_________________, Extension Educator Family

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• _________________ , Extension Educator
  Family Consumer Sciences
• ________ Field Education Unit
• South Dakota State University, South Dakota
  Counties and U.S. Department of Agriculture
  Cooperating
• South Dakota State University is an Affirmative
  Action/Equal Opportunity Employer (Male/Female)
  and offers all benefits, services,
• Education and employment opportunities without
  regard for ancestry, age, race, citizenship,
  color creed, religion, gender disability,
  national origin, sexual preference, or Vietnam
  Era veteran status.
•  

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TEST YOUR SAVINGS KNOWLEDGE

• 1. How much loose change is available for
  Americans to save?
• 2. What is the typical amount of emergency
  savings that is needed?
• 3. What are the two most important types of
  emergency expenditures?
• 4. How long does it take to completely pay off a
  1000 credit cared balance if monthly payments
  are 2 of this balance and there is a 24
  penalty interest rate?

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TEST YOUR SAVINGS KNOWLEDGE cont.

• 5. About how much more do families with a savings
  plan save than those without such a plan?
• 6. What is the only free money for savings that
  is available to many Americans?
• 7. If they have no other income, how much must
  someone who retires at 65 have saved in order to
  be assured of an annual income of 50,000?

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TEST YOUR SAVINGS KNOWLEDGE cont.

• 8. What percentage of elderly individuals depend
  entirely on Social Security payments for income?
• 9. What is the most effective way to save
  100,000.
• 10. If one saves 200.00 a month with a 5 annual
  yield, after 30 years how much savings will have
  accumulated?
• 11. What represents the most effective way lower
  income families have built assets over the past
  several decades?

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ASSESS YOUR SAVINGS PROGRESS

• Do you know your net worth, that is, the dollar
  amount representing all your assets minus your
  debts?
• Do you have a personal savings plan with specific
  goals and plans for achieving these goals?
• Do you have a personal spending plan that allows
  you to save enough money to achieve your goals?

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ASSESS YOUR SAVINGS PROGRESS

• Do you have credit card or payday loan debt? If
  so, are you reducing this debt?
• Do you spend less than your income and save the
  difference?
• Do you have sufficient emergency savings to pay
  for unexpected expenses like car repairs and
  medical treatment?

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ASSESS YOUR SAVINGS PROGRESS

• Are you saving enough for a retirement where you
  have a desirable standard of living?
• Do you actively save for retirement at work
  through a contributory program?
• Do you use automatic preauthorized transfers from
  checking account to saving or investment
  accounts.

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ASSESS YOUR SAVINGS PROGRESS

• Do you save a portion of tax refunds, gifts,
  bonuses, or other financial windfalls?
• Are you building equity in your home or other
  property?
• Do you expect to pay off all mortgage loans
  before retirement?

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SAVINGS TIPS
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5 KEY SAVING STRATEGIES

• 1. Pay off high-cost debt

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5 KEY SAVING STRATEGIES

• 2. Buy a home and pay off the mortgage before you
  retire.

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5 KEY SAVING STRATEGIES

• 3. Participate in work-related retirement program.

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5 KEY SAVING STRATEGIES

• 4. Outside of work, save monthly through an
  automatic transfer from checking
  to savings.

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5 KEY SAVING STRATEGIES

• 5. Earn at least 4 on some certificates of
  deposit (CDs) and U.S. Savings Bonds.

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WHEN PRICES RISE

• How do we react?

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Adjustments to Spending by NW-SD (2001)

• 58 Postponed major household purchases
• 55 Used savings to meet living expenses
• 49 Cancelled or postponed family vacations
• 47 Cut back on charitable contributions
• 46 Postponed medical or dental care to save s
• 45 Reduced household utility use (electricity,
  
• phone)
• 43 Purchased more items on credit
• 43 Changed transportation patterns to save s
• 42 Changed food shopping or eating habits to
• save s
• 28 You have taken additional employment
•  

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Additional Adjustments Made

• 27 Sold possessions for cash income
• 25 Decreased s saved for children's
• education
• 22 Canceled/reduced med. insurance
• coverage
• 19 Fallen behind in paying bills
• 19 Borrowed money from relatives or friends
• 14 Cashed in insurance policy
• 14 Used public assistance (TANF, utility
  assistance,
• food stamps, food pantry)
• 13 Decided not to have or have more children
• 12 Let life insurance lapse
• 6 Were unable to pay property taxes

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SAVINGS TIPS
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WATCH YOUR SAVINGS GROW
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Examine Your Expenditures

• Focus on needs not wants!
• Control impulse buying with a list and
  prioritizing
• Look for your Leaks in your spending plan and
  habits

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• Comparison shop look for specials use coupons
  buy in bulk use cash discounts shop at thrift
  or discount stores
• Engage in home production exchange goods
  services use free or low-cost community services
• Postpone buying of non-critical items stop using
  credit

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• Dont drop insurance coverage drop duplicate
  coverage
• Do not cancel essential medical dental
  appointments
• Think creatively of ways you can save money

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Ways to Save on Transportation

• Always ask yourself Is this trip necessary? Can
  you bike or walk?
• Plan your route cluster your stops carpool
• Keep vehicle well maintained see owners manual
• Drive at moderate speeds below speed limit
  even!
• Buy a good used car and keep it several years
  consider current and future needs for the car
• Drop collision/comprehensive coverage on older
  vehicles or raise deductible to lower insurance
  premiums
• Pay off loan on car ASAP and start
  saving for its replacement
• Use www.gasbuddy.com to check
  for low gas cost
  locations

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Ways to Save on Housing

• Do not heat or cool rooms not in use
• Replace incandescent with florescent bulbs
• Have electric/gas company do a free energy audit
• Take short showers showers use 1/3 the water of
  baths
• Dont let water run at faucets put water needed
  in basin
• Use a thermostat to automatically adjust
  temperatures
• Caulk windows, apply weather stripping
  insulation
• Keep damper closed on fireplace change furnace
  filters
• Prioritize improvements and keep up on repairs
• Consider refinancing a home mortgage to a fixed
  lower interest rate make all extra payments on
  principal

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Ways to Save on Food

• Eat out sparingly and share a meal.
• Drink water.
• Take own lunch, coffee, pop, or snacks
  even on
  car trips.
• Buy store brands use calculator to make
  cost/unit comparisons
• Scratch cook in batches store in freezer for
  later use.
• Plan meals around weekly ads stick to list
  dont shop when hungry
• Plant a family garden or join a food cooperative
• Utilize leftovers creatively use a crock-pot
  limit convenience foods
• Use store savings cards be selective in clipping
  and using coupons
• Make desserts at home more healthy and less
  expensive
• Buy less meat or larger quantities of (lower
  grade) meat that can be repackaged and frozen for
  later use

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Ways to Save on Clothing

• Check out garage sales and consignment stores
• Avoid fabrics that need to be dry-cleaned or
  pressed
• Purchase needs, not everything wanted (rarely
  worn )
• Buy quality basic items for adults accessorize
  for variety
• Buy comfortable shoes that can be resoled
• Shop for used clothing especially for growing
  kids
• Consider a clothing exchange between
  families/friends
• Buy clothes after holidays or end-of-season sales
• Sew as much as is practical keep clothing in
  good condition
• Know what is already in your closet before buying
  more.

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Ways to Save on Health Costs

• Exercise and follow a diet listen to body needs
• See doctor for health concerns dont wait
  think prevention!
• When possible, cut pills in half to save on
  recommended dosages
• Try negotiating the price of services!
• Try to get samples when changing to expensive new
  medications
• Evaluate Medicare Part D Prescription Drug Plan
  every Nov.
• If employer allows it, use medical savings
  account for co-pays, deductibles and
  over-the-counter drugs
• Use credible online sites for free medical
  information
• Comparison shop for low-cost generic drugs
• Get free first aide training through the Red Cross

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Other Ways to Save

• Track your spending set up a budget and stick to
  it
• Let your money earn interest rather than paying
  others interest
• Compare financial products and loan costs
  (www.bankrate.com)
• Check out SD other places for cost of living
  (ww.bestplaces.net)
• Buy kids needs give them an allowance to buy
  their wants
• Use the Rule of 3- check out three sources for
  large purchases
• Pay Yourself First get in the habit of savings
  have 3 to 6 months expenses in an emergency
  savings account start today!
• Sell unused stuff for cash rent what you need
  not own
• Use community resources garden plots
  libraries parks etc.
• Consider downsizing or a reverse mortgage
  simplify your life!

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• QUESTIONS ?

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REFERENCES

• AMERICA SAVES SOUTH DAKOTA SAVES
• DR. LIZ GORHAM, SDSU COOPERATIVE EXTENSION
  SERVICE FAMILY RESOURCE SPECIALIST
• NATIONAL ENDOWMENT FOR FINANCIAL EDUCATION
• 2001 NORTHWEST SOUTH DAKOTA STUDY