If you’re a young adult, your savings account can help you learn to manage money and build credit. There are too many benefits of having savings accounts for students, including having access to higher education. In this post, you’ll take a look at the top five perks of having a savings account for college students.
Learn Financial Responsibility
Saving accounts for college students are a great way to start learning how to manage their finances. It’s easy to think: “You want money! You want it now!” But that may not be the wisest decision; instead, consider saving some of that money so that you can use it later on when you really need it (i.e., next semester).
Also, if something unexpected happens or there’s an emergency situation on campus or somewhere else off-campus, having funds saved away will ensure that no matter what happens financially speaking—you’ll be able to deal with whatever comes your way without having too much stress about where all those bills are going to come from.
Build Your Credit
If you want to build your credit, a savings account is one of the best ways to do it. Credit cards are not the only way to build credit—you can also apply for a student loan or open a bank account. The key is ensuring you have a good credit score when applying for any form of financial aid, like scholarships and grants.
Save Money
The benefits of saving money are numerous. You can save for school, a car, a house, or even retirement. There are many reasons why you might want to start saving at an early age. SoFi financial advisors have great to offer, like, “Get $10* when you sign up with your .edu email address and add at least $10 to your account.”
One of the biggest benefits is that it helps build up your financial security so that when you need cash in an emergency situation or for some other reason, you have it on hand instead of having to go through stressful measures or go into debt just because you needed money quickly and couldn’t wait until payday.
Learn to Budget
Budgeting is one of the most important skills you’ll need as an adult. By starting to budget now, you’ll build a foundation for future financial success.
You can set a budget using a software program. Tracking your expenses manually gives you more control over the process, but it can be tedious to keep up with every transaction (and there’s no way to automate it). If you’re using software, consider setting up automatic bill reminders so that you don’t forget about any payments.
Access to Higher Education
College may be an expensive endeavor, but it’s important to keep in mind the benefits of saving money for college. With a good credit score and savings account, you can get a loan to pay for school without debt. And if that isn’t enough incentive, consider this: It takes time and effort to learn how to budget your money, even more so if you’re still living with your parents.
The most important thing to remember is that the benefits are endless if you decide to open a savings account. Even if your savings account isn’t as impressive as some other students, it’s important to remember that every dollar saved will go towards your future.