The Power of Savings

CALCULATOR

Developing good savings habits early can help you create a financial cushion for emergencies and reach your long-term savings goals like buying a more reliable car or making a down payment for a house. In fact, even putting aside a small amount each month can quickly add up.

Visualize the benefits of saving:

  • Step 1

    Enter an amount you can afford to save each month

  • Step 2

    Type in the estimated interest rate you expect to receive

  • Step 3

    Plug in the number of years you plan to save

  • Step 4

    Then hit Calculate!

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The 10% Rule

Keep in mind that most financial planners recommend setting aside at least 10 percent of your income to create an emergency fund equal to 3-6 months of your 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 1-2 weeks to identify specific expenses you can cut back on.
Get started on a budget for next semester, including a plan for how you might not have to borrow as much for school.