Insight into Bank of America's Innovative "Change Saving Program"
Automating Your Savings
One of the easiest ways to save money is to automate the process, making it simple and effortless. There are various methods available to help you move funds into a savings account without any extra effort on your part. For example, Bank of America's Keep the Change program, Wells Fargo's Way2Save, and various apps that round up your purchases to the nearest dollar can all help you save without even realizing it.
The Round-Up Strategy
One effective strategy for saving is to round up your purchases to the nearest dollar and transfer the extra change into your savings account. Bank of America's Keep the Change program is a great example of a service that can automatically do this for you. After enrolling your debit card, Bank of America will handle all the logistics for you. For instance, if you buy a cup of coffee for $1.43, the program will round up your total charge to $2.00, depositing the extra $0.57 into your linked savings account. This small change can add up over time, providing you with a steady stream of savings without any effort.
Does it Make a Difference?
While automated savings programs like Keep the Change can be helpful for those who struggle to save on their own, they may not have a significant impact on your overall financial situation. It's important to take a proactive approach to saving, setting specific goals and actively deciding how much you want to save each month. By taking control of your finances and intentionally putting money into your savings account, you can make real progress towards your financial goals.
Better Saving Strategies
While programs like Keep the Change can be a helpful supplement to your savings plan, there are more effective strategies available. Consider setting up automatic transfers from your checking account to your savings account each month, treating your savings like a required monthly payment. This "pay yourself first" approach ensures that you're consistently saving money and making progress towards your financial goals. By being intentional with your saving and actively monitoring your finances, you can ensure that you're on track to achieve your financial objectives.
