America Saves Week is Feb 21 - 25, and FSB is reminding consumers that building a financial nest egg can help alleviate stress and provide financial resiliency during times of economic distress or uncertainty.

More than a third (36%) of consumers do not have sufficient savings to cover a $400 unexpected expense, according to the most recent Federal Reserve Economic Well-Being of U.S. Households report. And American’s personal savings rate in Q3 2021 (9.6%) was roughly half the size of the Q1 2021 rate (20.0%), according to the Commerce Department.

Saving is an important component of creating financial wellness to weather life’s twists and turns. As your trusted financial advisor, FSB wants to help and can provide a financial check-in that can put you on the path to financial freedom so you can reach your financial goals and build financial security.

Try the following tips to help boost your savings:

  • Pay yourself first. Many employers offer automatic payroll deduction, which is one of the best ways to start and keep saving. Use those funds to build a retirement fund.
  • Create a spending plan. Unlike a strict budget, a spending plan is a guide to help you take control of your finances by tracking where your money goes so you can prioritize your spending.
  • Start small. Setting aside just $2.99 a day (the average cost of a daily cup of coffee) for one year can boost your emergency fund by nearly $1,100 annually.
  • Build a financial cushion. Strive for an emergency savings of six to nine months of living expenses.
  • Put your tax refund to work. Last year, more than three quarters (86 percent) of Americans planned to use their returns for savings or paying off debt.

Other important factors to consider when choosing where to place your savings:

  • Access. How quickly can you retrieve funds? Community banks use the latest technology to allow consumers the freedom to access their money when and where they need it.
  • Safety. Is your money protected? The FDIC insures deposits up to $250,000 per depositor and $250,000 for certain retirement accounts. No one has ever lost a penny of FDIC-insured funds.
  • Earnings. How much will you earn? Community banks offer competitively priced products and services.

“As financial stewards, community banks are a great resource to help Americans finance major purchases and create generational wealth,” ICBA President and CEO Rebeca Romero Rainey said. “We encourage consumers to experience the benefits of relationship banking and put their money to work at their local community bank—vested in the success of their customers and their communities.”

This blog is intended to be an informational resource for readers. The views expressed on this blog are those of the bloggers, and not necessarily those of FSB. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. FSB does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog.