Financial Literacy: Saving

Saving money, even just a little bit, is super important when you don’t have much. It’s like putting away some of your snacks for later when you’re really hungry. When you save a little bit, it helps you be ready for unexpected things that might happen, like needing new shoes or fixing something that breaks. Saving, even a tiny bit, can make a big difference when you really need it.

A good way to start saving is to put a little bit of money aside every time you get your paycheck. Like every time you get paid, take one bill of 20, and put it in a special place. If you do that every week, you will have saved 1,000 dollars after a year.

The amount you save is not as important as doing every time. If 20 dollars a week is too much, try 10 or 15 dollars a week. If you get paid every two weeks, put away 30 or 40 dollars every time you get paid.

When to Use your Savings

Savings are for emergencies, for very special situations. You do not want to use your savings until you absolutely have to. Examples for when to use your savings:

• You get sick and need to pay for a doctor.
• You have to go to the hospital and need to pay your hospital bill.
• Your car breaks down and needs an expensive repair.
• You lose your job and need to pay for food while you look for a new job.
• You have an appointment on your immigration case and need to pay for a taxi to get there.