Approximately 26 percent of adults in the country do not have any savings set aside for emergencies. For college students, who are already living on a strict budget, having a savings account is a must. When you have savings, you can get through contingencies, such as accidents, unexpected vehicle repairs, etc. It will prevent the need to rely on payday money or high-interest credit cards. Here are a few reasons why you should have a savings account as a student:
To build wealth
Financial independence starts with just one dollar. So, every dollar that you save is only adding a brick to the house that you are trying to build. If you get into the habit of saving early on in life, then you will be a more responsible and financially independent adult. Moreover, when you park your money in a savings account, you may earn sufficient interest, which will only grow as long as you let it stay in your account.
To save for bigger goals
When you open and manage a savings account, you are forced to organize your finances properly. It also makes it easy for you to plan your future. You might have your student loan to pay for, and if you save well, it will only help you get rid of the loan faster.
To keep your money safe
Stacking your money under your mattress is not the best thing to do to safeguard it. There is a high chance that when you go out to attend classes or run errands, it may disappear. What if you just get paid and lose your wallet the same day? Hence, your money is safe and secure if it is in a savings account.
To have easy access
As a student, you might face many emergencies, which will require you to have convenient access to your limited savings. So, putting all the money into investments is not the best thing to do. If you do that, then you might not have liquid funds when you actually need them. On the other hand, money kept in a savings account is easily accessible. Whenever you need it, you can withdraw it. Do you know what the best part is? To withdraw this money, you do not have to visit your bank’s branch. If you have your debit card with you, then you can withdraw the money from any ATM as and when required. However, there is a limit on the number of times you can withdraw money in a month, after which you are charged a fee.