When setting up a savings plan, it's a good idea to think about
more than just how much money you'll need in the future. You should
also be looking at ways your money can earn more money for
you.
Credit unions offer interest on savings accounts. In exchange
for opening an account and giving the credit union your money,
the credit union agrees to increase your money by a certain percentage
every year. By depositing money in your account you can guarantee
that over time you'll make more money, and you won't have to do
a bit of work for it.
For example, if you were to take $100 and put it in an account
that offers 4% interest, by the end of the year the credit union
will have given you four dollars. So, without doing anything,
your savings has grown to $104.
Best of all, it's risk free. The federal government guarantees
your deposits.
Please email teensense@ugefcu.net with questions, ideas or comments.