Everything You Need to Know About Savings
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- Опубліковано 6 чер 2024
- In the third episode of The College Student's Guide To Money, Chelsea walks you through everything you need to know about saving money. She'll cover the different types of savings accounts you need, where to store savings for different purposes, and much more.
Americans' emergency savings: www.cnbc.com/2019/01/23/most-...
Emergency funds: www.cnbc.com/2019/10/18/minim...
www.businessinsider.com/perso...
Finance expert: mirandamarquit.com/
Certificate of Deposit: www.nerdwallet.com/blog/banki...
On retirement accounts: www.investopedia.com/articles...
money.cnn.com/retirement/guid...
www.investopedia.com/terms/1/...
investor.vanguard.com/ira/rot...
Where to put your savings: www.moneyunder30.com/best-pla...
www.investopedia.com/articles...
The Financial Diet site:
www.thefinancialdiet.com
Facebook: / thefinancialdiet
Twitter: / tfdiet
Instagram: thefinancia... - Навчання та стиль
With the rampant growth of finance UA-cam channels that seem to heavily target the male demographic (Graham Stephan, Andrei Jikh, etc), your channel is always a breath of fresh air! And your approach feels more realistic & relatable
this channel is more about investing, but investing with rose targets a female demographic if you're interested.
I follow "Investing with Rose" too! Love her straight-to-the-point approach to talking about investing.
I just found Mrs. Dow Jones & her videos are really fun finance videos with a pop culture feel.
Oooh, never knew of Mrs. Dow Jones before. Subscribing now!
I find Graham's videos accessible. and easy to understand.
I started a small emergency fund, which ended up saving me during the pandemic. I was surprised how the advice you guys suggested help me save up so much so quickly despite being in financial trouble. I now have everything under control for now, with a little hiccup that will be resolved in a few weeks, but I've been able to handle everything much better than I could before. I'm really grateful for paying attention to you guys and can't wait to listen to more of the advice you have.
We finally saved about $10k and just this afternoon got the news that my husband needs $7k worth of uninsured dental work done. Thank goodness for payment plans and emergency funds!
nobody cares!
The base of my savings is from what was left over from my financial aid 🙂
I started my emergency fund because of you guys and saved about 6 months worth and qlsp have paid off 4 credit cards(don't judge 😂)
Also throwing my money at high-yield savings and starting to invest ❤
Thanks for another great video!
Edit: also added a retirement fund
Awesome job!
Also savings in the beginning are a very short term thing. You're saving for emergencies for trips for your first car. Don't let nerds discourage you with inflation talk and say that it should always be invested rather than just saved.
@Ask Solomon Anything! [about Saving for College] long term means 5 or 10 years if you ask most finance experts. (You probably already know this, but I thought it'd be good to elaborate for others.)
Chelsea this breakdown was absolutely amazing! I think more people need to start saving early just because of the way that money works!
So true Demetri!
I really needed this channel 10 years ago. Better late than never
Chelsea is the best, so relatable. I am doing my Master's and thinking on being au pair next year. My financial habits changed during my bachelors when I found The financial diet. I am so thankful for this channel.
Bless you!! I’m going into my second year of college, but this will be the first year where I am the sole manager of my money rather than forwarding bills to my parents to manage. This series came at the perfect time! Thank you!!
I’ve been having a problem of feeling guilty every time I take money out of my emergency fund. I’m glad I have it and it’s saved me multiple times. For example, when my washer and dryer broke last month. But I keep feeling bad seeing that number go down and having to clime back up.
I think it's good that you feel quilty. If I wouldn't feel guilty about taking money out of my savings, I would tell myself that every little thing is an emergency. So I think that guilt actually helps to use the emergency fund only when you have absolutely no choice: in a real emergency.
can' t tell you how many times i rewatched the tiny sparkle effect on "Special Tax Advantages"
Thanks for sharing these tips Chelsea! I put all of my short term savings in my offset account so that the interest on my mortgage repayments is lower. Great video, the earlier we start saving and investing the better is very true 😊
Because of covid we being saving more ....don't need shopping, no work transportation, no Tim, no take out..... I cook at home and we eat leftover....I also use everything at home until last drop.... and if I need anything I always by second hand....Saves me a lot....Love it.
The habit of saving(the transformation) is so much more important that the specific amount saved (the destination) for sure. And the best part is, your spending will adjust to your savings. So if you increase your saving rate, you eventually get used to it and dont even notice the drop in available funds because your spending adjusts.
Thank you for clearly breaking this all down! I've heard all of these terms before, but never in conjunction so I wasn't sure what I needed to have vs what overlapped
I wish you could see me nodding my head YESSSSS when you give these tips. You are a blessing!!!
Hi TFD, Thank you! This is so helpful at all levels. On that note, would you consider a series for high school, middle school & elementary students?
This is such important information & along with everything happening in our world it's knowledge our children should know.
Was going to sleep (its 4am where i live) but then i saw the notification and i just had to watch the vid before going to bed 😅😅😅
I'm loving this series!! WFH has helped me pay off my student loans faster - I also find myself paying bigger amounts as I get closer to my goal :)
Its driving me crazy to think how many people just don't save money at least for a rainy day... That why our goal - as a finance UA-cam channels- is to get to more audience! Thank you for spreading the world with this great information!
I love this serie Chelsea, thank you for the great content
Great that you're sharing this series and this episode in particular about how college students can manage and save money.
I do have savings, but when I think about all the types of savings I'm supposed to be doing, it's overwhelming and a bit demoralizing.
i hear what you're saying. Try to focus on the important ones for now: emergency & retirement. once those are in place, you can shift accordingly for other goals as they come up.
Think positive, at least you already started
Your videos are always so easy to understand and so informative, it was good to know the types of savings accounts I should have, how much I should be putting away and when to access it!
thank you Chelsea, TFD, Very nice to learn from your video
Honestly, this is a nice refresher course. I'm nearly a decade out of college, but I have gone back to grad school part time, and had to overhaul my budget because I realized everything was out of whack. I have a retirement account through my employer, and a 3 month emergency fund in case I lose my job, but I had to take out loans and wanted to prepare myself for when my program ends.
Thank you for the detailed breakdown Chelsea!
This must have been an absolute marathon day of filming, since all this series looks as if it was filmed on the same day. Good on ya Chelsea! Thanks for the excellent tips too :)
Your videos have always helped me..thanksss..love from India 💛💛💛
I just LOVE this channel
Always appreciate your video so much!!!!
Super useful and clear!!! Thank you!
Any tips for building a healthier relationship with saving?
I’ve built myself to be upper middle class from a poor household, so saving, deductions, and taxes make me feel like I’m still in poverty, causing anxiety.
Such a good analogy to exercising! I can relate!
How do you access emergency savings in an emergency? Checkbook? Debit card? Or are we assuming we have access to a bank branch/ATM/online banking to move money to a checking account?
I don’t think we should overthink saving, given it is all behavioral, it is simple math. I think writing down the numbers can definitely open our eyes pretty wide 😱 haha
Great series!
The first step to start saving money is to figure out how much you spend. Keep track of all your expenses-that means every coffee, household item and cash tip.
Once you have your data, organize the numbers by categories. Use your credit card and bank statements to make sure you’re accurate-and don’t forget any.
In my country saving ccounts make about 7% to 10% interests every year, thank god
wheere is that ? :P I should move my money
One note for right now though - the yield curve, at least on Marcus where I have my CDs, is inverted - meaning that a 12 month CD will give a higher interest rate than a 2 or 5 year one. So while normally a longer investment does have higher interest rates, it doesn't always
Yeah, current interest rates aren’t great, so banks are only trying for short term CDs at the moment. It’ll also be good to see the rates after a year and consider a longer term CD, which should hopefully be better.
agree - having 3-6 months (lower if the job market is liquid in your profession) in easy access savings is just common sense... just did a video on it and how to allocate money across different pools of savings :)
I really owe it to TFD on how to handle money. Much love!
what is the percentage of my income that I should put towards short-term savings?? if retirement is 10%-15%, should STS be also 10%-15%?
I would love some "high yield savings " suggestions. Which accounts are the best? My bank has always been the worst interest
My Synchrony bank HYS was amazing at 2.25% when I opened it! Highest in the market when I shopped around. Now, it has dropped to 1ish%. Nerdwallet is a great website to compare them all in a neat list with pros and cons
I like Ally Bank because they have the ability to make 10 little savings buckets that you can customize within 1 high yield savings account . I think they’re at about 1% interest rate right now too. They just sent an email that said they were lowing it again a few days ago
I'm with American Express and its also at 1% right now because of the market. I was at 2.05% I believe when I opened.
Could you please make a video on how to finance your own college? I am paying about 15k a year for undergrad, and I have 30k in my bank. I will prob take out loans my 3rd year but want to also have a savings. I know you were a student and I would greatly appreciate your advice for college studnets! Thank you
Look at that new spacious pad!
ALLY SAVINGS ACCOUNT= high yield account at 1.1% interest. Allows you to break up one savings account into buckets for various savings goal (ex: car)
Should I keep my emergency fund in a regular savings account, or the online only high percent savings account?
I put mine in a HYS that is easy to access.
Do you guys have any recommendations on where to start looking for the best savings/ retirement accounts? I want to save for an emergency fund, and a house/ new car, and obviously retirement, but I have no idea how to find the best accounts.
Try Vio bank. It's an online bank and the high yield online savings is 1.11 % .. Marcus.com is good too but Vio has a higher interest percentage. I have an account with both. viobank.com
Hi! Love your channel! Please help me to with this. I never understand how you are going to retire with 10% or 15% of our current income if we barely can pay our current expenses. Thanks!
I only started saving about 3 years ago. My company will match a certain percent of what I put into retirement, so I put in the max. I split my direct deposit so 30% will go into my savings. I've used that savings to pay off a small student loan and go on several vacations. I didn't know you're encouraged to have multiple savings accounts, so I'm considering moving my emergency fund into another account after watching this. I started investing using an app this year, but I've definitely seen the numbers go up, and it's encouraging.
What app do you use?
@@lv9265 Acorn
Please add this to the TFD COLLEGE Playlist
Here is the other, very important reason for keeping your retirement fund in a special retirement account as opposed to a savings account: Inflation. Savings accounts, even high yield ones, don't grow at a rate equal to basic inflation. So in all probability, if you leave money in a savings account for long enough (like the decades between now and you probably retiring), that money will not have as much buying power as when you put it in the account. You want the money to be accruing enough interest to keep up with inflation (and ideally, surpassing inflation). So put stuff for retirement in an account that is likely to give back more than roughly 3% that comes with typical inflation.
As someone who's put enough in money in their emergency fund, if you had to prioritize which savings accounts to start up next, what order would they be? I'd like to save up for a down payment and retirement. So many options of savings account, I'm a little confused. 😳
I would personally put 50% toward retirement for 50% in long term. But it’s up to you what your priority is. Retirement is super important and if you put a small lump now it’s going to accrue interest. That’s the most important thing about it! :) Hope this helps!
Both are definitely good options. Next on my list is retirement because I just got a job that matches my contributions up to 5% of my income. And instead of saving for a down payment I'm going to pay off my student loans.
If you’ve heard of Dave Ramsey, he would have suggested being debt free first (Baby Step #2), emergency fund (#3), then Saving for a down payment (3B), then 15% toward retirement (#4).
Honestly though, I don’t see the harm in saving for the down payment and retirement at the same time
Wateren Bend I guess I assumed this person was debt free if they were asking about saving! Great input.
If you already have an emergency fund, try to then save 50% on retirement and 50% on the down payment.
This has been super helpful, but I think something Canadian-focused can clarify some things for me even more. Does anyone have any Canadian financial literacy suggestions?
Same. I don't have a good similar Canadian resource to share with you, but one thing that has helped a lot for me when watching American content is understand our tax advantages accounts vs theirs because the language is confusing.
401k (US) = RRSP (CAN) : tax-deferred accounts
Roth IRA (US) = TFSA (CAN) : tax-exempt accounts
They're not exact equivalents but pretty close (including contribution limits), and knowing that helped remove a lot of the mystery for me.
Lindsey Cowie thank you so much!
I have a hard time putting my emergency fund into its own account. For some reason I’m afraid to keep it somewhere else
Wait, in the US does everybody have to save for retirement? No retirement money from the government?
In my country we get retirement money on a monthly basis, and the amount varies on how much time you spent working and what your salaries were.
I read it’s not how much you make but it’s how much you SAVE.
It took a global pandemic for people to realize the importance of savings. Even savings is not enough.
No it didn't.....like what kind of statement is this?
I just started saving up so that I have 6 months rent saved when I move out. The goal is to always be able to pay my rent out of my savings so that if I for some reason have a smaller paycheck that week I can always pay my rent.
I'm not religious, but you are doing God's work.
😂 this is spot on
Certainly not a college student (so maybe I shouldn't be commenting at all?), but while I very much agree that savings is important, I find it very helpful to get out of the mindset that non-investment money will actually "earn" anything significant. The interest on so-called "high yield savings accounts" is frankly kind of insulting (Like, "Really, I have this much money and you're only gonna give me THAT much money?!"). And it's absolutely important to still use them because you HAVE to save money...just don't expect the interest-bearing component of the account to do you any favors. These savings accounts are absolutely better than keeping cash because they're much safer and will PARTIALLY offset inflation (but probably not beat it), but I find it helpful to utterly ignore any interest component...I mean even at 2% APY (you won't find one this high in today's market), with $10K saved (which itself is much more than the average person can hope to save for quite some time) you're only looking at about $200 a YEAR (slightly more thanks to compounding, but not much) or a measly $16.67 a month (on a balance of $10K!). I always found this math incredibly demoralizing, especially when I was college age. My advice is to basically just forget interest in savings accounts is even a thing and just use them as places to store your liquid cash because you need to do that, not because your money will grow (on its own) this way. Investments are for putting your money to work for you, not savings accounts.
I’m so with you. It definitely sucks because I need to keep pretty much all of my savings liquid because they’ll go straight to bills for the upcoming school year. I wish I had some to spare for investing, but investing in myself and my education has to satisfy me for now. Utilizing my savings is definitely better than taking out extra loans!
Ally just gave me the monthly finger.
How? Did they cut interest rates again? Lol
Rebecca Anderson-Estrada AGAIN
Yeah my Marcus account went down 3 or 4 times already this year.
Down to just 1.00% now :/
Same with Simple 😩😩
Building up my emergency fund, and I’m starting to save at least 30% of all income sources.
any askers?
Nice video!! Very engaging from beginning to end. Nevertheless, businesses and investment are the easiest way to make money irrespective of which party makes it to the oval office.
A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. You need to keep raw, irrational emotion under control
Mr Charles Patrick is the best, recommending him to all beginners who wants to recover losses like I did
@Magret Kate My personal portfolio/investment manager; Mr Charles Patrick, after a whole week of research,he runs an investment platform where you don't have to undergo any stress in the trades, he manages my trading account which i opened with a capital of $3000 and now i have grown my portfolio up to over $21,500, a huge success
Oh, I've heard of him but I didn't take it seriously until I tried out with $ 5000 and made profits within some days
How can one reach an expert in trading,cos I have lost alot of money trading with a wrong trader.
Okay I am older than your audience but I need help saving big time. What can I do help to build the savings quick a lot quicker. I have 25 years left until left to retire, but I don’t think I will have enough to enjoy retirement? Please help!
I was in your situation years ago. First thing I did is create a very detailed budget so I could find out exactly where every penny of my money went. I was amazed about the amount of money I spent on non-essential (that didn't even make me happy). Then I started going to the grocery store with a written list and did not deviate from it in the store. First of the month, I shopped for staples (rice, canned goods, etc) then fresh stuff once a week. I stopped throwing food away because I "forgot" it was in the fridge. And then I put a specific amount into entertainment and stuck to it. Just these actions saved me an extra $100 a month. Doesn't seem much but over time, I increased my savings. I don't know if that will help you but I wish you the very best.
@jacqueline thank you for sharing and taking the time to help. I will definitely look into the detailed budget and watch my expenses. Controlling my urges will be very challenging but it needs to be done.
I think I read somewhere in these comments that retirement accounts have higher interest than regular savings accounts?? Idk if that's true, but if you've heard about it, I guess you should keep it in mind
❤️❤️❤️
notification gang
It took me too long to actually understand compound interest. Instead of just saying retirement savings 'should' start at a younger age, videos need to show the difference and that your money could double multiple times over. WITH ACTUAL NUMBERS. You can't understand the benefit of compounding without actual numbers.
This recent Covid-19 outbreak has left a lot of people unemployed and reduction in salary, however making money online is a better alternative investing in binary option has been a massive source of income to me even with the on-going pandemic I still get to earn weekly.
Agreed binary option can be a good source of income if managed with the right strategy I started investing in binary option trades with an independent trader about two months ago started with $3000 which I earned 18% weekly profit after making my withdrawals without any issues I started adding funds to my capital which is now $20,000 and I currently earn a weekly profit of 29%
@@frankfoerster1641 I recently started trading but I have not been able to make profits,I’d acknowledge your advise
Malcolm, I always advise starter to seek assistance from expert that's what really worked for me
@@frankfoerster1641 How do i get to invest with this trader
@@frankfoerster1641 Unfortunately I don’t know any expert trader, do you've any reliable investment specialist you can recommend for me I really need assistance with my trades
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