Factsheet: Saving money
ONLINE TEXT VERSION - March 2012
Why is it a good idea to save money?
People save money because they want to buy something in the
future (a savings goal) or to have money if something goes wrong
How do I start to save money? Ask yourself these questions:
- What do I want to save for?
- How much money do I need to save?
- How much can I save each time I get paid?
- How long will it take me to reach my goal?
Have a plan so you can reach your savings goal
Once you start saving money, keep your savings in a bank, credit
union or building society (so you do not use your savings goal
money for other things).
- Saving money is putting some money away to use in the
- Saving money helps you pay for things that cost a lot of
- Having money saved helps you when you have sudden or unexpected
Case study: Fran starts savings for emergencies
Fran is a single mum with two young children. She works parttime
as a receptionist in an office. She has enough money in her purse
for food and bills but often worries if something needs to be fixed
that she might not have enough to pay for it.
Fran decides to prepare a budget. She sits down one night and
writes down her income and expenses.
Even though she does not have a lot of money left after paying
all her bills, Fran decides she can start to save a small amount.
She decides she does not have to buy 3 coffees a week when she
works. If she buys only 1 coffee a week it means she can save $10 a
week. Fran thinks this might be hard but she will give it a
The first week Fran cut down to 2 coffees, and over the weeks
she got used to only buying 1 coffee. Each week Fran could see her
savings account grow. This made her happy.
Fran decides to put the $10 a week into her savings account for
emergencies. This way she will have enough money to pay for
unexpected expenses, things she has to pay for all of a sudden.
Three months after starting her savings account for emergencies,
Fran's car battery stopped working and she needed a new one. In the
past, she would not have had enough money to buy a new battery.
Now, Fran has $120 in her savings account for emergencies and could
buy a new battery, which cost $90, right away. She could only do
this as she had enough money in her savings account for
Where to get more information
For more information about insurance, visit MoneySmart or call
1300 300 630.
For more information about saving money, visit MoneySmart or
call a Centrelink Financial Information Service Officer on 13 23 00
to help you make a savings plan.
Last updated: 08 Sep 2015