If you are you looking to save up for a big purchase, and you don’t know where to begin, you may be pedaling the same bike as me. Being an avid cyclist AND a college student makes it hard to save money when you’re already in a bit of a pinch.
I’ve been trying to find the best option to help me maximize my savings so I can purchase a new road bike, and I’ve found several different options. One of these options was a program that allows bank customers to save their pennies when they do a debit card transaction. So, every time I use my debit card, the bank will round up my transaction to the nearest dollar and put the change into the savings account of my choice!
My savings will stack up every day I spend money with my debit card. For example, if I buy my morning latte for $3.29, lunch for $5.06, and go to the movies for $12.82, my total savings for the entire day will be $1.83. Here is a chart that makes it easier to understand:
I calculate that if I sign up for one of these save-the-change programs, I can save, on average, about $2 a day. That’s over $700 a year in spare change! Plus, there’s the option for someone else (a grandparent, parent, or friend) to put their change into my savings account – as long as they bank at the same place. That comes in handy for people with children because they can contribute to a college fund each time they make a debit card transaction.
One drawback of this type of program is that it can make it hard to reconcile a checking account. However, online banking and mobile banking programs help me keep my account balanced because I can check balances and transactions daily.
Not all banks offer this type of program yet, but luckily my bank does. I can’t wait to sign up for the “It Makes Cents” program because that means I am just $2 closer to a shiny new bike today!