Jacinta is a young adult who just got out of college. She’s working hard and currently live-ining a job that requires her to be on-site at a client’s facility every day.
Like most people her twenties, she is spending money freely at this time. She’s been working hard ever since she was in college, so she’s definitely paying off the debt from studyinghardlyatthistime.
She has an extensive credit card, which she uses for everything. She doesn’t keep any charge cards around because she says that would be easier to misuse.
She only uses the credit card for buying things on her bank account and sending payments via app via the website or mobile app.
It’s good to have a balance between spending and saving
Having a savings account is great. You can easily track your spending and put money into the account when you need it.
But there are also good reasons to have a savings account. One of the best reasons is that it can help with payments.
Many stores and businesses offer sweepstakes and prizes that require payment before you can claim your prize. If you do not have any money saved, then you will have to wait until you get a winner before you receive your prize.
It’s good to have a balance between spending and saving
There’s a reason most people have a savings account in addition to their checking account. It’s to ensure you can still spend money when you want toheitouch. In addition to your checking account, your spending can prove hard to control.
If you don’t have a savings account, you may be more likely to spend money while intoxicated. This can be very difficult to control as you will probably not remember what you spent it on. Having the ability to save money can prevent you from spending too much while intoxicated.
Having the ability to save money is also important when it comes time to pay bills. You may have forgotten about debt payments and bills that fall behind due tothem.
You can easily transfer money between your accounts
Both accounts can be linked to one another, which makes it even easier to access your funds. Most banks will also offer you a smart card which can be used to transfer money between accounts and other financial institutions.
If Jacinta has an account with the bank, she can easily add money to her savings account using her smart card. If she has a checking account, she can easily withdraw money from her savings account.
Many banks will allow you to link up multiple accounts so that Jacinta can use them both as a way to save money and as an easy way for her to get some extra cash. This is very helpful as it spreads the responsibility of saving and spending between her and herself.
It’s easy to access your money in a savings account
Most people have a savings account or a checking account side-by-side in their homes. So, if Jacinta has a savings account, she can easily access her money via her home banking app.
In addition to the savings account, Jacinta can also have a checkingaccount side-by-side with her husband’s bank account. This way, she can easily check how much money is in her accounts without having to use her own app or her husband’s app.
It is also easy for Jacinta to find herself with too much money in her savings account because she does not have to use any methods of managing it such as limit withdrawals, duration of withdrawal, etc.
So, if Jacinta wanted to spend some of her cash, she could just take out enough from her savings account to cover what she needs.
Your money is safe in a savings account
There’s a reason that your credit card debt, purchases on your debit card, and spending in your account can’t be reversed. It’s because the bank that issued your credit card has a capital reserve account that contains your credit card debt.
If you made a purchase that you didn’t want to keep paying for with your savings account, it would take you several months to years to get back what you paid. In addition, because the bank can’t withdrawal its money until it meets certain standards for security, it will never let you use it to pay off debt.
So while having an account can be fun and help keep track of things, it is not the solution many people look into.
You may need the money in the future
If Jacinta has a savings account, she may also want to put money into her checking account. This is a good idea.
Many banks offer money to bank accounts feature that lets her put extra money into her bank account without it being debited from her savings.
This can help keep track of how much she has spent, and also help ensure that she has enough money in her savings for an emergency.
Some banks even offer special codes you can use to transfer more money into your account. This can make it very easy to start putting away funds.
A second reason for Jacinta to have a savings account in addition to her checking account is so that she can cover herself against any unexpected inflation or deflation.
Savings allow you to plan for future expenses or events
It is also useful to set aside money for fun or leisure activities. Most of us cannot afford to spend all our money on fun and/or spending but having the savings helps in that future expenses can be covered.
In addition, your will be more conscious of your spending as you would while paying off other debts in your current account. Debt can destroy really quickly how rich you may feel about yourself.
Having a savings account will also help you stay informed about changes in your accounts status which may affect payments, bills, and any investments you make.
Many banks offer accounts with an automatic monthly contribution amount. It is recommended that you set your own account up to meet your needs but most people have one at their disposal.
Interest rates are typically higher in savings accounts than checking accounts
This may be the biggest reason for having a savings account in addition to a checking account. As opposed to credit card offers that offer variable interest rates, savings accounts usually have a flat rate of interest.
Most products will have you pay your account monthly fees to keep your balance above $50, which is the typical minimum balance required for an average credit card offer.
This can be cost-effective as fewer charges are made when taking care of accounts. Furthermore, when accounts are combined, there is no cost to maintain two sets of standards. One for savings and one for spending.
