Sometimes college life can lead people to be careless with money. This is especially true of students that have gone off to college and no longer live at home. Being on their own leads them to make financial decisions that they soon regret. This can all be avoided, especially if you properly take advantage of your savings account.
Put It Away:
While savings accounts don’t usually receive a large amount of interest, the amount that they do receive could become useful at a later date when you’re in a pinch of some cash. This is a situation that many college students put themselves in. Instead of spending your money frivolously each month, put a little bit into your savings account with each pay check. If you let it sit, instead of instantly spending it, your interest could help you at least a little. If you put at least $30 of each paycheck into your savings account, you will have a nice cushion to fall into if the situation ever arises.
Scholarship money can be tempting to spend, especially when you are not given a specific use for it. Some schools will send you a grant or scholarship without any stipulation, and many students will spend this money on things that they do not need. They in a way become sick with power, having so much money at the tip of their fingers to spend how they wish. Instead of wasting your money on things you don’t need, put it in your savings account. There may be a point in time where you need money fast, and having that money in your savings account, instead of in a flat screen TV in your dorm room, will save you a lot of trouble. Plus once again, interest can really help you, especially if you received a large scholarship.
Some banks offer you a program where you can take the leftover cents from any of your debit card purchases and have it instantly transferred to your savings account. This may seem like it would not be much, but if you take into account the amount of times you have cents leftover from your purchases, it could really help you. Money is very important for college students, because there usually is not much of it, so having your cents put away and saved can help you out later. Ask your bank if they offer this service. It really does add up.
Use a Certificate of Deposit:
If you have money sitting in your savings account, slowly adding up with interest, take it out and put it into a Certificate of Deposit. CD’s can be short term or long term. By putting your money into one, you cannot touch it until a specific date. During that time, especially if it is a longer time, your money will grow. You can reclaim it and put it back in your savings account, or put it back into a CD. This is great for college students because it will help your money to grow, and keep you from frivolously spending it.
Using a savings account can really help keep you out of the hole during college life. If you keep your money in savings, instead of spending it on unnecessary things, you will be delightfully surprised with how much you have when you finally leave college. This will give you a great start at your new life, and leave you feeling satisfied with yourself. Follow these tips, and you can have a great college and a great financial future.