So you’ve got a little bit of money stashed away in a general savings account – good for you! But unless you’re a single twenty-something , that’s just not going to cut it. If you’ve got a family at home, it’s time to consider the bigger financial picture. To make sure you and your family are set financially, here are the five savings accounts you should have.
Emergency Fund
It’s surprising how many families do not have an emergency fund. Life is full of surprises and the bad ones can knock you off your feet and leave you without income. Experts suggest saving 3 to 6 months worth of total expenses (mortgage, utilities, groceries, car payment, etc.) in case of an emergency.
General Savings
Don’t ditch that general savings account you’ve had since you were a child. Keep stashing money into that account when you can. What for? How about those unexpected expenses such as a flat tire or broken washing machine? Better yet, use your savings to fund a family vacation.
Medical Fund
Health insurance only goes so far. It’s a good idea to have a savings account for any medical expenses that may arise; co-pays, prescriptions, accidents, etc. If you are planning on having a baby, review your insurance plan to determine what is covered and save the difference for a less stressful pregnancy.
College Fund
A quality education can be expensive, it’s never too early to start saving for college. Start saving for higher education when your child is just a baby. If you’ve saved too much or if your little genius has been awarded a scholarship, use the extra cash to go on a European getaway or finally upgrade your kitchen.
Retirement Fund
This is another savings account that you can never start too early. In fact, you should start a retirement account right now if you don’t already have one. Find out from your employer if they offer a 401(k). If they don’t, you can look into opening a retirement account with your banking institution.
If you don’t have all or any of these savings accounts, don’t panic. It’s not too late to start planning for your future. If you have questions about what savings accounts are right for you and your family, feel free to swing by a branch or give us a call at 800-835-3400.