We make so many large purchases throughout the course of a lifetime, as we learn to live independently and make a life for ourselves and our eventual families. And, of course, each of these purchases is highly personal, and as unique as the human beings making them. But there are some milestone purchases that are almost universal, and saving to buy them can be a source of both stress and pride.
Helping young adults or young couples set aside money through funds matching, starter donations or simple encouragement can make a huge difference, instilling confidence, easing stress and creating a highly appreciated support system.
Regardless of the item being purchased, there are many ways to set up a savings goal to buy something large. Savers can create their own milestones and simply ask for advice and encouragement from friends and family members, posting updates and sharing when they've reached small, mid-savings goals. Or friends and family can offer to match a certain amount or percentage once the proposed total has been reached.
Your final savings goal can be equal to the total purchase price of the item, but we recommend setting more manageable totals. Aim to save the down payment or a certain percentage of the price. Once that goal has been met, reassess the situation and set a new savings goal.
Some large Life Stages System purchases that fit this profile include:
First Car: Recommended savings goal: $3,000-$5,000 for a down payment
First Year of College: Recommended savings goal: $20,000
First Home: Recommended initial savings goal: $3,500 or 3.5% to go toward a down payment (based on $100K)