“Regardless of the amount of money, it’s about creating the habit.” -Bert Hines, First National Bank also means a higher rate of interest earned on a savings account. “People want to earn as much interest as they can, and pay as little as they can,” Hines said, “but those rates are tied together.” At most banks, savings interest is compounded daily, and posted to the account quarterly. In her 40 years of experience in banking, Smith told that, while she has seen higher rates than the current ones, she has not seen the current volatility, the speed at which rates have changed. “I’ve never seen this,” she said. As previously stated, however, Federal Reserve rates are not the only factor affecting people’s ability to save. The economy does as well, especially the ever-growing cost of living, limiting 22 BAINBRIDGE LIVING / Summer 2023
the amount of available money to save. “The cost of everything is so high,” Hines said, “so it makes it harder for folks to save, because goods have interest… But that goes back to the philosophy of savings, where you have to be diligent in putting money back for these types of events.” He summarized this savings philosophy in a single phrase: “Don’t save what is left after spending, but spend what’s left after saving.” Smith also stressed the importance of savings accounts; “It is recommended to have three to six months of savings in an account for emergencies. In this higher rate environment, it is the opportune time to put money in a savings account, even if you start small. ” She continued, “There really is no amount too small. You can open up a savings account with as little as $100,