Hannah is a New Foundations Participant. She has two young children and this is her first experience living on her own. Before Hannah came to New Foundations, she and her children were living in overcrowded short-term housing. Recently Hannah opened a savings account and made her first deposit. A savings account, and the subsequent habit of saving, is an important step toward financial independence and stability.
Saving money has a wide range of benefits including helps in emergencies, job-loss situations, financing further education, paying for housing and transportation expenses, and reducing debt. Saving money also has emotional and health benefits.
Moving can be a real budget buster, often requiring first and last month’s rent and a security deposit. In addition, the costs of moving (truck, boxes, etc.) and the items needed to set up a home can break the bank without savings. By having a savings account and savings habit, Hannah can break the paycheck to paycheck cycle, have an emergency fund, and plan for her future large expenses including her move to stable housing after her time with New Foundations. Yay Hannah!