Save for a secure financial future during America Saves Week
By Rebekah Hall
U of A System Division of Agriculture
April 9, 2025
Fast Facts:
- America Saves Week is April 7-11
- Set up automatic savings and create emergency fund
- Prioritize paying down debt
(1,027 words)
(Newsrooms: With graphic)
LITTLE ROCK — For many families living paycheck to paycheck, planning for the future can feel daunting. That’s why America Saves Week, which runs from April 7-11, encourages Americans to make a financial plan and set savings goals.
Each day of America Saves Week, which began in 2007, focuses on a theme to help Americans successfully commit to saving. Laura Hendrix, extension professor of personal finance and consumer economics for the University of Arkansas System Division of Agriculture, says setting up automatic savings is key to getting started.
“Saving automatically makes it easier to save money,” Hendrix said. “Use direct deposit or set up an automatic transfer from checking to savings. If you don’t see it in your checking account, you will be less likely to spend it.”
Interest rates can vary depending on the institution and type of account, and Hendrix said consumers should shop around for interest rates on savings accounts, while keeping in mind that these rates may also come with a required minimum balance and potential fees.
“For longer-term savings, certificates of deposit, or CDs, may offer even higher interest rates,” Hendrix said. “Traditional banks, online banks and credit unions are some of the financial institutions you might consider. Be sure to use a financial institution that is FDIC insured.”
Saving for the unexpected
Hendrix said an emergency fund “serves as a safety net to protect your financial stability from unexpected expenses.”
“Car repairs, medical co-pays, income loss from missed days at work, home repairs and other surprise costs can happen at any time and put a dent in your monthly spending,” Hendrix said. “Having emergency savings to cover these can keep you from having to resort to using loans or credit cards that may cost you in interest and fees. Everyone should have an emergency savings fund.”
For someone just starting an emergency fund, Hendrix suggests setting a goal of $500, eventually saving enough to cover at least two months of expenses. After building a solid emergency fund, Hendrix said it is important to save toward other goals, such as retirement, a down payment for a home, a new vehicle or vacation.
Saving for major milestones
Though it can be difficult to imagine saving for the future if day-to-day financial needs are overwhelming, Hendrix encourages people to view a financial plan as a tool for achieving life goals.
“It’s critical to start with a financial plan that’s unique to your dreams and financial situation,” she said. “The purpose of a spending plan is to help you attain the life you envision for yourself. Spend some time thinking about what you want your life to look like in 5 years, in 10 years, and when you retire. How can you use all your resources to make progress toward your dreams? Examine expenses and income to look for ways to cut expenses and use money to help reach your goals.
Paying down debt is saving
A critical element of ensuring future financial security is using debt to one’s advantage, rather than falling victim to it.
“When used properly, debt can be used to acquire appreciating assets and can help build your credit score,” Hendrix said. “However, debt can easily become a trap.”
Hendrix said one way to check if one’s non-mortgage debt is too high is to calculate a debt to disposable income ratio.
- Add the total of all monthly debt payments, excluding mortgage.
- Divide this figure by your net disposable income.
“Less than 10 percent is best,” Hendrix said. “Higher than 16 percent, and you may be getting in over your head. Aim for a ratio of 15 percent or lower.”
Hendrix shared a few other ways to tell if one is managing debt wisely:
- You can pay more than the monthly minimum on credit cards, or you pay balances in full every month.
- You can make ends meet and pay all monthly bills on time.
- You maintain an emergency savings fund that is enough to cover at least two to six months of expenses.
If one is worried about their level of debt, Hendrix said there are several repayment options available.
“One method is to pay off the card with the lowest balance first, then take the money you were paying monthly toward that card and use it to pay off the card with the next lowest balance,” Hendrix said. “Another method is to use all of your extra resources to pay off the card with the highest interest rate. Pay it off as soon as possible and use the money that would have gone toward that payment to start paying more on the credit card with the next highest balance.”
Hendrix suggested visiting powerpay.org to learn more about these and other repayment options, as well as using the tools and calculators on Power Pay to determine the best repayment plan.
Credit reports
Consumers can check their credit regularly at annualcreditreport.com, where reports are available from each of the three credit reporting agencies: Equifax, Experian and Transunion. Credit reports are free, but a small fee is required for the credit score. Free credit scores may be available from other places, such as Credit Karma, or some credit card statements.
“Credit scores for most scoring models vary from 300 to 850, and the higher the better,” Hendrix said. “Scores above 700 will qualify you for better interest rates. Lenders, landlords, insurance companies, potential employers and others may look at credit scores.”
To improve credit scores, consumers should make regular on-time payments, keep balances low in relation to credit limits, use a variety of types of credit and use credit to maintain a credit history, Hendrix said.
Money talks
Though talking about personal finances can feel taboo, Hendrix encourages individuals and families to have open conversations about money.
“Talking about money can help consumers learn about good money management and ways to build wealth,” Hendrix said. “However, it’s also critical to avoid misinformation. Be sure to find reliable sources when learning about financial management. Like any skill, seeking personal financial knowledge is an ongoing quest for those on the road to financial success.”
To learn more about personal finances, visit the Cooperative Extension Service’s Personal Finance page.
To learn about extension programs in Arkansas, contact your local Cooperative Extension Service agent or visit www.uaex.uada.edu. Follow us on X and Instagram at @AR_Extension. To learn more about Division of Agriculture research, visit the Arkansas Agricultural Experiment Station website: https://aaes.uada.edu. Follow on X at @ArkAgResearch. To learn more about the Division of Agriculture, visit https://uada.edu/. Follow us on X at @AgInArk.
About the Division of Agriculture
The University of Arkansas System Division of Agriculture’s mission is to strengthen agriculture, communities, and families by connecting trusted research to the adoption of best practices. Through the Agricultural Experiment Station and the Cooperative Extension Service, the Division of Agriculture conducts research and extension work within the nation’s historic land grant education system.
The Division of Agriculture is one of 20 entities within the University of Arkansas System. It has offices in all 75 counties in Arkansas and faculty on three campuses.
Pursuant to 7 CFR § 15.3, the University of Arkansas System Division of Agriculture offers all its Extension and Research programs and services (including employment) without regard to race, color, sex, national origin, religion, age, disability, marital or veteran status, genetic information, sexual preference, pregnancy or any other legally protected status, and is an equal opportunity institution.
# # #
Media Contact:
Rebekah Hall
rkhall@uada.edu
@RKHall_
501-671-2061