There are several ways that you can save money without turning yourself into a miser. In fact, you won’t have to change your behavior at all. You may be surprised how a few simple changes can really add up.
We used to empty our pockets at the end of the day, toss the change into a bowl or piggy bank. This loose change could quickly add up to a few hundred dollars that could then be used on groceries, entertainment or even placed in a retirement savings account.
The problem is that fewer and fewer of us actually use real money to buy things. Plastic has become the norm, and piggy banks are all but obsolete. Some banks have come up with an easy solution to this problem. It’s a great tool to use called “Keep The Change” accounts.
The first bank to offer this came up with an account that allows customers to create a virtual piggy bank. When a consumer uses their check card to make a purchase, the bank rounds the total purchase price of the item up to the nearest dollar. The difference is then transferred to their savings account. For the first three months, some banks even match your virtual change deposits.
If you have kids, an easy way to add to their education savings is through a “Upromise Account”. Membership is free and it will allow you to effortlessly squirrel away savings just by making regular consumer purchases. Retailers participating in the program agree to match a portion of the purchase price and contribute it to an education savings account. Currently more than 550 companies participate including McDonald’s, eBay, Barnes & Noble, JC Penney and Office Depot. After you buy from a participating merchant, you then receive 1- 25% (depending on the purchase) of the money. The money doesn’t come back to you, but rather into a 529 account reserved for your child’s education.
Merchants like the program because it provides cheap advertising and breeds customer loyalty, but what’s really important to consumers is this is essentially free money if you were going to make the purchase anyway.
Tags: banks, education costs, retirement fund, saving money
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