A Penny Saved is a Penny Earned

Guest Blogger Kari Ure, M.S.
USU Extension Assistant Professor

Save money. Build an emergency fund. Prepare for a rainy day. Get out of debt. These are great goals, but i t can be challenging to know how to manage financial resources to make financial progress. Small, consistent changes in money spending can have big results. 

Here are a few money saving tips. Start with just one and add more over time:

• Evaluate spending emotions and habits. Recognizing tendencies in spending related to feelings and habits can improve future financial decisions. Identifying patterns of purchases made when hungry, lonely, frustrated, happy, on payday, with family or friends, etc. can improve future spending decisions.
• Practice the Step-Down Principle. Is there a lower cost alternative that will still meet the need or want? Examples include skipping the drinks with a meal out, renting a movie rather than the theatre, renting or buying used instead of buying new.
• Evaluate recurring expenses. These expenses include phone, internet, cable, memberships, subscriptions, bank fees, etc. Decreasing recurring expenses even just a few dollars adds up over time.
• Make it a game. Individuals, families, or friends can be creative with saving by trying no spend Mondays, sack lunch Tuesdays, finding free entertainment options for a week or a month, or any other challenge that will save money. Keep the game simple and fun. If there is too much constriction during the game, it can lead to overspending later.

Financial knowledge is  important i n making changes, but the application of that knowledge is the key to seeing results. Financial lifestyle changes require effort and are a gradual process.

For more financial resources visit: https://extension.usu.edu/finance/
References: 

• Collins, J. M., & Holden, K. C. (2014). Measuring the impacts of financial literacy: Challenges for community-based financial education. New Directions for Adult & Continuing Education, 141, 79–88. doi: 10.1002/ace.20087
• Shelton, V. M., Smith, T. E., & Panisch, L. S. (2019). Financial therapy with groups: A case of the five-step model. Journal of Financial Counseling and Planning, 30( 1), 18–26. doi: 10.1891/1052-3073.30.1.18