A good first step toward saving is to open a savings account at a bank or a credit union.
In this lesson, you'll learn about:
Financial institutions, banks and credit unions offer a variety of savings accounts.
This deposit insurance means your money is safe even if the bank or credit union fails and has to close its doors.
U.S. savings bonds are a low-risk way to begin saving and investing.
Series I bonds are indexed for inflation. The earnings rate on this type of bond combines a fixed rate of return with the annualized rate of inflation.
Another savings option may be an individual development account, or IDA.
In some communities, people whose income is below a certain level also have the opportunity to open an IDA as part of a money-management program organized by a local nonprofit organization.
IDAs are generally opened at a local bank. Deposits made by the IDA account holder are often matched by deposits from a foundation, government agency or other organization.
Training programs on budgeting, saving and managing credit are also frequently part of IDA programs.
Find out about IDAs by visiting this website at www.cfed.org/programs/idas.
In this lesson, you learned about simple tools that can help you earn money on your savings. You also learned about several safe types of savings accounts and about IDAs.
Next you'll learn about investing — another set of tools that can help you build wealth.