Every year retailers spend millions of dollars marketing the latest styles and gadgets as must have for the back to school season. I remember when going shopping for school clothes meant just that. We were shopping for clothes. Now parents are pressured into spending hundreds of dollars on back to school items that include ripped up jeans, $200 boots, lap tops, tablets, and even cell phones.
It may be too late this year, but the average American family can avoid debt next year by setting up a special savings account. Check with your financial institution, many of them have these accounts as sub accounts to your regular account so there is no need to remember additional account numbers.
Simply take the amount you spent this year and divide that number by the number of pay checks you get in one year. Starting with your next check put that amount into that special savings account. Even as little as $20 every two weeks will add up to $520 by this time next year. If you have your paycheck direct deposited into your account, chances are your financial institution can automatically put that money right into your special account. The money will be out of sight and out of mind until next year when you need to go school shopping.
This type of saving is called a Set-A-Side savings plan and it can be used for just about any reason you need. My wife and I currently have 10 special savings accounts that money gets deposited into every 2 weeks. We use this type of savings plan for Christmas shopping, vacations, home repairs and more. For more information about creating a savings, spending or debt reduction plan, contact us at 888.698.0333 or visit us on the web at www.livefinanciallysmart.com.