Financial Stewardship

• Security: Keeps your money safe and secure
• Easy access to fast cash from an ATM and simple online shopping through a debit card.
• Helps you develop sound financial management
• Creates financial stability
• Helps you plan for emergencies
• Offers financial services to help you manage spending, saving, payments, and investments
• Having a savings account which acquires interest helps protect you from inflation
• Overall, helps organize and manage your spending through statements 

• Monthly Service Fee
  • Also called a maintenance fee
  • Bank might charge this monthly just for having the account
• Per-Check Fee
  • A fee for every check you write
  • Some banks may charge after writing a certain number of checks
• Check Printing Fee
  • A fee for printing checks you purchase from your bank
• ATM-Use Fee
  • A fee for using an ATM whether from your bank or from another bank
  • Using another bank’s ATM, that bank may charge an additional fee
• Overdraft Fee
  • Also called NSF fees
  • Charged when you do not have enough money to cover expenses you are making
• Returned Deposit Item
  • A fee associated with cashing out a check you wrote yet you do not have enough money in your account
• Stop-Payment Fee
  • A fee associated with asking the bank to stop a check from being paid
  • A bank may not always be able to stop the check in time
• Teller Fee
  • Some banks may charge a fee for making deposits or withdrawals through a teller more than a set number of times each month 

Saving: Involves putting money aside for future goals or emergencies (ex. emergency fund, saving for a vacation, or setting aside money for retirement).

• Emergency Fund: Covers unexpected expenses. He typically recommends starting with $1,000 as a beginner emergency fund, then gradually building it to cover 3-6 months' worth of living expenses.
• Sinking Funds: These are separate savings accounts for specific future expenses, such as car repairs, vacations, or Christmas gifts. Sinking funds help you avoid dipping into your emergency fund for non-emergencies.
• Retirement Savings: It is important to start investing in your retirement early and consistently. It is recommended to begin investing in tax-advantaged retirement accounts like 401(k)s or IRAs, aiming for a retirement nest egg of at least 15% of your income.
• Kids' College Funds: While Ramsey encourages parents to prioritize retirement savings over college funds, he suggests using tax-advantaged accounts like 529 plans or ESA (Education Savings Accounts) to save for children's education if possible.
  • Consider this: If you came from a low-income family and received a lot of FAFSA aid, keep in mind that your children may not qualify for as much, since you are educated and will likely have a successful career.
• Debt Snowball: While not strictly savings, debt snowball method involves saving money to pay off debts systematically, starting with the smallest balance first while making minimum payments on all other debts.
• Investment: Consider investing in diversified mutual funds for the long term, especially those that focus on growth stocks. Trying to predict market timing can be tricky, so diversifying your investments can improve your chances of growth. Starting investments early allows your money to grow steadily over time. Take the time to research the mutual funds or stocks you're interested in and don't hesitate to reach out to a financial advisor at your bank for advice. 

Investing: The act of allocating resources, typically money, with the expectation of generating income or profit in the future (ex. purchasing stocks in companies like Apple or Google, investing in real estate properties)

Saving vs Investing

Are You Saving Enough For Retirement?

Retirement Plans Explained