7 On Your Side has all you need to know about saving money easily

Friday, October 20, 2023
NEW YORK (WABC) -- The latest data from the U.S. Federal Reserve says that the average American family is saving less than ever, and that they would not be able to cover three months of emergency expenses with their savings. With inflation, it makes it even harder for everyday Americans to put their money into their savings.

Nina Pineda and 7 on Your Side found ways to put your piggy bank on autopilot and find money you are wasting, to make saving easier for you.
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One of the best money moves you can make is moving money from a traditional savings account into a high yield savings. It's the ultimate free money.

According to the FDIC, the average interest rate on basic savings accounts is 0.45%. That means, if you had $5 thousand in a basic savings account for one year, you would only earn $23.

On the other hand, if you put that $5 thousand into a high-yield savings account, after that same year you would earn $256, a difference of $233.



Plus, there are several different apps that can save money for you by analyzing what comes in and out of your account, automatically moving money from your checking to your saving account and rewarding you for reigning in your spending.



Acorn is a popular app for saving money. It works by rounding up your purchases to the next dollar, and micro-investing that money into the stock market. For example, if your groceries cost $30.45, the app rounds your total up to $31 and invests 55 cents into your future.
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Rocket Money is an app that finds recurring subscriptions and can negotiate your bills lower.

"Just think about how many free trial offers are out there, how many people signed up for streaming offers, and then you just forget stop using forget to cancel it," said Haroon Mokhtarzada, CEO and chair or Rocket Money. "On average, it saves $500 for people who utilize all of our services."

You do not have to save a lot to earn a lot over time. If you start saving $50 a week at 25, after 35 years invested in a fund you would have $393,180.35.

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