There is no question about it: It is never too early to start saving. Sadly, this is a message that many of our youth miss, but fortunately, many students have become financially wise to the idea that they can boost their income and overall financial health if they start saving now.
As such, here are some of the best techniques when it comes to saving up.
When it comes to saving up money, there are a few golden rules. First, saving is treated as an afterthought for too many, something that happens only after spending for the month. The truth is that this should be reversed:
Save first, then spend the remainder. This is the only way you can adequately prepare yourself for the future.
When it comes to saving, you should compare interest rates and select the highest interest rate possible. Interest rates are low right now, but that doesn’t mean that you can afford to ignore the very real impact that interest rates will have on your future financial success.
Select the bank with the highest interest rate possible. As a student, you may not have the credit rating to open an unsecured bank account, but fortunately, many banks have programs that are specifically geared for students.
Furthermore, keep an eye on these student savings accounts. Yes, many will offer fantastic introductory rates, a competitive interest rate, and more. However, there are other things you may need as a student. Will they provide financial literacy classes?
What are their overdraft fees if you accidentally overdraw your account – are they willing to wave a certain amount of fees? What sort of fees does the account charge in general? What sort of access do you have to your money, including ATMs and ATM fees?
Keep in mind that some accounts also come with bonuses that you get for enrolling with them, including discounted purchase programs or access to lower-cost financial services, such as investment advice or credit monitoring.
Make sure you fully understand these bonuses before signing up for any program.
It may be better for you to check out an ordinary savings account or a money market account in some cases. Don’t be afraid to look into one of these accounts just because you are a student. If you are a legal adult, you can and should check out all of your financial options.
Next, make sure to watch your expenses as best you can. Being young doesn’t mean you are flush with cash, and you should strive to save money wherever you can.
Watch your expenses, always compare shops, and don’t waste money on frivolous services. For example, if you need to send money to someone else, make sure you are using the most affordable services.
When it comes to your finances, start managing them proactively at a young age. This will give you a leg up on your peers and ensure that you are well on your way to a positive financial future.