Saving is a healthy habit and should be inculcated at a young age. It is advisable that youngsters start saving while in college so that they get an understanding of saving and managing their funds before they embark upon their professional lives and prospective careers. Saving effectively begins by developing a comprehensive budget as it helps to get a fair idea of how much one can afford to spend every month and the areas where expenditures can be curtailed. But only making a budget is not enough, complete adherence to it can help in saving money.
How To Start Saving Money While In College
- Students should not shy away from utilizing the discounts offered to them by a number of outlets and companies. Every penny that you save, counts and adds to the larger pool.
- Taking up a holiday job or part time job can have two advantages. First it can help augment student savings, second is that it could be incorporated in the resume as work experience.
- The other part of the savings strategy is to curb expenditures. Youngsters should conduct themselves maturely and refrain from impulse buying. It may sound tough to practice but it can prevent spending on products that are just a waste and totally worthless. Think before making any purchase decision. A major percentage of money is spent by students on eating out, instead they should try and eat healthy home cooked meals and save a fortune.
- Every consumer has the right to a fair deal and bargaining as much as possible. It may help you win good deals. Even while shopping, it’s recommended to shop at clearance sales and other value bargains. For example, instead of buying new books, second hand books can be rented at much lesser cost.
- Avoid spending on entertainment over- indulgently. With the wave of credit cards, students tend to spend much more and become irresponsible towards their finances. Credit shall be treated as the last option, and students should try and manage their expenses within their available pool. Unrestricted use of credit cards can totally ruin the potential of saving and investing, leaving you in the dark in the future.
- Many experts believe the investing in shares can be a good option for students, as it is a long term decision and money can be withdrawn when the need arises, say after college to pursue further studies. Mutual funds can also be a decent option, as it would bring the expertise of a professional to your investment schedule, keeping a constant eye on the fluctuating markets.
- Coming to banking, it’ s very important to choose a bank account according to your needs. Though there can be many types of fancy bank account types, the simplest is always the best. Students should choose a simple savings account to start with and save their funds in it and also monitor it on a regular basis. It’s also very important to short-list a bank on the basis of its geographical reach, as students may move across states and even countries to pursue education.