Begin Your Savings Journey This Financial Literacy Month
As Financial Literacy Month kicks off, the importance of building a solid financial foundation is in the spotlight. Governor Andy Beshear has rallied Kentuckians to start forming or reevaluating their saving strategies, emphasizing that it’s never too late to start managing your finances better. Whether you’re just starting or looking to improve your financial strategy, this month serves as a critical time to focus on your financial health.
Overcoming Financial Hurdles in Kentucky
A report by the Federal Deposit Insurance Corp (FDIC) highlights that 5.2% of Kentucky households were without a bank or credit union account in 2021, which is slightly above the national average. For Kentuckians without a bank account, beginning with opening a savings account is essential. The FDIC provides essential information and steps to help individuals understand and navigate the process of opening an account, underlining the importance of being integrated into the banking system.
Strategies to Maximize Your Savings
Developing a robust savings plan is crucial once you have a bank account. According to the national initiative America Saves, individuals with a structured savings plan are twice as likely to save successfully. They recommend starting with creating an emergency fund that should cover six months of income, ideally kept in a savings account for easy access during emergencies. To make saving more engaging, consider turning it into a fun activity, such as setting challenges for yourself or treating yourself to small rewards as you reach your goals.
Furthermore, setting up automatic savings can make the process effortless, ensuring a portion of your income is saved without having to think about it each month. If saving seems daunting, begin with small, manageable amounts and gradually increase your savings as you become more comfortable. Small daily changes, like saving loose change, can also add up over time.
DFI Commissioner Marni Rock Gibson encourages everyone to just start saving, no matter how small the amount. Starting with manageable goals can build up to significant savings over time. Gibson also recommends regular check-ins for those with existing savings plans to ensure they adapt to any changes in financial circumstances or goals.
In summary, whether you’re starting fresh or tuning up your existing plan, Financial Literacy Month is the perfect time to set your savings goals in motion. Utilize available resources, embrace practical saving tips, and gradually build towards financial independence.