MONEY MATTERS

Saving should be the new normal

If the fallout from the COVID-19 pandemic taught us anything, it’s the importance of having a MONEY MATTERS financial safety net. Not since the recession of the late 2000s have we seen such disruption to the labor and financial markets, with layoffs and pay cuts becoming all too common, leading people to pull money from savings accounts, 401(k) programs and real estate equity.

Many of us were told by our parents and grandparents to save up for a rainy day. Well, in 2020, that rainy day arrived in the form of a global economic crisis. While truly unprecedented, the pandemic opened many eyes to the importance of putting money aside, whether in a savings account, certificate of deposit, IRA, mutual fund or some other conservative financial instrument. Here are four ways to set yourself (and your family) up for savings success. Lori Harrell

Create budgets and save specifically for special occasions and events

We’re moving into the autumn months, and that means the holiday season will soon be upon us. Valley Bank offers a Holiday Club Savings account that you can use to build up a reserve of funds for spreading holiday cheer. This targeted savings account is a great tool to help make those holiday wishes come true.

It’s easy to set up a Holiday Club Savings account. Just visit a Valley branch and deposit a minimum of $20. After that, you can make regular deposits of anywhere from $10 to $50. To make it even easier, Holiday Club deposits can be debited directly from your checking account.

Then, in October, you’ll receive a lump sum payout, with interest, that you can use for shopping, travel or whatever end-of-year goal you’ve been aiming for. Plus, you can set up your Holiday Club account to renew automatically the following year.

Think about retirement and set up an IRA

Customers who are nearing retirement age can choose between a traditional or Roth IRA to suit specific needs. IRAs are a relatively safe way to invest and grow your money, particularly for people who aren’t comfortable with taking risks on the stock market. Work with an experienced banker who can explain how IRAs work, and find the one that’s best for you.

Start saving money, even a little, regularly

There’s been a lot of talk about the postpandemic new normal, and saving money should be a big part of that conversation. Yes, the housing market is strong, but other parts of the economy, like employment and supply chains, remain volatile. And with inflation lurking around the corner, you never know when you might suddenly start seeing higher prices for goods and services.

Get kids saving early

The earlier you can start positive savings habits, the better. For example, Valley offers a savings account for minors. They can sock away birthday money or perhaps contribute a portion of their allowance and watch the balance grow over time. And when the amount is high enough, they can use their savings to acquire a certificate of deposit and get a higher rate of return.

~ Lori Harrell is Vice President and Market Manager at Valley Bank’s Mill Square branch in Alexander City and the Dadeville branch in Dadeville. She has more than three decades of experience in the banking industry and has been with Valley for the past 10 years.