Six-step savings plan with a head start in the past
A TIMELY museum exhibition about the role of money is revealing ways people have saved throughout history, offering clues on how to get into the habit today.
Money Talks at Leeds City Museum is showcasing items that highlight the importance of cash in shaping society.
Among the treasures on display are a series of ornate money boxes used by customers of Leeds Building Society during the early to mid-20th century.
A survey of the society’s members revealed money boxes still have their place today. It showed six in 10 still used a money box, mostly to keep loose change safe, and also as a way to save up for little treats. This was true even for those who preferred digital payments to cash.
Members also said handling cash – and the visible act of saving – helped their children and grandchildren learn about money and understand its value, as well as improve their maths skills.
Matt Bartle, director of mortgages and savings at Leeds Building Society, said: “Times are tough for many people currently but our research showed money boxes still have a part to play in helping to save.
“Reminders can help when learning new habits and sticking to them and it’s no different with saving. Anyone with an ‘out of sight, out of mind’ attitude to money might need some prompts to keep them sticking with a savings habit.
“There’s nothing wrong with starting small and sometimes the old ways can be the best – popping spare change in a money box is a great way to get going.”
It can be difficult to put a bit of cash away, especially when money is tight, but our six-step plan can help you build good habits.
1 Find your motivation
To stick to your savings habit, you have to be committed.
You need to know what your goal is. To feel more secure by creating a financial safety net? Saving for an event like a big birthday or anniversary? Or for something big, like a holiday or new car or towards a major life change, such as retiring or starting your own business?
“Whatever your reason, keep it in mind to stay focused on what’s important and motivated to reach your goal,” says Matt.
2 Face your finances
Look at your bank statements to see how much you have and how much you’re currently spending.
This should help you spot areas where you could make the odd saving, to free up a bit of money to put to one side. Once you know how much you have left after bills and necessities, you can decide what you can realistically afford to put away.
But even with just a little spare at the end of the month, you can set a goal. Looking at your statements can be daunting if you don’t do this regularly. But it’s best to face your finances head on.
3 Start small
Stay focused by setting one manageable goal, to avoid overstretching yourself or losing motivation.
“Choose a goal that’s realistic for you and look at changes which could save more,” adds Matt.
“But even without extra cash to set aside, or luxuries to give up, you can try other savings hacks.”
Regularly check your bills to ensure you’re getting the best deal, or consider selling clothes and other old items.
4 Decide how it will work
Get into the detail and set yourself some rules. Here are a few things to think about…
■ If you are saving a certain amount per month, will you open a savings account to keep it separate? How about setting up a standing order to automate it?
■ How long will you be saving for?
■ If you give something up, how will you make sure you don’t just spend it on something else?
■ If your goal is something like comparing bill providers, when will you do this? Maybe set reminders on your phone.
Setting rules will give a clear idea of what you’re expecting from yourself – and makes it harder to sneak loopholes into your plan.
5 Keep focus
Don’t feel guilty – it’s natural for enthusiasm to wear off. So plan for this early – Step 1 should help. For example, if you’re saving for a car, print out a picture to stick somewhere or set it as your phone wallpaper, as a reminder of your goal.
It could help to keep a regular eye on how much you’ve saved. “Check your balance every month, or every three months, to see what you’ve achieved. Celebrating your progress can keep you motivated,” says Matt.
Sometimes old ways can be the best, popping change in a money box
6 Share your hopes
Make yourself accountable by telling your partner, friend, or a family member about your savings goal and your plans to reach it.
■ The Money Talks exhibition runs at Leeds City Museum until June 26