Still smashing your piggy bank to get to your savings? Then it’s time to switch over to SmartyPig.
SmartyPig is a new way to save money and reach your financial goal. This program, launched in April 2008, is popular throughout the U.S. and in Australia. SmartyPig is a great tool for learning financial responsibility. This online savings solution allows you to create a goal, a student loan, for example, and you can set up a recurring contribution until you reach your goal or only add money when it’s convenient. SmartyPig is FDIC (Federal Deposit Insurance Corporation) insured, which means that your money is protected against bank failures, so you know you’re money is safe. For more information about the FDIC, click here. Find other financial terms for teens here.
Be a SmartyPig
Anyone can have a SmartyPig account! Minors (ages 18 and younger) must be invited by a parent or legal guardian. Creating a SmartyPig account is free, but requires a minimum deposit of $25. And best of all, the interest is currently higher than most banks, money market accounts, and one year CDs. However, the APY (Annual Percentage Yield) may change without notice. APY refers to your earnings on a deposit. For more about APY at about.com, click here.
Make progress toward a financial goal
The unique part of the program is that you can have your friends and family help contribute to your financial goal through an invitation via email. You can also choose to include a link on your Facebook or Twitter accounts to your SmartyPig account so friends and family can contribute to your goal. No banking or personal information is displayed on the website. You have the option of showing your goal, the percentage saved toward goal and how much money you have saved.
Keep in mind that this is ideal for a long-term goal and not as a liquid source of funds, meaning it can take a couple of days to transfer money you’ve accumulated in your savings to your bank account.
If you’re ready to start saving money, check out SmartyPig.com.