2015 Challenge Week 4: Discover the Power of Savings

Developing good saving habits early can help you create a financial cushion for emergencies and reach your long-term savings goals, such as buying a more reliable car or making a down payment on a house.

Putting even a small amount aside each month can quickly add up.

To help you visualize the benefits of saving, try out this handy calculator.

Here’s how it works:

  1. Enter an amount you can afford to save each month
  2. Enter the estimated interest rate you expect to receive
  3. Plug in the number of years you plan to save
  4. Hit Calculate!

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Be sure to post a comment about what you’re saving for, what you’ve learned about saving, or your own saving tips for other students right here on $tart with Change to be automatically entered  for a chance to win a $25 gift card.  No purchase necessary. See official rules.

Keep in mind that most financial planners recommend setting aside at least 10 percent of your income to create an emergency fund equal to three to six months of living expenses.  This may be difficult for most college students, but here are some suggestions:

  • Plan to set aside a small amount from each paycheck, even if it’s just $10.
  • Try saving an amount equal to what you usually spend on things that you don’t really need, such as coffee or fast food.
  • Track your expenses for one to two weeks to identify specific expenses you can cut back on.
  • Get started on a budget for next semester.
  • Think about whether you can get by if you borrow less for school.

Start saving now and pave the way to a bright financial future!

See official rules

Challege Week 4: Discover the Power of Savings, StartwithChange.com

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Showing 4 comments
  • AlexisElac18

    I’m saving roughly around $20 a month which may not seem as much but can add up later on. With these savings, I plan to save them for financial emergencies and for helping my family with living expenses. And what I have learned so far from saving money is that its not as easy as it looks to save money. There are plenty of temptations all around you that may draw you to spend your hard earned money,however, with a little effort, saving money can be easy to do.

  • AT Otto

    I am not saving anything right now, as I don’t have any income while in school. Last summer and this summer, when I am working, I will be saving again. I saved this calculator so I can figure out my future savings. My parents taught me that it is important to put money away to save for things in the future. I wish I had saved for a car, because I will need one this summer. So, that is my goal to work towards saving for a car in the summer of 2016.

  • renee wise

    Heres a tip that should be suitable for college students: everything you get a paycheck, create a budget for the period of time from that day until you get another paycheck. Add up all bills and see what you have left. Set aside at least 10-20 bucks in case bills go over with fees or you have an unusually large grocery bill, gas goes up, etc. Then whatever is left, put fifty percent in savings and use the rest for a little fun and maybe one thing you need like a shirt or a pair of shoes. Try to spread out buying the things you need so you aren’t too tight on money. Have a savings account for the money you can spare.

  • hafre

    I’m not able to save yet as I’m finishing up my first year in college and not working but plan to put away money if I can get a summer job. Hopefully that works out and I can contribute to my college expenses this fall.