Summertime is right around the corner, which means it is time to start preparing for vacations and summer fun.

Pamela Cotton, the VP of member services at Austin Telco Federal Credit Union, joined Studio 512 Host Rosie Newberry to share some tips and tricks on saving this summer.

What are some ways to balance summer fun while still being mindful of your finances?

Start with creating a summer budget and setting a spending limit before summer begins. The best way is to make a list of upcoming expenses and events you would like to attend and separate them into categories. Categorizing activities will help you keep track of how much you’re spending and also help you stay aware of when you’re getting close to your spending limit.”

Are there any simple ways to separate funds for different activities?

“You can start by opening designated deposit accounts for each category to help you keep track of your limit. Here at Austin Telco, we offer money market accounts with higher dividend-earning potential. If you separate your vacation funds into money market accounts, instead of leaving them in your checking account, you could earn a lot more dividends on your money.”

We don’t hear about money market accounts too often. What exactly is a money market account?

“A money market account is a type of savings account that typically offers higher dividend rates than a traditional savings account. They are flexible liquid accounts that can help you save by earning more dividends on your deposits and allow you the flexibility to withdraw funds when needed because you are not locked in a term. Money market accounts are perfect for saving for things like a dream vacation, emergency funds, or your kid’s college tuition.”

Speaking of dream vacations, what advice do you have for someone who is planning on taking their dream vacation this summer?

“It’s important to start planning early and setting realistic goals for yourself. Start by opening an account that will allow you to gain dividends on your money. You can also consider ways to make extra income to help fund your vacation, like a part-time job or selling items you no longer need, and deposit those funds into a high-yield account. Also, be flexible. Vacations don’t have to happen in the summer. Consider traveling during off-peak seasons when the prices are much lower.”

Learn more about money market accounts and new ways to save this summer at

This segment is paid for by Austin Telco Federal Credit Union and is intended as an advertisement. Opinions expressed by the guest(s) on this program are solely those of the guest(s) and are not endorsed by this television station.