Creating a savings habit and saving on a regular basis can help families make progress toward their FEM goals, as well as provide a cushion for unexpected expenses. Sometimes there just isn’t enough money to save at all. But whenever it is possible, even saving small amounts every week can add up and make a big difference later.

Ideas for Action

1. Develop a savings goal.

Staff can support families in deciding what they would like to save for. Some families may need to save money to handle an emergency. Others may want to focus on saving for a big purchase, such as a vehicle, a home, education, or retirement.

• "Which of your goals are tied to saving?”
• “What do you want to save for?”
• “Why is saving important to you?”

• Setting SMART Goals (worksheet)

2. Make budgeting changes.

Once a family has decided to save, they have to find the money to do so— either by spending less or earning more. Staff and families can discuss where savings might fit into their budget, or what change they would like to make so they can begin saving.

• "What needs to change for you to begin saving, or to increase your savings?"
• "What will help you stick to the changes you decide on?”

• Cutting Expenses (worksheet)
• Increasing Income and Benefits (worksheet)

3. Decide where to save.

Staff can support families in determining the best place to keep their savings. There are many places that families can keep their savings, from traditional savings accounts to specific account types to cash methods.

• "What types of savings accounts have you learned about?”
• “How accessible do you want your savings to be?”

• Finding a Place for Savings (worksheet)

4. Make savings automatic.

Staff can inform families of the benefits of moving money into a savings account automatically, perhaps via an automatic transfer, or by making a recurring deposit to a retirement account. Staff can support families in taking the steps to set up these processes.

• "I know of a few tools that can automatically move your money into your savings. Would you be interested in that?”

• Looking for an easy way to save money? Make it Automatic (blog post)

5. Create a savings plan.

Staff can support families in determining what steps they need to take to reach their savings goal. Staff can refer back to the seven steps for setting and reaching goals with families.

• " What are the steps you want to take in the next weeks? Months? Years?”

• Savings Plan (worksheet)
• Save like Mike (video)

Partner with a local financial institution, foundation, or community partner to offer incentivized savings programs to parents in your Head Start program. Community organizations may be interested in partnering with you to set up programs that help Head Start parents increase their savings. Some of these organizations may even have programs already in place. If you are hoping to partner with a financial institution, it may be helpful to remind them of the benefits under the Community Reinvestment Act. Because of this act, the U.S. Treasury’s Office of the Comptroller will more favorably consider a bank that offers community development services (such as Individual Development Accounts or Children's Savings Accounts) when the bank is applying for new charters, branches, or expansions.

• America Saves (resource collection)
• Save and Invest (article)
• About Individual Development Accounts (article)
• An Essential Guide to Building an Emergency Fund (guide)

Last Updated: September 7, 2023