Inside the $5 Savings Plan

November 25, 2015

Image of $5 US Currency in Savings Jar

Abraham Lincoln valued the ability to save for a rainy day and support family members in need. Many people today are following his example, and turning to him for their financial well-being, by saving their pennies and $5 notes featuring the 16th President.

When it comes to personal finance, family budgeting, and saving strategies, there’s a wealth of information online. You’ll find countless suggestions like this for individuals and families that want more control over their spending or to pay down debt: Every time you receive a $5 note, put it someplace where you won’t spend it—a savings jar, sock drawer, or even an envelope.

With diligence, the savings can quickly add up. Consider this, saving one $5 note per week totals $260 in a year. Saving $5 per day would add up to $1,825 in a year.

According to the Diary of Consumer Payment Choice study, which was co-sponsored by the Federal Reserve Bank of San Francisco, the majority of payments under $50 are made with cash, and it’s the preferred form of payment for nearly 30 percent of people.

One thing is clear: Whether using the envelope method to allocate a certain amount of money each month to expenses like groceries, transportation, and other household costs or using the $5 savings idea to put money aside for a rainy day or holiday purchases, people continue to use and save cash.

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