Heather Allen

In the personal finance realm there are a couple of different “winter” themed debt payoff methods, such as Debt Snowball, or Debt Avalanche, where basically you pay down the lowest balance first and then use that previous payment toward your next lowest debt, and so on and so forth. Snowflake method can also be referred to as a way to pay down debt with any extra money that comes your way.

I want to re-frame the snowflake method as a tool for saving money. It is more of a gentle approach to saving money, rather than paying off debt. The basic idea is that any extra money you might get whether through rebates or birthday money, goes into your savings account. Any savings is better than no savings!

Snowflake saving is the cousin of that jar of coins you collect day to day. Eventually you’ll take them to a bank or Coinstar to get the money. It’s the little bits that add up. For instance, I received a rebate from Ibotta for $20, I put that in my savings account. Or when I received check for $27 earlier this year from my electric company because they overcharged me, I put that in savings rather than my regular checking. Last year, I got some money for my birthday from a family member (yes it still happens), and instead of a “treat yo self” moment, I instead deposited it into my savings.

If your bank charges fees, for any of these deposits or transfers into savings then I would advise you to avoid fees at all costs (and maybe consider another bank?). This money will make regular contributions to savings grow even faster, but if you don’t have that luxury, don’t stress. That is the idea of this snowflake method of saving, you are putting in a little bit of money at a time for your future self.  And the savings goal might differ from person to person, for instance, the money could go into a rainy day savings account or even for travel, pet care, or an emergency fun. However you save, it will make a difference later on.