Young Adult Saving
Did you know you can save money through spending? Try comparison shopping, do your homework and consider quantity purchases only when it makes sense. Remember you want value for your money. Each purchase needs to get a second look. Is it a want or a need and then determine if you really need it.
The Balanced Money Formula is very simple! It's a fantastic rule of thumb that will enable you to save money easily and conveniently. It teaches discipline.
- 20% goes straight into your savings at EKC
- 50% of your income goes toward your needs – things you have to have, rent, car loans, things of that nature
- 30% goes toward things that you want
Your First Car: Should you save or use credit?
Save: $150/month × 20 months = $3,000 — pay cash for vehicle
$150/month available for insurance, maintenance, gas, etc. (winter tires, repairs)
Borrow $3,000 × 10% × 24 months = $147.25/month or $3,534
Payments of $147.25/month PLUS insurance, maintenance, gas, etc. (winter tires, repairs)
As you save you create many benefits for yourself. They include:
- benefits of a relationship with your credit union — helps when you need a loan
- future financial freedom
- build credit
- risk management
- credit protection
- future rewards
- helping others
- stress release