Last Updated on January 16, 2022 by Jonathan Lopez
Why saving money is important for students
Saving money is important for all of us, not just students. If you learn to save money now, you will benefit from it for the rest of your life! Why? Because life will get expensive, you may want to start a family one day, with the bills starting to pile up. And at one point in life you find it very useful to know how to save money, but saving money is not a switch you turn on when you need it, it is something that you have to integrate into your daily life.
Don’t expect that saving money becomes obsolete if you find a good job. Saving money and earning money go hand in hand. It should always be a part of your life because money is always going to be a part of your life.
Saving for rainy days is just a part of your savings plan. Your savings plan should also cover unexpected expenses, retirement and investments.
You may be saving for a new car, for a new home, for your newborn’s college. Whatever the purpose of savings, they are all important. Why? Because money is important. As soon as you understand that money is important, you begin to understand that saving is important.
I am not saying that you have to be obsessed with savings. But you should have a healthy balance between income and savings. You need to know the importance of money and you should be able to resist spending too much.
Many. As a current college student looking to the future and whatever it is about to bring, saving money is one of the most important financial decisions a student can make. Here are some reasons.
1. Time-Value of Money – If saved and invested in IPO and properly, your money can work to pay you back in spades. Every dollar we spend today is likely to be worth 10 times more in the future. The earlier we start saving the better, the opportunity cost of buying Starbucks drinks at savings becomes expensive now when we reach a point that is “comfortable” to start saving.
2. Future Family – If we want to save now we can start a family first or a pet care adda that we like the most. Not only an engagement ring but the cost of rent/living expenses when we start is awesome. It’s one of the reasons I’ve been able to think about this with my girlfriend.
3. Financial Security – It is very important to have cash readily available whenever you need to make a down payment on a (used) car. Also, it is helpful to be able to cover unforeseen expenses that may come up. Insurance is great, but it’s usually some contribution of the individual in the form of a copy.
It is very important to inculcate the habit of saving as a student. Along with pursuing your goals, a savings culture should also be developed. Unfortunately, in our country it is not given due importance and this is the reason why many people face loss early in their career.
You should start limiting all your expenses and start a disciplined habit of saving. Always set aside a certain amount from your income (pocket money) for savings. It shouldn’t be touched unless you really need it. Invest this money in financial instruments like RD etc.
Since you are a student, you may not know much about mutual funds, but still you can learn about it and invest a small amount of Rs 500 through SIP for a long time. Duration. As soon as you start investing, you will automatically be inclined towards educating yourself on money management.
Another reason students save money is to prepare for their future life.
Student life is great, but it doesn’t last forever – some would say unfortunately.
As you grow up and move on to the next chapter of your life, expenses and payments will start coming at you from all directions.
Down payment, car payment, insurance fee, mortgage payment, weddings, day care expenses, 7 day benders (wait, what?!)
Going into debt after school for anything other than a mortgage is, in my eyes, a bad idea.
Once you choose the right savings account for you, automate it, says Sofia Bera, founder of Gen Y Planning. Bera recommends setting up weekly contributions to savings or changing your direct deposit amount so that a portion of each check goes directly to your savings. This gives you one less thing to think about each month and gives you more protection for a rainy day. It also ensures consistency and the more discipline you develop regarding saving, the better the lifelong skills.
New age private universities charge Rs 5 lakh to Rs 11 lakh per year for undergraduate courses. The cost of education will continue to rise in the future.
For instance, a four-year engineering course currently costs around Rs 12 lakh. In the next ten years, the cost is likely to be around Rs 31 lakh and an engineering degree will be Rs 61 lakh.
Also, foreign universities in India are also setting up campuses, which have high fees. It would be wise to target an education fund that is slightly higher than the inflation-adjusted cost when investing.
Raising your children with the understanding to save or spend is the foundation for budgeting in later life. A good budget makes being an adult a lot easier. Understanding the balance of income and expenses helps ensure that bills are paid on time and that holidays are closed. Taking the time to set a weekly pocket money budget may be more valuable to your children in their adult lives than you think.
Take it from me, life happens quickly. It’s been 5 years since I dropped out of university and it still feels like yesterday seven essential purposes for learning.
I’m not saying you need to save every penny you have to prepare for things like car payments and weddings, but having some cash flow available so you can get off the ground once you start adulthood is always a good idea.