You’ve probably heard it before – saving your money is important. But as a student, it can be hard to save money when you don’t have a lot of money. Just like budgeting, saving money is a habit you build over time by being conscious of your spending. Start by having a small savings goal to start your savings account – maybe that’s $50. Then grow it to $100, then $500, working bit by bit to add to your savings and not withdraw from it. Motivate yourself by identifying something you are saving money for – maybe it’s a car, or an emergency fund for peace of mind. Use our Savings Worksheet to track your savings and have a visual representation of working towards your savings goal.
As your savings grow, it is recommended to divide your savings into three separate accounts: an emergency fund, an intermediate fund, and a retirement fund. The emergency fund is for when you need money for an emergency situation, such as car repairs, a doctor’s visit, or loss of income. A goal to work towards would be to have three months' worth of living expenses saved up in your emergency fund. An intermediate fund is money saved for large future expenses, such as a home or a car. Think of using money in this savings account for three to ten years in the future. A retirement account is for your retirement and should be started as early as possible in order to reduce your stress later in life. Small steps add up, and saving even a little bit today will pay off later in life.
