Raise your hand if you need help saving money. I’m guessing there are a lot of readers who have their hand in the air. Saving money for retirement or your child’s college education requires a different strategy than saving money for your emergency fund or other short term goals. Fortunately, with the launch of an innovative website in April 2008, saving money for specific short term goals has become easier for consumers who traditionally find it difficult to put money aside for specific goals.

What is SmartyPig?

Co-founded by Mike Ferrari and Jon Gaskell, SmartyPig was created to help consumers reach short term savings goals. The concept is brilliant in its simplicity. Basically you register for an account on SmartyPig, establish a savings goal and time frame in which you would like to achieve your goal and SmartyPig does the rest of the work. For example, if you want to save money for your next family vacation you simply enter how much money you want to save and by what date and SmartyPig will determine how much money you have to put away to reach your goal. You then set up an automated withdrawal from your bank account to fund your new savings account. Once you register your account you can simply set it and forget it.

Where does your money go?

If you are like me, you are probably wondering where exactly your money is being held. Once you authorize automated withdrawals your money is held at West Bank, an FDIC insured bank. SmartyPig works to provide the most competitive interest rates in the country allowing your money to grow while you save for your goal.

What about security?

Now that you know where you money is being held, the next logical question would be concerning security. SmartyPig offers a secure account set-up, account log-in, timed log-off and a powerful state of the art firewall that blocks unauthorized entry. All account information is encrypted and the website is secured with VeriSign Extended Validation SSL. Find more security information on SmartyPig’s security page.

Unique Features.

SmartyPig offers unique features that make saving and accessing your money easier than ever before. Not only are you able to save for your short term goals, but friends and family can offer their support as well. You can make your goal public on social networks like MySpace or Facebook as well as your blog or website and other people can support or even contribute toward your goal if they wish.

Once you reach your savings goal you will have the option of accessing your money via a SmartyPig debit card (accepted wherever MasterCard is accepted). Another option which can increase your savings even more (up to 6.00%) would be receiving your money via a gift card from participating retailers (list of retailers provided on website). Of course you can also simply transfer your money back into your bank account allowing you the freedom to use your money however you please.

SmartyPig certainly appears to offer a unique way to set and achieve short term savings goals that otherwise might get placed on the back burner in a shaky economy. More and more consumers are adopting a new mindset when it comes to spending and saving money which will certainly only add to the popularity of online money management or savings tools.

Recently, conversations have been overheard about how bleak the Christmas season might be in 2009 because of economic and personal finance situations. Here’s a tip, however, that might keep it from being a total ‘bust’ for you and your family.

In the past, Christmas club savings accounts at your local bank were more popular than they are now. However, with the economy in the doldrums and job situations on shaky ground, these accounts just might be worth considering. Think about it: if you can afford to set aside a small amount every week beginning right away, you can have a nice amount in time for Christmas and earn some interest as well. And if you do happen to lose your job, at least you will have something in that account which is better than nothing.

Also, whereas banks were hesitant to handle these kinds of accounts in the past because of their temporary nature, they might not be as selective right now.

Are you a candidate? Traditionally those with lower incomes with good savings habits were good candidates for these accounts. Now, however, middle-income families have become candidates for them, too. Any savings vehicle that you can add to your arsenal only helps you financially – even if it is only temporary. It is not a bad strategy to keep $20.00 in the account instead of raiding it completely in November and December. Then, in January begin to build it up again.

How much? This is going to be an account that contains only between $300 to $500 total by the first of November, so the amount of $10 to $15 per week should be sufficient. Also, keep in mind that you are not trying to build up a massive amount of cash in this account. Other high interest bearing accounts are for that purpose. If nothing else, this keeps your Christmas from being completely without cash for gifts.

Automatic deposit. Use your bank and/or direct deposit payroll to make automatic deposits to this account. That way you never ‘see’ the money in your check and chances are good that you will not miss it.  I highly recommend SmartyPig.com for your holiday account – it will automatically pull the amount you specify from your checking account on the date you select, and you’ll earn a great interest rate while you’re waiting for the holiday season to roll around again.

Be Frugal. If you know that you are going to have less money for Christmas this year then choose other means of giving things that cost less or nothing at all. For example, gift certificates for performing some tasks for someone that they would like and appreciate. Or, even making items like food or inexpensive crafts.

If you use these tips and implement them now the economy might still be in a slump come December, but you will still have a Merry Christmas.