HomeInfo4you5 Savings Mistakes Students Must Avoid in College

5 Savings Mistakes Students Must Avoid in College

Do you often feel broke at the end of the month? Are you saving right or at all? Well, here are 5 savings mistakes to avoid in college so that you can manage your finances better. 

Not Starting to Save Early

It’s always good to start saving early. That can help you finance your needs with your own money. So, you’ll become financially empowered at a very young age and soon need not depend on your parents’ money. To meet this end, consider asking your parents to open a minor savings account for you before you turn 18 years of age. You can use it as your own student savings account once your parents open it in your name. You can use the savings to finance your academic as well as other purchases. 

High Uncontrolled Spending 

Overspending is common among college students. These often include buying premium watches or shows and designer clothes when a less costly brand may offer equally good products. Often the cause of such boundless spending is following the herd. Instead, try to handle money more prudently. Also, build the habit of depositing at least a little amount every month in your student savings account. 

Lack of Monthly Budgeting or Tracking Spends

Set a monthly budget for your needs. If you can save some money after financing your needs, go for fulfilling your wants. How to stick to that budget when you are spending? Carry limited cash in your wallet. Instead, consider using a debit card linked to your student savings account. Less cash may help check your temptations to go beyond your budget. Besides, using a debit card for transactions can help you track them in the passbook of your account. Make sure to keep the passbook updated to know exactly how much your current spends are, and control them if needed. 

Overlooking Cost-Effective Savings Options

Do you think that all good things in life cost more? Well, you’ll be happy to prove yourself wrong. You can open a future savings account with no minimum balance requirement yet you can maximise your earnings up to a high annual interest rate. Plus you can get free general banking services and a debit card. So, opt for such a cost-effective savings option from a reputed bank right away. 

Not Saving while Insuring Health

Did you know you can insure your health while also saving (and growing) money? Such a facility is offered by a health savings account. But what is a health savings account? By opening this account in certain banks, you can claim settlement on both reimbursement and cashless basis. You can get coverage for pre-hospitalisation and post-hospitalisation charges for 30 days and 60 days respectively plus daycare treatment. Moreover, you can get a high interest rate to grow your savings. The account facilitates no pre-policy medical examination. Besides, with a small annual premium, you can even get considerable super top-up health insurance. 

Ensure to not make the above mistakes and save the right way to handle your finances responsibly.