Some Old-School Ideas to Save Money That No Longer Work | First Volunteer Bank
The team at First Volunteer Bank wants to know how many times your grandparents have tried to give you advice on how to save money. How many of their tips have you tried? Perhaps you tried to do what they advised, but it didn’t really work out for you the way they said it would. Do you want to know why? It’s because saving in the past isn’t exactly like saving money today.
Saving Tips that Don’t Work
Have you heard these pieces of advice from older relatives and friends? Learn why you might want to think twice about following their advice.
First, they’ve probably told you to avoid credit cards and stick with cash. This is often one of the main tips from older generations to the millennials. Unfortunately, avoiding credit cards will not be beneficial to your financial life. While you don’t want to be financially dependent on credit cards, some amount of credit is helpful for building and maintaining a solid credit score. Just make sure—for your financial benefit—that you limit your use of credit cards and pay them off in full each month, whenever possible.
Second, they may have given you advice on how to save for retirement. But many in the older generation had pension plans—and retirement savings looked very different for them. Costs have changed. Interest rates have changed. Pension plans are largely a thing of the past. Therefore, it’s important that you speak to a knowledgeable financial expert who’s able to lead you in the right direction of where retirement is headed today so that you and your retirement account can be better prepared for those days ahead.
Finally, no matter how much your loved ones tell you to hide cash at home—don’t. (Yes, we know: It’s hard to imagine anyone thinks this way anymore!) You’d be putting your money at risk of theft by keeping it in your home. Plus, with today’s weather, you never know when natural disaster could strike. Keep your money safe by storing it in one of our savings accounts that best fits your family’s needs.
Are you unsure about how to save money like you should? Visit the First Volunteer Bank website to learn about our educational opportunities, such as our Lunch and Learns, that can help people learn the importance of saving money.