3 Advantages of a Special Savings Account

Americans are saving less. 

Did you know that Americans are saving 15% less in 2022 than they did in 2021? In fact, American's savings have dropped from $73,000 in 2021 to $62,000 in 2022, according to Northwestern Mutual’s recent study.¹

This eye-opening statistic highlights just one of the reasons why now is an important time to make saving a priority. Lucikly for you, there are savings accounts that can help you accelerate building up your savings. 

Benefits of a Special Savings Account

With the holiday season quickly approaching, now is a great time to consider opening up a special savings account. Having a designated account to put funds aside for upcoming holidays, birthdays, or special getaways provides many benefits!

1. It’s a terrific way to stay on budget
When the special occasion finally arrives, the money you have saved will serve as a reminder of what your spending limit is - AKA, your budget. If you only have $500 in the special savings, you should only allow yourself to spend that much money.

2. Great tool to help you plan ahead
You should always set a goal for how much money you plan to put aside for your special savings account. It’s much easier to say in July, I only plan to spend $1,000 for my holiday getaway vacation. It gives you plenty of time to research what special destinations you can visit for $1,000 or less. You want to try to avoid waiting until the last minute, to buy tickets or make reservations, because this usually leads to impulse spending. 

3. Can act as your emergency fund
A special savings account can also serve as your emergency fund. You never know when a car repair or the need to replace your home AC unit will arrive. When life happens, your special savings account can serve as  a buffer for your unexpected expenses.

Still unsure if you actually need an emergency fund?
Watch this video to see what an emergency fund is and why you really do need one to ensure you're prepared for life's unknown circumstances.

Last, But Not Least

Opening up your special savings account today is a great way to alleviate stress that may be associated with spending money during the holidays or when life throws you an unexpected curveball!

Stay on track with your financial goals with Coastal! 

Make sure to explore all of Coastal's savings products - from saving to buying your first home to establishing your emergency fund - we have the perfect savings account to help you turn your dreams into a reality!

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