A 21st century piggy bank
Where to find it: Smartypig
– www.smartypig.com
Who runs the site: Mike Ferrari and Jon Gaskell founded
Smartypig when their families were looking for a way to save money
for a dream vacation. They were familiar with 529 college funds,
and thought it would be great to have an account where they could
have a little money from each paycheck go automatically into a
savings account.
Who is likely to use the site: The site is perfect for people
who want to save but have a little trouble staying motivated to
leave the money alone until they reach their goal. It is also a
great tool for teaching kids about savings.
A 21st century piggy bank
Where to find it: Smartypig – www.smartypig.com
Who runs the site: Mike Ferrari and Jon Gaskell founded Smartypig when their families were looking for a way to save money for a dream vacation. They were familiar with 529 college funds, and thought it would be great to have an account where they could have a little money from each paycheck go automatically into a savings account.
Who is likely to use the site: The site is perfect for people who want to save but have a little trouble staying motivated to leave the money alone until they reach their goal. It is also a great tool for teaching kids about savings.
Pros: There aren’t many things that can make saving money an exciting experience, but the founders of Smartypig have tried to do just that. They have turned savings into an interactive experience by connecting their FDIC-insured savings accounts with a decent interest rate – 3.9 percent APY – with online social networks.
At Smartypig, users set a goal and a deadline for something they want such as a flat screen TV, a dream vacation or maybe college money. The program will tell them how much they need to save each month to reach their goal, and they can set up an automatic monthly transfer from a checking or savings account. But the super cool thing about Smartypig is that other people can also deposit into the account so friends and family members can easily add to the pot on holidays or birthdays. Users can sign up to have their Smartypig information displayed on Facebook, Twitter or MySpace.
Once users reach their goal, they can withdraw their money in the form of a Mastercard debit card. Users can also choose gift cards from partner retailers which include up to a 6 percent boost so the savings goes even further. Some of the featured retailers include Amazon.com, Best Buy, Home Depot and Pleasant Holidays.
Cons: The only downside is with the economy heading south, it might be a tough time for people to find a little extra money in their budget for Smartypig.
