The Get Ready Money Podcast

Change Your Savings Mindset

• Tony Steuer

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On this episode of The Get Ready Money Podcast, I spoke with Robin Growley, Managing Director, Head of Consumer Deposits at Bank of America about changing the way we think about money and savings.


 Key take-aways: 

  • What is America Saves Week.
  • Pay yourself first and automate your savings. 
  • Why you should break down big goals into smaller goals. 
  • Align your finances to your values & your goals.
  • Be intentional with your spending - understand the different between needs and wants. 
  • How to balance savings, paying off debt and expenses. 


Connect with Robin Growley:



Resources mentioned:

America Saves Week (here)

Better Money Habits (here)  


Bio: 

Robin Growley is responsible for the strategic direction and growth of our everyday banking, savings, and payments solutions for 42MM consumer clients. In this role, she leads the company’s efforts to provide a full range of consumer deposit products and payments, including checking, savings, CDs, IRAs, Debit Card, Wires, and ACH. Robin is responsible for a $775B deposit portfolio, which has achieved a #1 position for retail estimated deposit market share and U.S. Debit Card Issuer.

 

Robin holds a master’s degree in business administration from Winthrop University and a bachelor’s degree in business administration from the University of South Carolina. She is active in enterprise-wide efforts to support women and Hispanic Latino teammates. She serves on the Deposits and Payments Committee for the Consumer Bankers Association and recently served as a mentor for the Cherie Blair Foundation for Women, which supports female entrepreneurs in low- to middle-income countries.

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The Get Ready Money Podcast and its guests do not provide investment advice. All content is for educational purposes. Guest opinions do not necessarily reflect the opinions of The Get Ready Money Podcast and Tony Steuer.

Speaker 1:

Are you looking to get ready, be prepared and transform your financial future? Then you've come to the right place. This is the Get Ready Money Podcast with Tony Stewart, where Tony has insightful conversations with financial experts who are changing the way we think about money. Catch up on the latest financial trends and hear practical advice from Tony and his expert guests so you can build healthy habits that work, Be empowered with tips for implementing small changes that can have a big impact on your financial future. So sit back and get ready to hear from today's guest.

Speaker 2:

Welcome to the Get Ready Money podcast changing the way we think about money. I'm pleased to be joined today by Robin Gratley. Robin is Managing Director, head of Consumer Deposits at Bank of America. In this episode, we'll be discussing Robin's insights on how we change the way we think about money and our savings. Robin, welcome to the Get Ready Money podcast. Thanks for joining us today.

Speaker 3:

Oh, thank you so much for having me. I'm excited to be here.

Speaker 3:

Yeah me as well, and so you know to get started. You know, tell us a little bit about yourself. What is your origin story? Yeah, so I grew up in a small town where we had one bank and I remember my mom and I going to our local bank and opening my first checking account and savings account, and I would say that's really what piqued my curiosity in banking years and years ago. And then, in 2007, I joined Bank of America and I've been here what's 18 years now, believe it or not, but through that time I've had a variety of leadership roles and now I'm responsible for really leading our strategic direction for everyday banking savings in our payment solution. Important role in terms of ensuring that we are helping our clients. They have needs, not only today, but evolving financial needs, and over our 42 million consumer clients, we want to make sure that we're there to support them in each step of their financial journey.

Speaker 2:

Well, fantastic, and it's nice that there's this more holistic view. But, as you were thinking about that, I remember setting up my very first checking account when I was a teenager with Bank of America.

Speaker 3:

Oh great, I love that.

Speaker 2:

Yeah, it was a few years ago, but I do remember, you know, because you would go physically into the bank and you know that experience, I think, has changed quite a bit but you know, it's still a great memory, I think, for everybody.

Speaker 3:

That's right. Yeah, I mean, it's very memorable and so many of our clients come in as students, youth, young adult when they're opening their first account, whether it's because they had the summer job or they have birthday money, and they really stay with us long term, which is exactly what we want to see, and that's why I think you know, in my role, it's so important as you see, you know the different steps in someone's financial journey ensuring that we're there to support them each step of the way.

Speaker 2:

Definitely, definitely. Well, you know, let's jump into the topic. You know, america Saves Week. What is America? Saves Week Week what is America?

Speaker 3:

Saves Week. Yeah, so America Saves Week is sponsored by a non-profit, america Saves, and that's really focused on encouraging Americans to save money, reduce debt and, overall, develop healthy financial habits throughout the year, including America Saves Week. So this year's theme for America Saves Week is saving for your past, present and your future. So you know, as we think about savings, it's not just today and it's not just this week, but it really is 365 days a year that we need to keep it on our radar and we need to plan and make sure that we do have savings goals.

Speaker 2:

Well, that's fantastic, you know. So let's go a little bit deeper on the goals. Why is it important for people to set savings goals and why is it important for those goals to be realistic?

Speaker 3:

Yeah. So setting savings goals really gives you an idea of, like, where do you want to take your financial journey right, that you can be prepared for your overall financial journey. And what we find is that, you know, as we have conversations with our clients, they really do want to do the right thing, they want to save. But sometimes we know that the hardest part is really just getting started right, and sometimes savings can seem overwhelming. It's like I don't know where to start. I have this big number in my head that I think I need to save and I don't know actually how to do that.

Speaker 3:

And that's where we talk a lot about being able to take those larger savings goals and breaking them down into what I'm going to call your shorter term goals. They're more achievable, right? So if you want to save, let's just say, $1,000 in six months, well, maybe that seems daunting to you. How do you get started? Well, I always like to recommend maybe take, you know, $10 a week and put away. That gives you kind of a timeline and really helps make your goals realistic. And so, ultimately, as you start putting away that $10 a week, you know, think about it. $10, that's really the cost of call it one, maybe two lattes this time, right, I mean. So at the end of the day, it really is usually achievable to start with that smaller amount, putting that away, and then, if you're doing it on a recurring basis which we would love for you to do, like that's going to build that overall savings habit which really helps support you for a successful financial future.

Speaker 2:

Fantastic. Well, you know, let's talk about the accounts, because I know with my son you know he's a young adult we opened up both a checking and a savings account. Is that something you recommend for people to do? To have the separate checking account, maybe to cover expenses, and the savings account?

Speaker 3:

to meet the goals. Absolutely, I love that you all have already taken that step, because that is one thing where we see our customers usually dipping into their savings. Again, everyone has the best intentions, but sometimes we do see our customers who have, you know, their savings within their checking and when they go to make their purchases they'll use what they have you know they've saved up and they don't even realize they're doing it. So, by you know, virtue of the fact that you all already have that separate savings account set up that's going to help protect the funds that you're saving, and already had that separate savings account set up, that's going to help protect the funds that you're saving. And then it also gives you the ability to watch those funds grow. And I think when we all see that we're making progress, progress creates motivation right to kind of stick with that habit. So I love that.

Speaker 3:

And then the other thing you know, when you have that separate savings account, it gives you the opportunity to name the savings account. So, if you know, your son has a specific goal. I mean, I have little boys, identical twins, that are 10 years old, and they are always saving for something right. It's been baseball bats and baseball gear recently, and so you know they can take and name their savings account. You know baseball gear and so every time they look at that savings account they see the funds in it before they take money out. They're able to kind of pause a second and say wait a minute, I'm supposed to be using this for my baseball goal, right? So that's just another tip that I think it's an easy one, but it also just helps us pause and think a minute about what's the purpose of those funds in the savings account.

Speaker 2:

Yeah, well, and I think that's something that is so important is that we don't do with our money is to take a pause. You know some people call it mindful spending. You know I've heard so many different terms for it, but it's really like you say is taking a beat and going. Ok, what do I do? And I think there's a little bit of friction. What do I do and I think there's a little bit of friction that's something I've heard from a lot of my guests is that there's friction between some of us who are old enough to remember I go back before ATMs that you had to go into the bank if you want to get money on a Friday for the weekend, and you know that friction is not there.

Speaker 3:

But that's a great way to create a little bit of friction where you have to transfer money between the accounts and you have to make a conscious decision.

Speaker 2:

That's right. Yeah, it's being present with your money. That's how I like to think about it. That's fantastic. So you know, one of the things that you know is difficult for people to do is, you know, to have. You know, we're telling them to save money for the future. We're telling them to create an emergency fund, we're telling them they need the payoff debt and, of course, they have their daily expenses. What do you feel is the best way for people to balance paying down debt with saving money?

Speaker 3:

Yeah, you know that's a really great question and we get it a lot because sometimes you know it feels like you have to do30-20 rule. So 50% of your income really needs to go to the necessities. So these are things like your rent or your mortgage, your utilities, if you have any type of debt payment, whether that's a credit card, an auto loan, student loan, that those are all things that must be paid right, and so you want to set aside 50% of your income for that. The second category is what I consider your wants, and that's where I think about, you know, what we spend on things that make our life comfortable, things that we enjoy right, that might be the latte that I mentioned earlier, it might be, you know, the trip that you want to take with your family, but those are really, you know, the again, the wants, not the needs. It's the wants, things that make us happy and make us comfortable. And then you have 20%. That was for savings, and so when you think about that 50-30-20, you've covered both your savings right, the 20%, you've covered the debt payment. That's within that 50%, and you've also left a little bit kind of in the middle that 30% to cover things that you want to make your life enjoyable.

Speaker 3:

Now I think what's important to realize is that you know our life changes all of the time and that sometimes that 50, 30, 20 needs to be adjusted to accommodate whatever may have happened. Maybe you've had an unexpected expense and you've had to use some of your savings to cover that, and that's okay. That's, you know, having an emergency fund. That's the purpose of the emergency fund. But you may want to go ahead and be able to replenish that emergency fund, so you may want to put a little bit more towards the emergency fund, which means you take away from your wants, right? Maybe you're going to spend a little bit less, you're going to go out fewer times to eat this month and you're going to use that to rebuild your savings. So again, it's a really good rule of thumb and that helps you kind of go back and look and make sure that, directionally, that you are being able to cover the needs, the wants and savings.

Speaker 2:

Fantastic. I think that's wonderful advice and, for people who are following my program with the Get Ready Movement, that's the recommendation that I have, so you can follow that and find a worksheet on my website to go through that. So you know, as part of that is, do you recommend that people change their flow? As you know, a lot of people save at the end of the month with whatever they have left over. Do you recommend that people automate their savings and do the savings first?

Speaker 3:

Yeah, I'm a big fan of you know, pay yourself first right, and a lot of. You're absolutely right. There's so many great automated savings tools now. The first can be as simple as starting with your paycheck right. I mean, you're able to allocate your paycheck to go into different accounts and if you have that separate savings account, it's easy to allocate a portion of that, just to you know, before it even goes into your checking account. It doesn't have to happen, it can just go directly into your savings account.

Speaker 3:

Also, there's a tool at Bank of America which is, you know, one of my favorites.

Speaker 3:

It's called our Keep the Change tool and so anytime that you use your debit card linked to your checking account, we will take and round up that debit card purchase to the nearest dollar and then transfer the change from your checking account to your savings account.

Speaker 3:

So I always think about that as really it's a set it and forget it, because you're taking that extra change and that's helping you build your savings over time. You're not having to go in put something else on your to-do list to remember, and those are the types of tools that, when you can pay yourself first and you ultimately start seeing your savings grow, it all is all about the again, the momentum that you build, the motivation and then that habit right, and we all get excited when we see we make progress. So, yes, I'm very much a believer in pay yourself first. But you can always do that sanity check if you're paying yourself first and then by the time you get to the end of the month you're like, oh, I don't have enough to, you know, pay my necessities. Well, you're going to want to like revisit that right, but that 50-30-20 rule is always a good foundation to go back to.

Speaker 2:

Yeah, fantastic and I love that. And I think you said something that's very important that I hope people pick up is that it's a habit and that once you start doing this, is that it's easier to do the second time. And also, what you talk about is that once people start seeing success at the end of the year with rounding up the change I've heard that you know that can average $600, $700 for a lot of average Americans you know that's a pretty good chunk of change that you have extra to go towards savings so that these little things do add up. So that's fantastic advice. So, you know, as part of America Saves Week, it's important to teach our kids to also save. So why do you feel that we should teach our kids about money? You know you talked about working with your two kids. Why should we teach our kids to save?

Speaker 3:

Yeah, that's a really great question and it's something that I'm passionate about as a mother and I really believe that when you start talking to children about money early, right, I mean, it really does create that lifelong financial success for them. They're aware of what it is. They're a little bit more in tune when they see you spending, because if you're not having those conversations with them and you're just, you know, paying for something that they've asked for, well, they don't understand where the money comes from, right, they don't understand how much things cost. And I'm a big believer that you know, if you can share your knowledge with your child as early as possible, then you know, then they're going to be set for success over the course of their financial journey. And you know, the other question I get a lot when we talk about children is well, how early is too early to talk about it? Or when should I start?

Speaker 3:

And I always think about, you know, as soon as your child really learns the basics of math, like that's a really simple way to kind of get them engaged. And that as time goes on, like as you're paying for the bill or you're, you know you're as a family, you have game night, introducing something like a monopoly right. It can be simple and fun. Those are great opportunities to not only talk to the children but kind of start to identify those teachable moments. So when you start talking about it, right, they're listening, you've got their attention. But then, as they get a little bit older, really engaging them, helping them learn, you know, to save for the baseball bat, the cleats, the, whatever it may be, those become the teachable moments that really stick with them the rest of their life.

Speaker 2:

Fantastic, and I think what you're talking about, too that really helps, is that you're connecting with your kids something that they're interested in, instead of you know like, hey, let's talk about an IRA. You know your kids are interested in baseball, you know. So that's going to stick with them because they're like OK, I remember when I was a kid that I saved up and I bought my own baseball gear, and that's a memory that's going to create that habit that they'll be able to use as an adult. Like when you talk about the 50, 30, 20 rules, they'll go okay, I know that there's a payoff when I save, and I think that's something, too, that it's hard for people to say okay, well, I need to save for retirement. I'm 25 years old, you know I'm going to retire at 60. That's ancient.

Speaker 3:

So true. It's like a world away, right yeah exactly.

Speaker 2:

So what money myth are you trying to break?

Speaker 3:

You know, I would say, just in terms of that, you don't have to have an emergency fund. Like, if you have a credit card in your wallet, you don't need an emergency fund. The credit card is the emergency. And I don't necessarily agree with that. I think that it's really important, through the habit of savings, that we start out first by building our emergency fund. Like, I think that you know, it's fine to have a credit card, but ultimately, when you have those funds set aside, it helps you. Number one, build the savings habit. But number two, it gives you funds that's dedicated for that purpose, right, the emergency. And if that emergency comes up, you're able to pay for it without having to go back. And you know, and now you've incurred debt, right. So I'm a big believer in fine to have a credit card, but you know, each and every time you use that credit card, you need to pay it off in full. However, to cover those emergencies or the unexpected expenses, you really do need to have that separate emergency fund that you've built up through your savings.

Speaker 2:

That's wonderful advice, and here's a couple other things that I think people can think about, too is if you use your credit card, you're incurring debt, which means you're paying interest, but if you're saving an emergency fund, you're earning interest, and that's a powerful difference. So that's that's wonderful advice. So let's get out the time machine for a minute as we start to wrap up. Is what advice would you give your younger self if you could go back in time knowing what you know now about money?

Speaker 3:

Oh, that's a good question. You know, I would probably say it's the needs versus the wants, right? So I think all too often we find ourselves and you know, you're kind of in the moment you're like, oh, that's a great deal, I gosh, I'll never see that sale again, I might as well just go ahead and buy it. And you kind of step back after you know you buy the dress, the shirt, the whatever it is, and you realize you're like you know, I didn't really use that after all, and that was kind of the opportunity cost of making that impulse decision because you saw something on sale and you know, and you went ahead and you bought it. Then later you really didn't use it.

Speaker 3:

So I always think about, if you know, really being diligent in terms of what I am purchasing. You know, do I need it? If I don't really need it, am I actually going to use it or is it just going to sit there and collect dust? So I think my younger self, I probably wasn't as wise in making some of those decisions. And you know, of course, ultimately things I haven't used over the years I've donated. But I'm a little bit wiser now and I think a bit more about those purchase decisions. In the moment, and even if it's a good deal sometimes, I think you know what I'm just going to leave it on the shelf anyway. I'm not going to buy it because I really don't need it and I'm, you know, probably not going to use it that much. So that would be my time machine.

Speaker 2:

Well, that's awesome and you know I know with my son is. You know, with Instagram and some of these social media things is now all these companies have these drops where you have to like, buy something, you know, within 48 hours and you'll never see it again and it's just, it's overwhelming. So I think that's wonderful advice. So, you know, for any listeners who are younger, this is something you can apply when you see those drops on social media. Or you know, if you're have kids, you know, start talking about that, because they're getting hit up with this stuff on social media all the time. So that's valuable advice. So, robin, to wrap up, what is your number one tip on changing the way we think about money?

Speaker 3:

You know, I would just say being very intentional with your finances. I mean, sometimes, you know, we think more vaguely about our finances. We kind of set the vague savings goals and we know directionally what our budget is. But I think when we're very intentional and we go back and we revisit our budget on a regular basis, we know what our 50, you know, 30, 20 rule looks like for us. Being able to really align your finances to your values, to your goals, looking at your finances on a regular basis, I think that is where you really can, you know, gain control of your finances but you position yourself for financial success the rest of your life right. Those are all the habits you need and again, you've got to build it through doing it regularly, looking at your finances, making sure you're you know you're able to achieve your goal, and certainly as things change. So I would just say again, overall, number one tip is be intentional about your finances.

Speaker 2:

That's awesome, and I want to emphasize what you said, too, about aligning your finances to your values and goals, because once you start doing that, it's going to be easier. In my mind, to save is because you're feeling better about it. So, robin, where can people find out more about you in America, saves Week?

Speaker 3:

Sure, absolutely so. To learn about America Saves Week, they can go simply to americasavesweekorg, and then, if you're interested in any of the great tools and resources we have here at Bank of America, you can go to bettermoneyhabitscom.

Speaker 2:

Okay, fantastic, and for everybody watching and listening. As always, there will be links to these websites in the show notes so you can easily check them out. So, Robin, thanks for joining us on the Get Ready Money podcast.

Speaker 3:

Thank you for having me. I've enjoyed my time.

Speaker 2:

Yeah, well, appreciate your time and insights and thank you everyone, as always, for tuning into this episode of the Get Ready Money podcast. If you change something, if you learn something today to change the way you think about money, please be sure to like and subscribe and to tell a friend Until next time, let's change the way we think about money. You.

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Tony Steuer

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