How to build your savings account

    8:59 PM, Apr 11, 2011   |    comments
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    LITTLE ROCK, Ark. (KTHV) -- Linda Tucker with Consumer Credit Counseling Service sits down with THV's Liz Massey. Tucker will be on Today's THV at 6:30 every Monday in April to talk about important financial issues.

    Last week we talked about budgeting and spending habits, this week we're talking about savings.

    First, Linda Tucker with Consumer Credit Counseling Service says you need to have a goal. It's best to have 3 to 6 months of your salary saved for emergencies.

    Tucker says you can start saving just by saving the change in your pocket. It will add up over time. Also use coupons, reduce services and seasonal shopping can all help you save money.

    You should also start a fund for purchases you may need in the next 1 to 3 year. Figure up how long before you'll have to make the purchase, divide by the number of paychecks and put that money away each pay period.

    Tucker says you also need to think about long term savings for example, education and retirement. And get involved with employer plans as quickly as possible. Start small and build up says Tucker, investigate IRA's, CD's and other vehicles that are built for the long term. Tucker says it's also important not to dip into these funds until it's really time to use them.

    Next Monday, Tucker will join us to talk about ways to teach children about money.

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