Why Saving is Important

Saving is important. One of the best ways to improve your overall financial picture is to save money every month, even if it is only a small amount. Here are some ideas to start saving money:

• When you get your paycheck, pay yourself first by taking a certain amount of money ($10, $25, $50) out of your paycheck and putting it into a savings account before you pay other bills. Better yet, have your company take the money out of each paycheck automatically and put it into your savings account.
• When you pay off a bill, continue making the same “payment”—but put it in your savings account.
• Another easy way to save: Put $1 a day in a jar. Then add your loose change to the jar. At the end of the month, you will have about $50. Once a month, take the money to the bank and deposit it into your savings account. By the end of the year, you will have $600 or more!
• Think about starting your own family “bank.” If you have several family members living together, pool your money to create a fund and allow each other to borrow from it. Just like you would with a regular bank loan, agree with other family members how much money can be borrowed, the interest rate, and how long each person has to re-pay the loan. You may even want to open your bank to others within your tribe or community.

In most cultures around the world, it is common for several generations to live together in a house, sharing resources and taking turns in caring for each other. Even in America, where generations seek independence from other family members, more and more households consist of three or more generations of family members.

According to the U.S. Census Bureau, multigenerational families make up 4 percent of the country’s 105.5 million households. These numbers are growing, particularly in states such as Hawaii and California, which have higher concentrations of Asians and Pacific Islanders, according to demographer Paul Ong of UCLA.

Multigenerational housing helps all family members in several ways. Elder generations are able to spend more time with grandchildren and reinforce values, such as the importance of family and preserving traditional ways. Parents depend on grandparents for support and help with raising children, often times cutting down on daycare expenses and sharing the household costs. Children are rewarded with an engrained sense of the importance of family, strong family support, and increased financial awareness.