How to Start a Savings Plan with a Tribal Per Capita Distribution

Per capita distributions can be a significant source of income for Native American families. While it can be tempting to use these funds for immediate needs or wants, creating a savings plan can unlock a world of possibilities for your future. Here's a step-by-step guide to help with mediating your budgeting and spending:

1. Set Clear Financial Goals

Dream Big: What are your aspirations for yourself, your family, and your community? Do you want to buy a home, start a business, pursue higher education, or invest in cultural preservation?

Define Your Goals: Write down your short-term and long-term goals. Be specific about what you want to achieve and when.

Prioritize Your Goals: Determine which goals are most important to you and focus your savings efforts accordingly.

2. Create a Budget

Track Your Income and Expenses: Use a budgeting app, spreadsheet, or notebook to monitor your spending and identify areas where you can save.

Allocate for Savings: Include a specific line item in your budget for savings, and treat it as a non-negotiable expense.

Automate Savings: Set up automatic transfers from your checking account to your savings account each time you receive a per capita distribution.

3. Choose the Right Savings Account

High-Yield Savings Account: Look for a savings account with a competitive interest rate to maximize your earnings.

Individual Development Account (IDA): Consider an IDA, which may offer matching funds or other incentives to help you reach your savings goals faster.

529 Plan: If your goal is to save for education, a 529 plan offers tax advantages and can be used for a variety of educational expenses.

4. Make Saving a Habit

Start Small: Even small amounts saved regularly can add up over time. Don't be discouraged if you can't save a large portion of your distribution at first.

Celebrate Milestones: Acknowledge and celebrate your progress as you reach your savings milestones. This can help you stay motivated and committed to your plan.

Review and Adjust: Periodically review your savings plan and adjust it as needed to reflect your changing goals and circumstances.

5. Empower Yourself and Your Community

Financial Education: Seek out resources and workshops to enhance your financial literacy and learn more about saving and investing.

Share Your Knowledge: Encourage others in your community to start saving and share your experiences and successes.

Invest in Your Future: Remember that saving is an investment in your future and the future of your community.