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Hi, I’m Sarah with Wells Fargo & Company. Today we’re discussing how to choose a savings
plan that fits your needs and is the best plan for you. Saving money is a tried and
true way to improve your financial situation. We’ll start with an important concept: you
should pay yourself first. This means making a decision to put a percentage of your earnings
into a savings plan each month. You should do this before you spend any other money.
Five percent of your earnings is a good place to begin, but some start with 10 percent.
You probably realize that you need to start saving money. But how do you choose the right
savings accounts for you? Well, it depends on your income, your budget, and your reasons
for saving, both short-term and long-term. There are three key types of savings accounts
available: a traditional savings account, a money market account and a CD, or time account.
Each of these types of accounts is right for certain people at certain times. Many people
have more than one savings accounts. We are going to discuss all three types of savings
accounts and help you decide which one is right for you. Plus, you also have other investment
and retirement savings options that may earn you a higher return, but may also require
you to take on more risk. A savings plan is a very important step toward developing financial
security, and there are many important choices to consider.