Why Saving Matters More Than Ever
Saving money can feel challenging, especially when life throws unexpected expenses your way. But with the right strategies and tools, building a strong financial foundation is not only possible, it’s empowering.
With inflation and rising costs affecting household budgets, many Americans are living paycheck to paycheck. Even in tough times, adopting smart savings strategies can help you stay on track and reach your financial goals.
Common Savings Pitfalls and How to Avoid Them
Before diving into savings strategies, it’s important to recognize common mistakes that derail progress:
- Overspending: Dining out, impulse purchases, and luxury items can quickly derail your savings goals.
- No Budget: Without a clear budget, it’s easy to lose track of where your money goes.
- Lack of Goals: Saving without a purpose can lead to inconsistent habits.
The good news? These challenges are solvable with a strategic approach.
Five Proven Strategies to Boost Your Savings
Saving doesn’t have to be overwhelming. These simple strategies can help you stay consistent, build momentum, and make real progress toward your goals.
1. Try a Savings Challenge
Make saving fun and manageable by breaking it into smaller goals. The 52-week challenge is a great example: start by saving $1 in week one, $2 in week two, and so on. By the end of the year, you’ll have saved $1,378 - without feeling overwhelmed.
2. Map Out Major Purchases
Planning ahead for big-ticket items like cars or appliances can help you take advantage of seasonal sales and promotions. Use online tools to track prices and set alerts so you can buy at the best time.
3. Refinance or Consolidate Debt
High-interest loans can eat into your savings. Consider refinancing your mortgage or consolidating student loans to reduce monthly payments and free up cash for savings.
4. Save Your Tax Refund
Instead of spending your refund, consider depositing it into a high-yield savings account or using it to jumpstart your emergency fund. It’s a simple way to give your savings a boost.
5. Cancel Unused Subscriptions
Streaming services, apps, and memberships can quietly drain your budget. Audit your subscriptions regularly and cancel those you don’t use. Redirect those funds into your savings account.
Evaluate Your Current Savings Plan
Every so often, check in with yourself:
- What are you saving for?
- Is your goal short-term or long-term?
- How much do you need, and by when?
- Are your current savings habits helping you reach that goal?
M&T Bank’s Money Mentor tool can help you forecast your savings growth based on your deposit habits and interest rates.
Choose the Right Savings Account
M&T Bank offers a variety of savings products tailored to different needs:
- M&T Preferred Money Market: Unlock the potential to earn higher rates as your balances grow.
- M&T Premium Savings: Save for your goals, while still having money available when you need it.
- Relationship Savings: Enjoy convenient online access and monitor your account while easily avoiding monthly maintenance charges .
- Starter Savings: Is your child or grandchild under 18? Learn about the M&T Starter Savings Account , where there is no monthly maintenance charge.
Consider Certificates of Deposit (CDs)
CDs are a smart way to earn more on your savings with guaranteed interest rates. M&T offers terms ranging from 32 days to 72 months, allowing you to choose the option that best fits your financial timeline. CDs are FDIC-insured and can be a great tool for long-term savings goals like buying a home or funding education.
Pay Yourself First
One of the most effective savings strategies is to treat your savings like a recurring bill. Set up automatic transfers from your checking to your savings account each payday. Even small amounts add up over time, especially with compound interest working in your favor. Explore other online and mobile banking services that can also help you.
Let M&T Bank Help You Save Smarter
Whether you're just starting out or refining your savings strategy, M&T Bank is here to help. Our experienced Relationship Bankers can guide you through setting goals, choosing the right accounts, and building a personalized savings plan. You can also explore and apply for savings and CD products online or visit your local branch for one-on-one support.
Ready to take control of your financial future?
Visit mtb.com to explore savings options, use our calculators, and start building a strategy that works for you.
No monthly maintenance charge on Relationship Savings if you maintain a minimum daily balance of $500 or if you have a personal checking account with M&T Bank or by making at least one deposit in your Relationship Savings account during the monthly service charge cycle. Even when no monthly maintenance charge applies, M&T checking, savings and money market accounts may be subject to other transaction and service fees, including overdraft fees, as noted in the Specific Features and Terms for each account and the Additional Fees and Fees for Use of Electronic Banking Card for Consumer Checking and Savings Accounts, which are available on request at any M&T banking office or through M&T’s Contact Center. Overdraft fees will not be charged to a MyWay Banking account.
M&T Starter Savings accounts can only be opened by individuals under 18 years of age. Eligibility to maintain an M&T Starter Savings account does not end when you reach 18 years of age.
Even when no monthly maintenance charge applies, M&T checking, savings and money market accounts may be subject to other transaction and service fees, including overdraft fees, as noted in the Specific Features and Terms for each account and the Additional Fees and Fees for Use of Electronic Banking Card for Consumer Checking and Savings Accounts, which are available on request at any M&T banking office or through M&T’s Contact Center. Overdraft fees will not be charged to a MyWay Banking account.
This article is for informational purposes only. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. Please consult with the professionals of your choice to discuss your situation.
Use of M&T Digital Banking requires an internet connection and compatible device. Availability and performance may vary based on your device, network, or other factors outside of M&T’s control. The service or any of its features may be changed, suspended, or discontinued at M&T’s discretion. While M&T Digital Banking is free for customers with an eligible account, fees may apply to certain optional services. Carrier messaging and data rates may also apply. See the Digital Services Agreement for more details.