saving

How your money can work for you

Make saving a habit.

Making smart choices with your money is the first step toward becoming fiscally fit.

The key to being a saving success is making it a regular habit. By saving early and often, you’ll set yourself up for a brighter financial future. Whether it’s a dollar a week or $10 a month, start saving now. A portion of the money you earn from allowance or pet sitting should be set aside for your various goals. These goals can be categorized as short-term, medium-term or long-term. You can reach your goals by saving your money over time.

Short-term goals Medium-term goals Long-term goals
Art supplies Tablet, smartphone, or laptop College fund
Music lessons Holiday spending money A car
Sports equipment New bike Space camp

Did you know?

If you save $5 each week, you will have $260 by the end of the year.

Sharpen your saving skills.

It’s tempting to spend all of your money as soon as you earn it, but you’ll be better off in the long run if you save a portion of it.

The easiest way to save is to pay yourself first. That means setting aside a certain amount of money you earn and keeping it in a savings account. Remember to not save so much that you can’t enjoy an after school snack or activity with your friends, but not so little that you aren’t contributing to your savings every month.

What are you saving for?

Watch your money grow!

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Saving

It’s all about interest

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Talk to your parents about opening up a savings account so that you can start saving!

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The longer you leave your savings untouched in a bank, the more your money will grow.

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When you open a savings account and deposit money into it, the bank will increase your savings by a certain percentage every year. This is called interest.

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Compound interest is when you earn interest on both the money you’ve saved and the interest you earn. The average savings account interest rate is 0.06%.

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See how 1% interest will increase your savings over the course of three years when it is compounded monthly:

Year Balance Balance + Interest
1 $600 $603.26
2 $1,200 $1,212.58
3 $1800 $1,828.02
Compound interest can have a dramatic effect on the growth of your money over time. Determine how your savings will grow with this interest calculator.