Aside from reading and writing, one of the first things parents teach their children is how to save money for the future. As kids, however, it is rare that we fully understand the value of this lesson. This is why a lot of younger people tend to be careless about their funds since they think there is still plenty of time to save up when they get older.
As people grow old and enter the phase of their lives where they need to be independent, they are left clueless about various things. This includes budgeting, setting up multiple bank accounts, cutting spending, and recording their expenses. True enough, becoming an adult can be overwhelming, especially if you grew up depending on your parents to do the budgeting.
Worry not, however, because Cebuana Lhuillier is here to help you handle your finances. Count on us to teach you what to prioritize when saving and guide you on how many savings accounts you should open. On top of that, we even offer a micro savings service that provides better banking access and experience to Filipinos.
What Is a Savings Account?
Banks and financial institutions offer interest-bearing deposit accounts like savings accounts. People open them so they can secure a safe place to store their hard-earned money while earning additional funds.
These interest rates allow account owners to grow their savings without doing or risking anything. Basically, a savings account is a good investment, especially for gen Zs and millennials who are just new to budgeting their salaries. These financial products are fast and easy to set up, making them perfect for those who want to save money as soon as possible.
Features of a Savings Account
A savings account, like the one offered by Cebuana, has many important and useful features. Unlike keeping your cash inside your piggy banks, there are more perks when you entrust your money to banks or financial institutions.
First, some savings accounts do not require a minimum balance. This means that if there are emergencies and you need to withdraw all your money, you won’t be penalized for draining your bank account.
Second, owners can deposit and withdraw cash anywhere as long as there is an automated teller machine in the area. This is especially beneficial for those who do not have time to go to banks.
Lastly, most savings accounts nowadays can be easily accessed through a mobile banking app. Through this feature, users can immediately check their balance anytime, easily pay for something online, and quickly send money to their loved ones.
How Many Savings Accounts Should You Open?
If you are wondering how many savings accounts you should open, the short answer is as many as your goals. Having multiple bank accounts will do you no harm as long as you can manage them properly.
According to an expert, a person should have at least four bank accounts. Two of those are checking accounts, which can be used to pay your monthly bills and other important expenses like car or house loans.
The other two should be savings accounts, which you can use to build your emergency fund and save up for other expenses like retirement, leisure activities, and other investments.
However, for those who are just beginning to save up, it is not bad to start with one savings account. Just make sure to choose a bank or financial institution that you can trust and can offer fair or high-interest rates.
Why You Should Start Saving at a Young Age
Most young people who just started earning money want to live their lives to the fullest and spend their earnings on the things they love. Oftentimes, however, they forget about their responsibilities and the overall importance of having backup funds.
If you are one of those people who ask themselves, “ Why should we save money?”, here are some reasons:
Finance the Things You Want To Buy
Saving doesn’t mean you will restrict yourself from buying the things you want. It is actually the opposite. Once you deposit your cash into your savings account, you can wait for it to grow before finally having more means to purchase something bigger. During this time, you can also contemplate whether you really want something or just have impulsive shopping tendencies.
Build a Strong Habit of Saving
Learning how to save early and building a strong habit out of it is extremely beneficial for anyone. This is because once you start earning for yourself, you won’t have a hard time budgeting and allocating your earnings. Moreover, you will not become clueless and end up wasting your cash on some random impulse purchases.
Prepare for the Future
The future is always uncertain. You can end up requiring more money than the usual amount you need. Moreover, emergencies that require you to withdraw a huge amount of cash cannot be avoided. Having a savings account that you can depend on is such a great relief, which is why saving as early as possible is recommended. This way, you will have a larger pool of resources for your future.
Start Being Independent at an Early Age
Being independent at an early age means your parents were successful in teaching you how to save, and you are responsible enough to take account of your expenses. This will take you further in life since you will have better control of your earnings.
Avoid Going Into Debt
If you are able to save monthly by depositing money into your savings account, you will be less likely to go into debt. People who get stuck in a loan cycle usually don’t know how to budget their finances, which is why they end up spending more than what they earn.
Let Cebuana Help You Handle Your Finances
Cebuana Lhuillier offers accessible banking for every Filipino. You can easily open a micro savings account with us by going to any of our 2,500 branches nationwide. The only requirements you should bring with you are one government-issued ID, PHP 50 minimum initial deposit, and PHP 150 card fee.
Saving early is the best thing you can do to have a better life in the future. It will not only financially secure you but also give you peace of mind that no matter what happens, you have a savings account that you can depend on. If you want to open a micro savings account, turn to none other than Cebuana Lhuillier. Get in touch with us now so you can start saving!