Why Every Student Should Have a Savings Account

Written by  //  2022/04/20  //  Student Budgeting  //  Comments Off on Why Every Student Should Have a Savings Account

Why Every Student Should Have a Savings Account

For many students, college is their first time living somewhat independently. This is the time that young adults learn how to manage their time, prioritize responsibilities, and be contributing members of society. College is also the time when many start thinking about their personal finances.

Learning financial literacy can be challenging if you’ve never handled your own money. However, getting started early will help you build a solid foundation so that you’re ready for the world upon graduation. If you’re on the fence about taking steps to secure your financial future, learn why every student should have a savings account.

Increases Independence

Building a savings account increases your independence, especially as a young adult. While many college students have part-time jobs, not all are able to balance their heavy workloads and maintain full-time employment. Setting some money aside into a savings account can supplement your part-time wages when you need them.

Students with savings accounts don’t have to rely on their parents or outside sources to fund their lives. With your extra money, you can make personal purchases, go on adventures, and live comfortably with the money you’ve worked hard to earn.

Access to Emergency Funds

Emergencies can happen at any time, at any place, to anyone. Students without any savings might not have access to as many resources to help in these situations. However, those who do have some extra money have a little more wiggle room to make things work.

If you stay on campus, you might not have immediate access to your support system, especially if you go to school out of state. Having a savings account gives you access to emergency funds when times get tough, so you can always get yourself out of sticky situations.

Builds Healthy Habits

Many adults have a poor relationship with money. Sometimes, this stems from the fact that they did not build healthy financial habits when they were young. Students who maintain a steady amount of savings can avoid having issues with money in the future.

Financial responsibility puts more money in your pocket, but it also sets you up for future success. You won’t need to struggle down the line if you take the time to build healthy habits right now. Every student should have a savings account to create stepping-stones that will launch them into their adult lives with security.

Cover College Costs

It’s no secret that college can get pricey. Even if you have financial aid, there are still expenses you’ll need to cover by yourself. School supplies, gas money, clothing—there are so many things that people don’t even think about when considering college expenses. With a student savings account, you can help cover these costs and improve your quality of life.

If your dream is to attend a prestigious university like Yale or Dartmouth, having a savings account can help you pay for an Ivy League college. Your extra money will also help fund essential college experiences, so you’ll never suffer from “fear of missing out.”

Building a savings account as a student is one of the best ways to set yourself up for success. Don’t wait until postgrad to start thinking about your future; taking the steps now will start you off on the right foot.

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