Good News Tucson - A Family Values Publication

WHEN IT COMES TO SAVINGS –
A Little Discipline Goes a Long Way

by Devonne Bishop

Fridays were always a special day in my home when I was a child. After seven long days of designated chores it was the day that my brother and I were rewarded for our work by getting an allowance. My father would call my brother and me into his bedroom, pull out his wallet, and a couple of envelopes, and begin to teach us the valuable skill of saving money. Ten percent of our allowance came out first to put towards our weekly tithe at church. Another ten percent was taken out and put in an envelope marked “savings”. The remaining eighty percent of our allowance was given to us to spend. It was always my father’s hope that by teaching us how to save as children we would know how to save as adults and remain debt-free.

We live in a culture today where the words “debt-free” and “savings” are rarely heard. The “buy now, pay later” convenience of credit cards has taken over our lives. A 2006 US Today Poll states that the average American household has just under $10,000 of debt. In effort to pay our monthly payments, we’ve abandoned the idea of keeping a steadily growing savings account. This thinking couldn’t be more backward. If we had the money to purchase the items that we need and/or desire at the moment we make that purchase, we would be able to stay debt-free and be ready for those moments when the unexpected occurs. Whether you are burdened by debt or debt-free, today is the day to start saving.

Many financial institutions have savings programs. I encourage you stop by and make an appointment with a personal banker to see what options are available to you. Like any new action, it takes a little time to make it become a habit so patience is required. The 10/10/80 plan that my father used to teach my brother and me is a good practical place to start. If 10% of your income towards savings is too high then start with 5%. Any savings is better than no savings. Now comes the hard part. Until you get into the habit of keeping a steadily growing savings account, put a “no spend” policy in effect. A savings account needs time to grow and it won’t be able to do that if money is frequently withdrawn from it. The less you think about the money in your savings account the better off you’ll be. As time passes, your balance will grow making you more financially secure and able to reach your goals and life purpose.

Begin your future planning now by learning how to manage your money well. For information on Crown Financial money management classes available in the Tucson area, visit www.crown.org.