SAVE MONEY
"Stretch your dollars one cent at a time. Or, more like one quarter at a time!"
Benjamin Franklin said “a penny saved is a penny earned.” Since he wrote that in the 1700's, the value of a penny has changed due to taxes and inflation. It actually takes earning a bit more before 1 true cent is saved, depending upon one's tax bracket of course. But the intent of it still rings true.
Surveys taken before the financial recession reported that less than 7 percent of the US adult population actually had any savings at all. Many now realize that building financial wealth and long-term security depends upon saving money and reducing or eliminating debt.
Why should I, a college student, save money? There's so little of it.
Everyone, even college students, experience difficult situations in their lives and all of us need and want things. Here are a few reasons why....
- Living expense money awarded by Financial Aid and intended to be used for the entire semester. UTSA students receiving financial aid living expenses at the beginning of the semester often run out by mid-term.
- Gas money for the next trip home (even if you carpool and share the costs) or airfare or bus trip
- Equipment money for a laptop or other pricey items needed for classes
- Money for an emergency trip to the doctor
- Money for a holiday or spring break trip
Can you relate to these students in this 
video?
The BIG 4 reasons anyone should save:
1)Emergencies - that proverbial "rainy day" when the job is lost, the house AC doesn't cool any more in the 100 degree heat, or the car's repairs cost more than the car is worth.
??$ Experts advise an amount = 3 months' income
A college student may want to set aside an amount = 5% of his/her income after tuition, fees, and books are paid. (Income can be living expense money from financial aid, as well as jobs.)
2)Financial goals- short term and long term ones ranging from a new laptop to a new house
??$ Experts advise an amount equal to 10% of gross monthly income
A college student would have shorter term financial goals - you can look one semester ahead and figure out how much to save during the current semester. Use the Student Expense Estimator.
3) Retirement - a long-term financial goal on your worksheet.
??$ Experts advise an amount = 70% of one's pre-retirement earnings to comfortably maintain one's standard of living during retirement.
Most college students can't even begin to think of this because it's so far in the future! But honestly, you can accumulate a lot of money through compound interest. Even as little as $20 a month x 40 years at 5% interest average can get you $20,962. (Use a financial calculator to play with this.)
4) Special things - vacations, charity gifts, trip home, etc. - put these on your financial goals worksheet, too! There's no recommended amount because these vary by personal style and choice. Do identify how much the special thing will cost so you will better able to determine how much to save.
??$ A college student's list may include items like an iPod, laptop computer, spring break trip, or vacation.
Tools and strategies to help you get started.
Get motivated to start saving now
The hardest thing about saving is getting started. It takes doing one thing consistently for 21 days to establish a habit.
Join America Saves, an organization devoted to helping you with savings strategies and keeping you motivated. Get their e-newsletter free.
You can get daily inspiration about savings through Inspired Savings. Sign up for the free daily motivational email or join group on Facebook.
I remember a saying from long ago, "A saver not a borrower be."
I will be a saver starting today! |
The University of Texas at San Antonio
