As a high school or college student, one tends to save a lot, yet ends up facing a cash crunch at times. To make things simpler, you need to have a savings account that lets you manage your finances better and gives you access to freebies at a minimal cost. As part of the benefits of savings accounts for students, you get to manage your funds such that you can maintain liquidity, avoid unnecessary debt, and maximize your savings. Here are some key takeaways for a student with respect to savings accounts.
Saving and interest
The interest accrued in your savings account may not be a big one, yet it can be set aside for long term financial needs. Ideally, focus well on how to save the interest amount and the interest that has accrued on earlier savings.
Looking for the right account
This step will let you compare prices and find the best-suited account. Ideally, you should choose an account with no monthly fees and one that provides benefits. Also, this is where as a student, you get a fair understanding of which bank offers the best interest amount. Essentially you get to compound your money over a period of time by saving the earnings. You must have access to a mobile set up to help you transfer your money from checking account to savings account.
Monthly contribution
This is definitely a good practice to save. You can make small contributions to your savings account, as little as $10 per month. You either deposit directly or transfer from your checking account to the savings account. As a simple practice, you can set up an automatic transfer from your checking account every month.
Keep simple goals and manage finances
This is where you need to zero down on a budget that will help you save more by keeping unwanted expenditures away. Keep your goals compatible with your basic needs and requirements and try to avoid extra expenditures. This will definitely help you save more in your savings account.
Have a budget
This must be a part and parcel of your everyday students life wherein you calculate your total amount including loans, wages from part-time work, and total course fees. All you need is to do is to get a total estimate of other expenses such as food, rent, utility, ongoing costs, and other needs. You must save the excess amount in your savings account and a good $10 per month is worth it.
Keep short term goals
Your savings account can be a great way to meet short term goals such as a large purchase or going for a vacation. Insured by FDIC can be a great way to save your capital and so you can use the money to finance small needs.
Learn to save money
Having a savings account lets you understand the different dimensions of saving and spending right. Keep a track of your expenses and analyze them to look for faults and gaps where you can fit some extra savings. Keep a savings goal in hand for a specific period, say a minimum of one year to a maximum of three years.
