Savings that work for you
Create savings shortcuts to reach your money goals
I started using club accounts because I didn’t want to keep all of my money in a checking account. I wanted an easier way to figure out how much I could spend on eating out, fun events or personal purchases, and how much I need to leave in for my mortgage, utilities and car insurance.
Club accounts are a way to separate your money in the bank into categories. You could set up accounts for your car payments, vacations, shopping and credit card expenses. But why set up these accounts?
- Automate your savings. Set up automatic distributions so you don’t need to remember to save – and inevitably forget. If you get direct deposits of your paychecks, you can designate certain amounts of each paycheck to automatically deposit into your club accounts.
- Control your spending. Club accounts help set clear limits to how much you can spend on specific activities. If you decide you only want to spend $100 a month on personal shopping, you can transfer the money from your personal shopping account to your checking account before you start shopping. You’ll know exactly how much you have to spend, and when you’re out of personal shopping money.
- Plan for big purchases. Make sure you have money set aside to pay for a car repair – or that summer vacation. Regular, automatic savings will help you avoid panicking if you have a sudden big expense. If you’ve set aside money in your “home repair” account for months, there’s no need to worry when you suddenly need to replace flooded basement carpet.
Amy Byler is Branch Manager and Loan Officer at Everence Federal Credit Union in Kidron, Ohio. Learn more about her expertise at everence.com (under Find your representative) and watch her video interview.