Every day we make choices. That means we must pick between two or more things instead of having or doing them both. Do I want vanilla or chocolate ice cream? Do I want to play inside or outside? Deciding to save or spend our money works the same way.
If there is something you would like to buy, but don’t have enough money for right now, saving is a choice that can help you stay on track until you earn enough to reach your goal.
When you choose to save for that special item or goal, you are weighing the cost of the opportunity. Opportunity Cost is what is given up in order to pursue another choice.
For example, by deciding not to buy the ice cream from the ice cream man, you may be able to save more money for the water slide you would like to use all summer with your friends. By picking to save for the water slide, the cost is not having an ice cream.
A big part of learning how to save is learning how to plan for tomorrow or the future. Being able to plan is a sign of growing up and being responsible! Saving may not always be easy, but starting to do so a little bit everyday will help you build strong saving skills.
Be smart about how you save your money by keeping it in a safe place. While storing it in your piggy bank or drawer may be convenient, it could be easily lost or used for spending. By putting it somewhere safe, you’ll protect your money to help you achieve your goal.
Opening a savings account at a bank can help you put money away for safe-keeping. A savings account not only protects your money, but helps it grow. The amount of money in your account is called your balance.
By opening a savings account, you let the bank borrow the money to make loans. These loans help people like your parents buy a house, car or send you to college. Even though the bank is borrowing your money, you can still get it any time you need it.
For your help, the bank helps you earn more money by paying you a certain amount based upon the balance of your account. That amount is called interest. You earn money just for saving!
You can continue to help your money grow by making desposits into your savings account. A deposit is when you put more money into your account. The more money that you put into your account, the more interest you will make. The more money you save, the closer you will be to your savings goal!
When you want to use the money you saved, you can take it out of your account by making a withdrawal.
Even after you reach your savings goal, you should continue to put money into your savings account. Continuing to save, even a little bit every week or every month, can help you build strong skills for your future.
If you have iStrive Savings, NBT Bank helps you check your balance anywhere, at any time, with Online Banking, eStatements, or by calling the NBT Banker Line. Or, you can visit your local NBT Bank to ask.
Online Banking allows you to view and access your account through the Internet. With Online Banking you can see your deposits and withdrawals as they occur so you can see how much you have saved at any time.
To help you keep track of your deposits and withdrawals, the bank provides a listing of all your account activity that happens over a set period of time—called an eStatement, or an electronic bank statement. The eStatement will also show you how much money you had at the beginning of the period and how much you had at the end of that period. Typically, a period is defined as one month (monthly) or every three months (quarterly). You can then see how your actions affect the growth of your balance.
Your eStatement can be accessed through the bank's secured website so your account information is accessible whenever you need it, and it's also protected for your safety. At the end of every term or period, the bank typically sends you an e-mail to remind you that a new eStatement is available for your review.
To learn more about savings accounts such as iStrive Savings, or any other bank products that can help you save, contact your local NBT Bank today.