When we get money the initial instinct is to spend it. We will see an opportunity to purchase something that we want such as a new jacket, computer game or a car. Once we give the person or company the money we will then get the item but be in need to get more money. This can become a problem if we don’t really manage our money correctly. When talking to bankers at local institutions such as Columbia Bank Voorhees Township, we have learned some cool tips and tricks about how we can best manage our money and finances.
|900 White Horse Rd, Voorhees Township|
|NJ 08043, United States|
|Phone: +1 856-772-9300|
Setup a savings account
The best thing that you can start doing to save money is to setup a simple savings account. A savings account is an account at the bank that when you put money into it will draw interest. This is similar to getting paid for doing work. The main difference is that the money is doing the work for you.
Savings accounts are great since they teach us about money. They start to build our skills and our understanding of money. Each month you will get what is known as interest. This interest is a percentage of the money that you have in the bank. If you have a dollar in bank and you are making ten percent interest, then you make ten cents each month.
CD’s and High interest accounts
Once you have mastered the understanding of a savings account you can start to move money around into a CD or another type of high interest account. These accounts are where you will need to have some extra money to play with. However, over time you will get a better interest rate than if you were to just have it in a savings account. So, for example, you could be making three percent on a savings account and twenty five percent on a Money Market.