Workshop Three

📘 What You’ll Learn

Why Save?
Saving gives you power. It prepares you for life’s unexpected moments and helps you reach your goals without falling into debt.

1. Emergency Fund = Safety Net

An emergency fund protects you from unexpected problems like:

• 🚗 Car repairs
• 🩺 Medical bills
• 🏠 Job loss

Start small: save $500. Then build toward 3–6 months of expenses. Keep it in a separate savings account.

2. Types of Savings Goals

Type	Examples	Timeframe
Short-Term	Gifts, holidays, phone upgrade	1–12 months
Mid-Term	Car, tuition, relocation	1–3 years
Long-Term	House, retirement, investments	3+ years

3. Compound Interest

Compound interest is when your savings earn interest—and then that interest earns interest. Your money grows faster over time.

If you save $100/month at 5% interest:

• 📈 After 5 years = ~$6,800
• 📈 After 10 years = ~$15,600

Start early. Let time work for you.

4. Pay Yourself First

Don’t save what’s left over—save first. Make it automatic. Set up transfers or cash envelopes to build the habit.