If you are in college, saving money may be a foreign concept to you. Unless you are planning a road trip or have fraternity dues to pay, most cash gets spent not long after you get paid.
However, there are plenty of reasons why you should learn how to become financially literate. In the article below, we’ll show you how stockpiling your cash can lead to a brighter future.
Cash on hand = more fun
During the school year, money will pass through your hands like water. Books, tuition, crazy Friday nights – these are all expenses that can add up in a hurry.
During the summer months, it is important to sock away as much cash as possible if you don’t plan on getting a part-time position on campus.
If you do have a job while at school, be wise with how you allocate your paycheck, as it can mean the difference between being able to afford the sweet custom greek shirts the merch rep at your fraternity is selling and having to pass on them.
Finding an entry-level job is tougher these days
Despite the promises your university recruiter made when you first considered the school you now attend, there are fewer jobs available per applicant compared to a generation ago.
As such, it will take longer to secure employment after graduation. By saving up a bigger reservoir of capital, you’ll be granting yourself a longer runway to find the sweet gig you want to get straight out of school.
You’re going to have to start paying off student debts soon
So, you landed an entry-level position in your field – way to go! Watch your mailbox, though, as your bank/lender will soon be expecting your first payment on your student loan.
There is nothing worse than having your bank balance cleaned out every month – if you start saving regularly in college, though, you will have an emergency fund (three months expenses) that will allow you to sleep sounder at night.
The sooner you start saving for retirement, the better the outcome
Finally, it is never too early to start thinking about when you will be too old and cranky to work.
According to investment experts, people who start saving for their retirement in their 20s have the best chance of achieving their financial goals later in life.
You might not have the best paying job right now, nor will you make much in your first role out of school, but by setting aside even 5% every time you get paid, you’ll be miles ahead of your peers by the time you are 30, 40, and beyond.