SMART MOVES FOR STUDENTS

Why saving now matters more than you think!!

Let’s be honest— college can be very expensive at times. However, the earlier you start saving and investing, even if it's just a little at a time, the easier it gets to build serious wealth later. In this post, we’re breaking down why college is actually one of the best times to start saving, and the different accounts that can help you grow your money while you're still in school.

What Bother Saving in College?

Managing tuition, textbooks, living expenses, and possibly a part-time job can make it challenging to prioritize saving. However, beginning to save and invest now—even in small amounts—can provide significant long-term benefits. Due to the power of compound interest, time is one of the most valuable assets when it comes to building wealth. The earlier you begin, the less you will need to contribute later to achieve the same financial goals.

Furthermore, establishing strong financial habits early on simplifies money management in the future, ultimately leading to greater financial stability. Your future self will appreciate the effort you put in today!

Accounts You Should Know About

Let’s talk about a few key accounts that are made for long-term saving and investing — some with major tax benefits.

1. Roth IRA

A Roth IRA (Individual Retirement Account) is actually one of the best tools for young savers.

How it works: You put in money you've already paid taxes on, and it grows tax-free. When you retire, you can take it out without paying any taxes on the growth. That’s a big advantage.

Why it’s great for college students: Most students are in a low tax bracket — so paying taxes now and never again (on that money) is a sweet deal. Plus, you can withdraw your contributions (not the earnings) anytime if you really need to.

2025 contribution limit: $7,000 if you have earned income (such as through a job). You don't need to hit the max — even $50/month is a strong start.

2. High-Yield Savings Account

Why it’s worth it: A high-yield savings account earns more interest than a standard checking account. It’s perfect for short-term savings like an emergency fund or upcoming expenses (like new laptops or perhaps a travel fund).

What to look for: No fees, no minimums, and an interest rate that's way better than 0.01%. (Look for 4%+ these days.)

Why Starting Early is a Game Changer

Let’s say you start putting $100/month into a Roth IRA at age 20 and stop at 30. That’s only 10 years — $12,000 total. If your money grows at 7% per year and you don’t touch it, guess how much you’ll have by the time you’re 65?

Over $135,000.

Now imagine if you keep going past 30. Yeah... we’re talking serious money. The earlier you start, the more compound interest does the work for you. You don’t have to be rich — you just need time and consistency.

Tips to Make Saving Easier

1. Automate It

Set up automatic transfers — out of sight, out of mind. Even $20 a week adds up.

2. Use Found Money

Tax Refund? Birthday money? Save a portion before you spend it.

3. Set a Mini Goal

Want $1000 by the end of the year? Break it down: That’s $20/week. Totally doable.

4. Learn as You Go

Saving and investing isn’t just for finance majors. The more you learn, the more confident you’ll feel about your money.

Conclusion

Saving while you’re in college might not feel like a priority, but trust us — starting now, even with small amounts, gives you a massive head start. Whether it’s through a Roth IRA, a high yields savings account, or just building that habit of putting money away, in the future you will be so glad you started early.

Make your money work while you sleep. Let time do the heavy lifting.