Moms are chock full of advice, but when Renee Kwok talks to her daughter about money, her words may very well carry twice the weight.
Kwok is a certified financial planner and the CEO of TFC Financial, a $1 billion financial planning and asset management firm based in Boston.
” data-e2e-name=”embed-container” data-media-container=”embed”>
She tells her daughter to “work hard and save most of your money. The three-bucket philosophy endures today: spend a little, donate some — and save most.” But, Kwok says, it’s what you do with your savings that matters most.
1. Put your savings in a high-interest account
“You can’t collect interest or grow your stacks of cash if they are sitting in an envelope in your desk drawer,” Kwok tells her daughter.
A high-yield savings account or money-market account is often the best place to keep savings so it grows, but remains easily accessible. While you won’t wreck your financial life by not storing savings in a high-interest account, your money will almost certainly lose value thanks to inflation.