America Saves, Do You?

Beginning February 25^th, individuals and organizations around the country, including the Kentucky Cooperative Extension Service, will participate in “America Saves Week.” This annual event was started by the nonprofit America Saves, which works to raise awareness of how best to save money.

America Saves Week encourages you to find ways to make your money grow faster. One of the best ways to save money is to make your savings accumulate interest. When the interest compounds, it accrues interest on top of previously earned interest, so it grows more quickly. Putting your money into a mutual fund is another way to make your money earn you more money. A mutual fund is a diversified portfolio of stocks managed by an investment company. The risk of loss is small because the funds hold stock in many diverse industries, yet the returns can be very beneficial. Savings bonds are another choice. These are certificates that attest that a company or government will pay you back the bond price plus interest once the bond matures. Both of these options reward you just for saving and are great choices for new investors. However, putting your money in the stock market, mainly through mutual funds, will earn you money much faster than savings bonds and interest earned in savings accounts. To be fully diversified, you will want money in various types of savings and investments.

READERS, what do you think?

Do events like this encourage you to become more involved in your finances?

Reference:

America Saves. (n.d.). America Saves Week. Retrieved from http://www.americasavesweek.org/home-2.