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Most Americans say they're financially savvy, are you?

Posted at 6:30 AM, May 01, 2019
and last updated 2019-05-01 10:30:50-04

WACO, TX — Eighty percent of Americans consider themselves financially savvy, according to a survey conducted by Citibank. Yet, one-third of them don't know how much they have in savings.

Financially savvy can mean different things, depending on the person you ask. With a quick Google search, financially savvy means you should have a plan for the future and manage your cash with a budget.

"It's never to late to save," Jennifer Manning said, a partner at Patillo, Brown & Hill, LLP. "If you started out in your 20s saving the dollars have a lot more time to grow. When you're starting in your 50s and you want to retire at 65 those dollars per month have to be larger."

It may never be too late to save, but Manning says its always better to start younger. Jordan Hanks is one of the many that is planning to start earlier. A full-time student with two kids and his wife in active duty, saving is a priority.

"We both had income but with being a full-time student we had to cut back on spending a lot," Hanks said. "It helps to budget a lot easier because you don't have that extra income to save money."

Usually spending money on whatever they wanted in the past, they realize now it's best to sometimes fight the urge.

"Instead of buying that, take that money that you were going to spend on that and put it away," Hanks said.

According to a Citibank survey, American's top two choices to saving are being their own handyman at 58 percent and giving themselves a haircut at 35 percent. Coming in as the third most popular way to save money was using their friends or families subscription log-in to a video streaming service.

Whether you choose to save with a savings account or keep the cash in a safe, either is a viable option. Although, Manning suggests a savings account as your first choice.

"I would encourage you to definitely take advantage of a savings account, of an investment account. You want to have your money grow for you," manning said.

The Citibank survey asked Americans what they were saving for, 42 percent said they were using their savings as an emergency fund.

For more information on money saving tips visit the America Saves website.