Financial Education: Saving Money Without a Savings Account

Whether it’s saving money to buy a car, pay off debt, to take a weekend getaway, or to pay the monthly bills – everyone seems to be saving money where they can.

Sometimes the concept of saving money is easier said than done, and people are often under the misconception that they need to open a bank account to do so. However, with the right guidance and tactics, anyone can save money and a bank account is not always needed.

Today we will touch on four beneficial ways that you can save money without an actual savings account.

Start Using a Prepaid Debit Card

A prepaid debit card is like a regular debit card, but is not linked to a bank account. Using a prepaid debit card is a safer choice than using a credit card because it’ll keep you free from associated high interest rates and hefty fees. Prepaid debit cards are also a smart option because they will allow you to spend money that you already have, keeping you from acquiring debt and keeping you on track to make smart spending habits.

In terms of saving money, you could always open a separate prepaid debit card that you do not use for everyday spending. If you are saving up for a vacation that you are taking in a few months, you can transfer money on that card from each paycheck, and it will be ready for you to use on your vacation!

Download a Financial Services App

There are many financial services apps such as PayPal, Venmo, or Chime. These apps provide free financial services where you can send and receive payments, and do not necessarily require the user to have a bank account linked to the app. Instead of linking the app to a bank, you can order a card that functions like a prepaid debit card.

A financial service app is also a secure place to store your money. Let’s say that you want to start saving 25% of each paycheck to save up for a down payment on a car, and each week you get a payment of $400 to your app. You can transfer $300 of the paycheck to your card associated with the app, leaving $100 saved in the app. When you have saved up enough for your car down payment, you can then transfer the money saved in your app out to make the payment.

Using a financial services app is just another way we can use our technological world to our advantage. Many companies are now accepting payment straight from the app on expenses such as utility bills and rent. If you need to pay a bill to a company that you cannot directly Venmo, your prepaid card will be valid just about anywhere.

Don’t forget to look into the rewards programs that financial services apps offer to receive cash back and other exclusive benefits.

Consider Getting a Certificate of Deposit

If you have a goal to save money that you will need later down the road, consider getting a certificate of deposit (CD). A CD sets money aside to be accessible later on, but is not available to help you when you are in need of immediate cash. CD’s do have interest rates and they also require a credit check before you are able to open one up.

Invest in a Fire Safe Box

If you would rather have cash on you instead of putting money in the bank, using cards, or financial apps – make sure you have a fire safe box to store it in. Carrying large amounts of cash on you everywhere you go is not only unsafe, but unwise when it comes to saving money.

Make sure to stop by or call your local Community Currency Exchange Association member location to learn other nifty money saving tips today.