America Saves program announced by Extension

BUILD WEALTH, NOT DEBT THROUGH AMERICA SAVES

Do you have all the money you need? Will you have enough money to live comfortably in retirement? Americans love to spend, but hate to pay. The average family owes $9,000 in credit card debt and is paying $1,000 a year on the interest alone. Most Americans do not have enough savings for an emergency fund (which should equal three to six months of expenses in easily-accessible accounts). Only 53% of today’s workers have tried to estimate the amount of money they will need for retirement.

That’s why February 24-March 2, 2008 has been designated as America Saves Week. America Saves is a national campaign that encourages individuals of all ages and income levels to save money, reduce debt, and build wealth. America Saves’ goal is to encourage individuals to save a certain amount each month toward a specific goal - to buy a home or a car, for example, or to build an emergency fund, or save for retirement.

Individuals can sign to join America Saves on its website: http://www.americasaves.org. In doing so, they get a subscription to the quarterly American Saver newsletter and access to volunteer financial planners recruited by the Financial Planning Association.

Saving even just a few dollars per paycheck adds up over time. The “miracle” of compound interest - earning interest on your interest - allows you to reach your short-term and long-term goals more quickly. An example:

Save $50 a month, with a 5% yield:

1 year: $ 614

5 years: $ 3,400

10 years: $ 7,764

25 years: $29,775

40 years: $76,301

Total: $ 24,000 principal

$ 52,301 interest

The most important thing to do is to pay yourself first - whenever you get a check, put some money in your savings account before doing anything else. Consider making a personal commitment to use government payments received this spring to reduce high-cost debt and increase savings. Remember: Build Wealth, Not Debt.

For more information on family finances or the America Saves program, contact Judy Corbus, University of Florida/IFAS Extension Service in Washington County, (850) 638-6265, or in Holmes County, (850) 547-1108 (TDD, 1-800-955-8771), or at JLCorbus@ufl.edu.