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Strategies to Save

Saving for a Baby: How Much it Costs to Have a Baby and How to Start Saving

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Saving for a Baby
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The topic of money can cause stress when planning to start, or expand, a family. According to the most recent report from the U.S. Department of Agriculture, it’ll cost $233,610 to raise a child born in 2015. The big-ticket expenses detailed in the report are housing, food, child care and education, although this doesn’t include the cost of college.But before you get sticker shock and decide not to have a family, read on. Early financial planning can help you manage the costs of raising a child.

How much does it cost to have a baby?

How much does it all cost is the million-dollar question for expecting parents. The answer can vary due to your circumstances.

“Getting ready to have a baby has really taught me that anything and everything can happen,” said Stanton Burns, a CFP and owner of Oakview Wealth Solutions in St. Charles, Mo. Stanton is expecting his first child and said the biggest cost at the beginning is medical bills, especially if there are complications.

Young families who are experiencing other major life events such as getting married or buying a home can find medical bills particularly cumbersome.

“Nobody shared with me the cost of having a baby from pre-pregnancy to afterbirth. That was all very surprising to me for baby No. 1,” said Angela Furubotten-LaRosee, a CFP and founder of Avea Financial Planning. To avoid any surprises, Furubotten-LaRosee, based in Richland, Wash., recommends asking questions and staying informed throughout pregnancy and delivery.

Here’s a breakdown of common costs you should be aware of when saving for a baby. Insurance may help you cover some of these expenses.

The cost of childbirth

Before-birth costs: There are prenatal appointments, ultrasounds and other health-related expenditures for the mother and child that may come up as they’re needed. In vitro fertilization (IVF) and other fertility treatments may be necessary as well. The average cost of IVF is $12,400 per cycle, according to the American Society for Reproductive Medicine. Beyond health care, there are items such as cribs, car seats and bottles you may need to buy.

Birthing costs: The cost of birthing a child may range from $2,000 to more than $20,000 depending on where you’re giving birth, the type of birth site (birthing center, hospital or somewhere else) and if there are complications during delivery. A 2015 study by the International Federation of Health Plans found the U.S. average for normal deliveries to be $10,808. Healthy pregnancies with normal deliveries generally cost the least amount of money. Cesarean sections with complications can cost more. Some of the cost may be covered by insurance.

Afterbirth costs: After the birth, follow-up appointments, immunizations, formula, diapers and child care costs are ones to factor into your budget. These costs will also vary depending on the health of the mother and baby.

The cost of adoption

Adoptions can cost relatively lower if you adopt from foster care. Expenses may be reimbursed through federal and state adoption assistance services in this scenario. If you opt for a private adoption agency, the cost could range from $20,000 to $45,000. This may include fees for counseling, child care during the transition, legal fees and other expenses for preparation and placement.

The cost of child care

Child care is an expense you should plan for very early, even before delivery, because of the logistics and costs. “Some places have a waiting list [of six months to a year], which is something you need to get ahead of if you plan to send your children to day care,” Burns said. According to the annual Care.com Cost of Care survey, “the average weekly cost for an infant child is $211 for a day care center, $195 for a family care center and $580 for a nanny.”

Start looking for options early to compare costs and secure your child a spot at a place you trust. To help with expenses, you may be able to claim the child and dependent care credit. The tax credit ranged from 20% to 35% of eligible care expenses. You may also be able to take advantage of a dependent care flexible savings account (DCFSA) option, which is an account with tax perks offered by some employers. A tax professional can help you devise a tax plan that’s most beneficial given your household size and income.

Understand how much your insurance will cover

The medical expenses listed above for you and the child may be offset by insurance depending on your health care plan. Reviewing your coverage should be at the top of your priority list.

Know the type of plan you have. Understand what’s covered (prenatal and postnatal) and know how your copays, deductibles and coinsurance work. Your provider may be able to give you a rough estimate of how much birth will cost given your health, delivery plan and medications.

Make appointments with the right doctors. Double-check that the providers you plan to use are covered by your insurance plan. Some plans only cover a specific group of doctors. Other plans allow you to see doctors out of network, but it costs you more.

Know how a high-deductible health plan (HDHP) impacts your wallet. High-deductible plans are ones that offer lower premiums. The trade-off is that you have to pay more before insurance kicks in. “If you end up racking up [medical] expenses, you may be paying a lot more out of pocket than you could have with a traditional plan that has a higher premium and lower deductible,” Burns said.

Burns recommends considering your insurance options before having a baby to see which type of plan will benefit you the most. Look at traditional plans to see if there are potential savings. If you have a HDHP, putting money away for medical bills is something you should also prioritize for out-of-pocket expenses. You can use a health savings account (HSA) to save for medical bills. We’ll talk about the HSA below.

What if you don’t have insurance? You may be able to qualify for health care through the marketplace at HealthCare.gov. Families who earn between 100% and 400% of the federal poverty level may qualify for subsidized costs. You can find out if you qualify here. Families who meet low-income limits may also be eligible for Medicaid and the Children’s Health Insurance Program.

Review your savings options

There are several accounts you can consider when saving for a baby. You’ll want to save up for prenatal costs, delivery expenses and other baby needs as they grow. Some of these saving methods even have tax benefits.

Put away cash in an HSA if you have an HDHP. HSA accounts are only for high-deductible insurance plan holders. HSAs are triple tax-exempt, according to Burns. “You can put money into this account tax-free, it can grow tax-deferred and you can take money out of it without paying taxes either,” Burns said.

Your account must be used for qualifying medical related expenses such as prescriptions, medical care and dental care. You can carry over a balance in your HSA from year to year. Funds can be used for you, your spouse and dependents. The maximum you can deposit into an HSA for 2018 is $3,450 for individuals and $6,900 for families. Learn more about HSA accounts here.

Save in a medical flexible spending account (FSA). FSAs are accounts typically established by your employer to help pay for medical costs. Money contributed to the account by you or your employer is not taxed. Money from the account is meant to reimburse you for eligible medical expenses. The 2018 contribution limit for the FSA is $2,650 per year. Unlike the HSA, there’s a use-it-or-lose-it policy for the year unless your plan has a grace period or carryover provision. Learn more about the medical FSA here.

Use a DCFSA. The DCFSA is another account offered by some employers where you can put in pretax dollars to cover eligible child care expenses for children younger than 13. Eligible expenses may include before- and after-school care, baby-sitting and nanny expenses, day care and summer camp. If you are married and filing a separate return, you may be able to contribute up to $2,500 per year in this account. The contribution limit is $5,000 per household.

Open up a high-yield savings account. For other savings, a simple high-yield savings account could be the right place to put money away. A regular high-yield savings account doesn’t have the same tax perks, but you can get a higher return on your cash.

“The interest rates of most brick-and-mortar banks that you’ll have in your town aren’t that great. [An interest rate of] less than half a percent is what I’ve seen, but there are some online savings account options that offer higher,” Burns said.

Here are some of the best savings accounts to consider while you’re saving for a baby:

Institution
APY
Minimum Deposit Amount
Synchrony Bank
High Yield Savings from Synchrony Bank

2.25%

$0

LEARN MORE Secured

on Synchrony Bank’s secure website

Member FDIC

Advertiser Disclosure.

We'll receive a referral fee if you click here. This does not impact our rankings or recommendations
Barclays
Online Savings Account from Barclays

2.20%

$0

LEARN MORE Secured

on Barclays’s secure website

Member FDIC

Advertiser Disclosure.

We'll receive a referral fee if you click here. This does not impact our rankings or recommendations
Ally Bank
Online Savings Account from Ally Bank

2.20%

$0

LEARN MORE Secured

on Ally Bank’s secure website

Member FDIC

Advertiser Disclosure.

We'll receive a referral fee if you click here. This does not impact our rankings or recommendations

You can check out some of the other best online savings accounts here. Account APYs on some of the highest yield savings accounts range from 2.25% to 6.17%.

Make a family leave plan with your employer

Coming up with a family leave plan is another factor to consider when weighing your financial options. You need to know how long your job will allow you to be on leave and how much you’ll get paid.

“[Some employers] say they’ll give you family leave of, let’s say, three months, but they’re only going to pay you for the first three weeks,” Burns said. Having a spouse go unpaid after having a baby can cause financial strain. Adjust your budget beforehand and bump up your savings to make up for any loss in income you may experience.

Save for education costs

Education costs may not be at the top of your mind when you’re waiting for the water to break, but the earlier you plan, the less financial burden you’ll encounter when it’s time for your children to go off to school. “Every dollar saved is one less dollar borrowed,” Furubotten-LaRosee said.

Savings may not cover the entire cost of tuition or college, but at least it’s something. “You could save in a traditional brokerage account. Because it’s long term, you have 18 years to invest in some blend of stocks and bonds that you’re comfortable with,” Furubotten-LaRosee said.

Here are a few accounts to consider:

Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) accounts: The UGMA and UTMA are both custodial accounts you can use to invest money for your child. Accounts may be made up of mutual funds, stocks and bonds. UTMA accounts can also be used for real estate. You can generally contribute up to $15,000 per year per child without worrying about the gift tax. Couples can contribute up to $30,000 per year per child. The child typically gets access to the funds when they’re between 18 and 21, depending on the state where the account is opened. The money doesn’t have to be used just for school.

529 plan: A 529 plan lets you prepay tuition or set up an investment account with tax benefits for education expenses. Depending on your state, the contributions you make into the savings account may be tax deductible. The withdrawals may also be tax-free as long as the money is used for eligible education expenses. Eligible education expenses include tuition, computers and equipment, room and board, and fees. Up to $10,000 per year from a 529 plan may also be used to pay for tuition at a public, private or religious elementary or secondary school.

Each state has different programs, so you should educate yourself on the type of program offered and its tax perks, Furubotten-LaRosee said. Unlike the UGMA and UTMA account, there are penalties if your child doesn’t use the money for school. The child may pay state and federal taxes on the money, plus a tax penalty of 10%.

There’s a lot to think about when saving for a baby. Adding another person to the family is a lifestyle change. Take a look at your spending and budgeting habits to make room for upcoming expenses for the child, and review the options above to make a smooth transition.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Taylor Gordon
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Taylor Gordon is a writer at MagnifyMoney. You can email Taylor here

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Strategies to Save

Five Easy DIY Repairs That Can Save You Money

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

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If you’ve always relied on your landlord or a contractor to fix things in your home, you may be tempted to just pull out your phone the next time something breaks. But as many seasoned homeowners will tell you, it’s not always worth dialing a professional — especially if you’re dealing with a simple fix that almost anyone (even you) can master.

Not only are contractors sometimes hard to book for smaller jobs, but their costs can add up quickly, experts say. “It’s often pretty expensive to have somebody come and fix something that you might be able to fix really easily with an inexpensive part,” said Don Vandervort, founder of the home improvement site HomeTips.com.

It can also be empowering to tackle a job yourself, says Danny Lipford, host of the home improvement show “Today’s Homeowner.”

Just be prepared for some surprises — especially if you’re a first-time fixer upper.

“Keep a sense of humor,” says Los Angeles resident John Morell. When Morell decided to install wood floors in his home, he underestimated just how tricky the job would be to finish. It took him twice the amount of time that he expected, and he made a number of mistakes. But he doesn’t regret trying, he says — “It came out great.”

5 easy DIY repairs

If you don’t have a lot of experience wielding power tools or taking things apart, try to stick with smaller projects and work your way up, Vandervort said.

There’s no shortage of relatively simple projects that you’ll likely be able to do yourself. Most will take just a fraction of the time it would take for you to call and then wait for a professional. For example, some projects that you could take on now before working your way up to bigger jobs include:

Fixing a leaking faucet

Cost to hire a professional: $200 or more, according to HomeWyse.
Cost to do it yourself: As little as $2.48 to $30 or more, depending on the parts you need.

This classic home repair project often just requires a screwdriver, pliers, a wrench and some basic know-how to complete. Before you call a plumber, look for some step-by-step instructions and try fixing the problem yourself. “Taking apart a bathtub or shower valve that’s defective or a kitchen sink that’s dripping or not working properly — those are some pretty easy repairs,” Vandervort said. “They usually involve taking the handle off and opening up the body of the valve and replacing a washer or a cartridge inside the valve.”

You may need to purchase some individual parts, like a new O-ring or a faucet repair kit, but there’s a good chance you won’t have to spend more than $5 to $20.

“It depends on the make of the faucet,” Vandervort said. However, a lot of common faucet parts are available at home improvement stores. Just make sure you bring the parts with you when you go to buy a replacement, he adds; that way, you don’t accidentally buy one that doesn’t fit. “That’s the case with parts of almost anything you’re fixing,” he says.

Rescuing a jammed up garbage disposal

Cost to hire a professional: $200 or more, according to HomeWyse
Cost to do it yourself: Potentially $0 if you held onto your disposal wrench; less than $5 if you need a new L-shaped wrench

According to Vandervort, a malfunctioning garbage disposal is another common household problem that’s often relatively easy to fix. Often, people don’t realize that reviving a locked garbage disposal can sometimes be as easy as pressing a reset button at the bottom of the disposal, he says.

You may also be able to unclog it with the help of the L-shaped hex wrench that came with your appliance. “You stick this hex wrench into the bottom hub, you crank it and it breaks free whatever you have in the garbage disposal,” Vandervort said.

Replacing broken or dated hardware

Cost to hire a professional: $65 to $200 or more, according to HomeWyse
Cost to do it yourself: $3 to $10 or more, depending on the part

These days, hardware parts are often so standardized that it’s relatively easy to find a replacement if you need one, says Lipford. Just make sure you carefully compare your old hardware to the new hardware that you’re considering purchasing, he says – especially if you’re trying to replace something that has a lot of parts that need to match, such as a cabinet hinge.

With the help of a screwdriver, you can swap out basic drawer knobs for something more stylish, or purchase new knobs for interior doors that aren’t closing properly.

“We had a few where the door would not latch,” said Stephanie Tilton, who runs the blog Dogwood DIY and has fixed up several houses. However, removing the old, defective doorknobs and replacing them with new ones was relatively simple, she says.

Working with hardware isn’t foolproof, though, so be careful. For example, New York City resident Ellen Sheng says her husband tried to fix a loose hinge on a bathroom cabinet by repositioning it and wound up botching the job so badly he later had to duct tape part of the cabinet. Now, she says it looks like Frankenstein. “I think he watched some YouTube videos and was like, ‘I’m just moving the hinge; how hard could it be?” Sheng said.

Repainting the interior or exterior of your home

Cost to hire a professional: $300 to $700 or more, depending on the job, according to HomeWyse.
Cost to do it yourself: Less than $50 for a smaller project.

One of the easiest, most cost-effective DIY repair jobs is to paint an area of your home that sorely needs a refresher, Lipford said. “There’s no better value that you can bring to something without almost no tools and limited skill than painting,” he said. “It could be painting your mailbox. It could be painting your front door, which is a significant return on your investment.”

You could even paint the sides of your home gradually over time, he says, rather than hire a painter to do it all at once.

Unlike other home improvement projects, painting is relatively low risk, Vandervort said. “You can easily correct any mistakes that you’ve made,” he said. “It’s not permanent and it gives you an opportunity to express your creativity and personality.”

Just be sure to follow some basic safety protocols before you pick up a brush, he says. For example, make sure you have a solid ladder and are comfortable using it if you plan to paint some hard to reach areas. Also be sure to test any paint from before 1978 for lead – especially if you plan to scrape the paint from older woodwork.

Fixing a drafty attic

Cost to hire a professional: $800 to $1,500 or more, according to HomeWyse
Cost to do it yourself: Around $145 to $500 or more, according to Home Advisor

Even repair jobs that seem big or intimidating can turn out to be relatively simple or rewarding. For example, Danny Lipford recommends adding insulation to your attic in order to save money on your next energy bill. “One of the least sexy home improvement projects you can do is putting insulation in your attic,” he said. But it can later make it much cheaper to heat and cool your home.

Installing insulation can come across as complicated, so you may be tempted to hire help rather than attempt it on your own. But if you have the time and energy, you can do it yourself, Lipford said.

You don’t necessarily need to do the whole attic at once, he adds. “You might just do one corner of the house,” he said. With every little bit that you do, “you immediately are getting money back.”

The bottom line

Tackling your own repair and home improvement projects can be a great way to save money and build your confidence as a homeowner. Starting out with small, low risk projects can also help give you the experience and foundation you need to move on to bigger jobs. “It gets you comfortable and more confident with using tools,” Vandervort said.

Just try not to get too overconfident right away. Some projects may seem like they’ll be easy, but they require far more skill and craftsmanship than you might realize, Lipford said. For example, you’ll find a number of YouTube videos and articles teaching you how to finish drywall. But even experts struggle to get the finish right.

“I’ve done drywall for 40 years,” he said. “I still can’t stand it. I still have problems with it all the time.”

There are also some projects that are just too dangerous to do yourself, such as fixing your home’s wiring, or are too risky to take on without the help of a professional. For example, if you attempt to sand your own wood floors, you could accidentally ruin them by sanding too far into the floor, Vandervort said. Similarly, a bad plumbing job can force you to go without water until it’s fixed.

“Avoid things where a high level of craftsmanship is important to the end result,” Vandervort said. “Craftmanship is something that becomes very visible in certain projects.”

If you’re not able to match an expert’s quality on something that’s highly visible, then you could come to regret trying to do it by yourself.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Kelly Dilworth
Kelly Dilworth |

Kelly Dilworth is a writer at MagnifyMoney. You can email Kelly here

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Strategies to Save

Best Money Savings Apps

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

best mobile apps
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Saving money isn’t always as simple as the oft-prescribed “put it away and don’t touch it” advice makes it seem. With financial concerns constantly tugging at our attention, it can be difficult to find the time and money to save for future goals, events or the unavoidable emergency.

If the savings aren’t there when you need them, you may finance a purchase or cover an emergency with debt like a credit card or personal loan. In a pinch, those tools can be invaluable. But taking on debt should generally be considered a last resort, as carrying debt comes with its own risks.

Luckily for the tech-savvy, the fintech revolution gave rise to several mobile apps designed to help you save money — and make saving a bit more interesting, to boot. Read on to discover the best money savings apps to help you save for short term goals like a vacation, long term goals like a home or college education, and pad your all-too-important emergency fund.

Best money savings apps to help you save daily

Consistency is the root of wealth-building. That said, it follows that saving a little bit of money every single day can be a good practice to start building a wealth mentality. It also happens to be a great way to save money without feeling drastically penalized today to serve your future goals, since you can split your saving into small chunk sand meet targeted saving goals. The following money savings apps can help you get into the habit of saving a little bit of money every day.

Best for saving money on a tight budget: Joy

App Store: 4.3/5, Google Play: n/a
If you’re on a tight budget, the Joy app may be a great way to find money you didn’t think you had.

This free iOS app analyzes your income and spending habits and calculates how much money you can safely save each day without breaking your budget. The Joy app won’t automatically make the transfer for you, so you’ll have to open up the app and decide whether or not to save the money. If you say yes, the funds will be transferred from your linked account to an FDIC-insured Joy savings account.

You can also elect to save more or less than the amount suggested, as you can move money into your Joy savings account anytime. If you need a reminder, set up a daily notification to remind you to make the transfer.

When you’re ready to spend your savings, you can transfer the funds from the Joy savings account to an external account.

Another popular app, Digit, deserves honorable mention. Digit calculates how much you can save each day and will make the transfer for you, automatically — however, Digit costs $2.99, so it may not be a viable option for those on a tight budget.

Best for saving up an emergency fund: Chime Banking

App Store: 4.7/5, Google Play: 4.4/5
Standard financial advice suggests keeping three to six months worth of monthly expenses stashed away in an emergency fund, just in case you run into a financial emergency. In reality, however, around 40% of Americans report they aren’t able to cover a $400 emergency out-of-pocket, while the average U.S. monthly household expenditure is about $5,005.

Chime, a mobile-only bank, hopes its app’s automatic savings features may just help you beat the status quo and make it a little less painful to finally build up your emergency fund. The Chime app is free and available for both iOS and Android devices.

When you enroll in direct deposit and Save When You Get Paid, Chime will automatically transfer 10% of each paycheck into a seperate Chime savings account for you. If you’re enrolled in Chime’s automatic savings program, the bank will also automatically round up each transaction made with your Chime Visa debit card and deposit the amount into your savings account, too.

Best for saving money for a vacation: Tip Yourself

App Store: 4.6/5, Google Play: 4.4/5
Tip Yourself is a free app that may help you save for your dream trip. With the Tip Yourself app, available on iOS and Android devices, you can reward yourself for positive behavior by transferring a little bit of money to your digital tip jar each time you accomplish a personal goal.

If you make it to the gym on a Tuesday, for example, tip yourself $1 (or whatever amount you feel you deserve). The same goes for every other personal goal you may have, such as getting to work earlier or calling your parents once a week.

The app aims to help its users build savings habits and motivate them to stay more consistent about their personal goals, too. The app also has a social feed, so you can share your wins — big and small — with your peers in a supportive community. If you’re into maintaining a streak, there is also a calendar that keeps track of the days you did tip yourself.

With Tip Yourself, you can set a savings goal for your next vacation. When you reach your goal, you’ll feel confident taking a vacation knowing the money you’re spending is your reward for keeping the promises you made to yourself.

Best money savings apps to help you save monthly

Saving money on a monthly basis for large goals doesn’t have to come down to what’s left over at the end of the month. And it won’t, if any of the following money savings apps have anything to do with it. The apps below encourage users to set aside the funds when they have them, before the money is absorbed into their monthly expenses.

Best for saving money for a car: Qapital

App Store: 4.8/5, Google Play: 4.5/5
A car is a fairly large savings goal to meet, but it can seem less daunting if you can save a bit toward your vehicle each time you are reminded why you need the car in the first place — that’s where Qapital comes in.

With Qapital, you can set customizable autosave rules for just about anything, so you can save money simply with the actions you take living your life. You can set a custom rule; for example, you can save a certain amount of money each time you pay for a public transit ticket or fill up the tank for that friend who drives you to work.

Qapital has a bunch of other ways to help you save up for a car, too. With the round up rule, the app will round up all of your transactions and automatically transfer the difference to your designated goal account. So each time you pay for anything, you will have a little bit of money going toward your car. The spend less rule saves whenever you spend less than a certain amount with a retailer or in a certain spending category, and the guilty pleasure rule saves a certain amount whenever you spend on a chosen guilty pleasure, like ordering takeout.

When your goal is funded, you can withdraw the funds and spend it on your chosen vehicle. The free Qapital app is available for both iOS and Android devices.

Best for saving money for a child’s future: Kidfund

App Store: 4.8/5, Google Play: n/a
Whatever your child’s future holds, having the money on hand to help them accomplish their goals will come in handy. With Kidfund, not only can you contribute to your child’s future success, but so can your family, friends and anyone who supports your child’s dreams.

You can open a dedicated savings account for each of your children and set a rule to gift money to your child’s account on a periodic basis. For example, you can gift each of your children’s Kidfund accounts $20 each month. Kidfund awards interest based on the balance within the account.

On top of your giving, you can invite your friends and family members to follow your child’s Kidfund account and they can gift money to the account for birthdays, holidays or whatever reason. When the time comes, you’ll have the money waiting in the Kidfund account to fund your child’s dreams.

Kidfund is a free social savings app available only on iOS devices.

Best for saving money for the holidays: Simple

App Store: 3.8/5, Google Play: 4.2/5
Simple is a mobile-first bank that helps you set aside money for future goals. With a fee-free Simple account, you can set and fund financial goals with a target date. Simple will then calculate how much money you need to transfer periodically to reach your goal by your specified target date, based on the frequency you set.

For example, you can set a goal to save $500 for holiday shopping over 10 months and set the frequency to transfer an amount each month. Simple will automatically set aside $50 each month so you’ll reach your goal for the holidays.

The money for the goal will remain in your Simple account, but will be set aside and tagged for that specific purpose. The amount designated toward the goal will be deducted from your total to give show you how much money is safe for you to spend. The Simple app is free and available on iOS and Android devices.

Best money savings apps to help you save in the long term

Saving for long-term goals can be difficult when you can’t see the tangible results of your efforts just yet. Using one of the money savings apps below may help you keep track of the progress made toward your savings goal, so you can stay motivated as you wait, save and watch the investment you are making towards your future grow with time.

Best for saving money for a house: Rize

App Store: 4.2/5, Google Play: 3.7/5
Rize is a free automatic savings app available for both iOS and Android devices. It helps you earn extra money on your savings for a long-term goal (like a home down payment) and offers a high APY on your cash savings. You also have the option to earn even more on your savings by investing the funds. You set a goal amount and how often you want Rize to pull a specified amount of money from your account, and the app will do the rest of the work for you.

You can set investment or cash savings goals. The money saved in a Rize account earns interest on cash savings. If you choose to invest your money, it’s put into exchange-traded funds which earn varying interest rates.

Rize doesn’t charge any fees on your cash savings or require a minimum amount to open an account; instead, it lets you decide how much you want to pay. If you invest your money, Rize asks you contribute a minimum $2 per month to your account and pay an annual 0.25% management fee of your invested assets.

Rize also has a few built-in features to help you reach your goal a bit faster. It calls the features “Power Ups,” and you can turn them on or off at any time. You can use the Accelerate feature to automatically increase your contribution by 1% each month. So if you are saving $100 toward your down payment this month, Rize will increase your contribution to $101 the next month.

Rize also has a Boost feature that calculates how much extra money you have based on your income and spending habits, and automatically transfers up to $5 to your goal whenever “it makes sense,” which Rize says is about once or twice a week.

Best for saving money for college: Clarity Money

App Store: 4.7/5, Google Play: 4.1/5
Clarity Money is a free automatic budgeting and savings app available for both iOS and Android devices. The app helps you save by setting rules for how often and how much you want Clarity to automatically stash away for goals, like paying for next semester’s tuition or funding your child’s college savings account.

Clarity Money also has a few other features that may help you find more money in your budget to save for school fees. The app can analyze your expenses to find where you may be able to cut back on subscription services and free up some of your funds. Its budgeting features display your spending habits and let you know when you are going over your intended budget in a category, so you can adjust your spending behavior before you overspend. Clarity Money does not charge any fees for its services.

Best for saving money for retirement: Acorns

App Store: 4.7/5, Google Play: 4.3/5
Acorns is an investing app popular for letting its users invest the spare change from their daily transactions with its Acorns Core option. With Acorns Core, the app automatically rounds up your transactions to the nearest dollar and invests the difference into your chosen investment portfolios (once you’ve reached a minimum $5 in roundup savings).

Acorns also has a retirement savings feature called Acorns Later. With Acorns Later, you can invest your money in an Independent Retirement Account (IRA) and set recurring contributions from your linked account. You can invest using a Roth IRA, Traditional IRA or SEP IRA. The ETFs in your investment portfolio will automatically adjust to fit your needs over time based on your retirement date and goals. You can’t have Acorns Later without have Acorns Core, and having both costs the user $2 per month. Acorns Core only is $1 per month.

The Acorns app is free and available for both Android and iOS devices, but the Acorns service costs $1, $2, or $3 (with the Acorns Spend checking account) per month depending on what plan you select.

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Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at brittney@magnifymoney.com

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