CNBC: Quick tips to help college students start saving money
CNBC, March 19, 2021 — In today’s article by Amanda Mier, she writes:
I’m a senior at UC Berkeley and I decided before I graduate, I’m going to get my money game together. I set up a budget, figured out where I could cut expenses, and the next step — start saving money.
If you’re anything like me, you live out of your checking account and try to budget for needs, wants, and paying off debt. But saving is the first major step to ensure financial security. And the earlier you start, the more your savings count. As someone without a savings account (or a plan!), I went to the experts to find out why you should start saving as a college student, how to get started, and the best way to make your money count.
For insight, she turned to Marguerita Cheng, CFP®, who said: Just start Saving.
Rita explains:
- If you do have a source of income, it’s OK to start small. Starting is the most important step. If you can’t save $100 a month, but you can swing $25 – do it.
- Save as much as is reasonable for you depending on your income and expenses.
- Don’t focus on the amount, focus on the habit.
“When you have a little more wiggle room with your income, make an appointment with yourself to check in, reassess, and up your savings — maybe it’s only $5 more, or maybe it’s $20, $50, or $100,” explains Rita. “Whatever it is – it’s savings. And it’s growing with compound interest. If you’re on top of your budget and not overspending, Steinberg recommends college students keep around one to two months’ worth of their income in checking and put everything else in high yield savings account or a retirement fund.”