In this article, we will discuss 6 savings accounts every family should consider having.
Has it ever seemed like you were saving money just to be saving it?
You know…you save up $1,000 in your savings account and think you’re doing something and next month you need to use it to put new tires on your car.
Then the next month you’re sitting there looking at the remaining $500 wondering what’s the purpose of saving if you can never enjoy it.
Of course, the money served it’s purpose well. You were preparing for an unforeseen event and you didn’t have to go into debt to get out of it.
But at the same time, you never get to do anything fun, another unexpected bill always surprises you, and life just passes you by while you juggle one financial event after the other. Well, it doesn’t have to be like that.
Growing up I never witnessed anyone saving for anything. And when I did discover that folks saved money, it was usually bunched up together in one big old savings account.
I would rather have one savings account than none at all, but that still doesn’t mean I was getting anywhere financially.
When I discovered online banking, I found that multiple savings accounts was going to save my sanity and my finances. No more mismanagement of funds and I would be able to anticipate different expenses in an organized way!
Seriously, it hurt my brain to look at an account and try to sort my money out and keep track of what the money is for. Having multiple savings accounts at one bank makes it a lot easier to automate and keep track of my goals.
With that said, I want to share with you six savings accounts that are a must for us (we have more than six accounts, though) and how these accounts may serve you well too.
6 Savings Accounts Every Family Needs to Have
We became members of Capital One 360 (formerly ING Direct) seven years ago. We signed up for one account, deposited $250, got $25 cash back, and started building from there. Now we have over six different savings accounts (two of which belongs to our kids).
Emergency Savings Account
Our emergency savings account has roughly three months worth of expenses. Most experts recommend keeping $1,000 in an emergency account and then throwing the rest at your debt.
That theory doesn’t work too well for me so we keep it above this amount. I’d rather have enough to pay the bills during an emergency. There’s no right or wrong answer when it comes to your emergency savings. It’s simply better to have one than nothing at all.
A Savings Account for Taxes
Next, we have a savings account for our taxes. Since our homeowner’s taxes are included in our monthly mortgage payment, we use this account to save for our car taxes only. I never appreciated those unexpected tax notices in the mail, so I decided to start planning for them.
Gift Savings Account
I do not like worrying about money around the holidays or when it comes to giving to others. So to prevent that from happening, I stash cash into a savings account year round to account for birthday gifts, christening gifts, baby shower, housewarming, and Christmas gifts.
And the crazy thing is, I usually only budget around $500 to $700 for the entire year! I shop clearance and I keep a stash of kid birthday gifts in my closet to keep costs down. It’s amazing at how little you can spend over 12 months when you actually create a savings plan!
Car Maintenance Account
If it feels like you never have any money to get your oil changed, it’s probably because you don’t have it written in your budget. This is a budgeted expense that we pay like a bill.
We send a certain amount to our car maintenance account each month. When it’s time to change the oil, brakes, or tires, we already have the money set aside for it.
529 or Other College Savings Accounts
Not everyone wants to pay for their kid’s college education and to each their own. However, I don’t want to send my kid to college with absolutely nothing if they choose to go. We don’t plan to pay the entire costs of our children’s college education.
Both of our youngins will certainly be expected to contribute to their own learning. But for our part, we set up a 529 for the oldest. She has been saying she’s going to college since she was like three years old and I believe her too because I was the exact same way! The jury is still out on the baby boy:)
A Just Because Account
Last, it’s good to have a just because savings account. You know, for those days when you and the hubby feel like you could use a weekend away. Or maybe you want to drive the kids to Carowinds or Six Flags one weekend. Your just because account is basically fun money. Use it as you please.
Wrapping Thangs Up
As you can see, our setup really isn’t that complicated. All of our savings are deducted from a single checking account on a specific date. Once the money has left our checking account, we don’t even think about it until it’s time to use it.
It’s quick, it’s easy, and it helps me sort out our savings with minimal effort. So, if you’ve been stacking all of your coins in one savings account and feel like you’re ‘bout to lose your mind, give it a try! Having six savings accounts isn’t intimidating, it’s liberating. Find out for yourself!
Do you have multiple savings accounts? Why or why not?