Challenge Week 1: Discover the Power of Savings



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

To help you visualize the benefits of savings, try out this nifty calculator. Simply:

1.Enter an amount you can afford to save each month

2. Type in the estimated interest rate you expect to receive

3. Plug in the number of years you plan to save

4. Then just hit Calculate!

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Post a comment about what you discovered or share your own savings tips with other students right here on One For Your Money and get entered  for a chance to win a $25 iTunes card*.

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 of 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.

 

So start saving now and pave the way to a bright financial future!


*Details and official rules here






Posted on April 1, 2012 at 12:01 am 18 comments

Categories: Challenge 2012, Promos & Contests, Saving

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18 comments

  1. 1981Mccormick Says:
    April 2, 2012 at 5:26 pm

    I can’t believe on how much money I can save by putting $350 dollars aside each month and only at 1% interest rate for 5 years, I could save $21,525. Thios would be great even if I was getting a higher interst rate, I am going to work towards this because with this kind of money that can go for a well deserved vacation for the family or basically money being put away fr a rainy day, vehicle break downs. What I have learned is I can spend less on certain things I actually don’t need and save that money each month that I would spend on unnecessary items and put it away and make more. It would even be enough to put a down payment on a new house that my husband and I want to do in 5 years or so. I am starting this with my next paycheck; $175 every two weeks faithfully and I will have great rewards in the end. Try it, you may be amazed like I was. You don’t have to put a smuch as I am going tp away start out with $50-$100 a month and then go from there. This was a real eye opener and kind of a motivation starter for my family and I. :)

  2. joeyeddins Says:
    April 2, 2012 at 5:41 pm

    I found out that I am not able to save a lot every month at this point in my life, however, even a little bit adds up over time and would be a great way to put some money back for those emergencys that occur in all of our lives.

  3. Jessica Says:
    April 2, 2012 at 5:42 pm

    Even the smallest amount of money saved each month can lead to big bucks at the end. I’m actually having to re-budget my money and savings at the moment; I didn’t realize how much I could save a little more now to splurge a little more later. (if that makes sense)

    Definitely going to do my best to keep up with my newest budget! =)

  4. docplove Says:
    April 2, 2012 at 5:51 pm

    I would say that many college students do not have a job, but it is still possible to save money. I would recommend you start by saving the change you collect each month. Small change can add up. If you save $0.25 a day for a week, you have $1.75 a week, $7 a month, $35 in 5 months (Semester). That’s just a start. Collect the change you have lying around in the couch or car seats and watch it add up. It takes little effort :)

  5. April Vessell Says:
    April 2, 2012 at 6:03 pm

    If I saved $125 from each paycheck, which equals about $250 per month, until my son graduates in 16 years at only 1.5% interest, I could easily use the over $54,000 to pay for his college! I know now that if I did this easy saving, he will never have to struggle to pay for school like I am now!

  6. lyon18 Says:
    April 2, 2012 at 7:38 pm

    It is nice to see how much I can save even if I am only able to save $100 a month. I think the easiest way to save is to an account set up for savings only. Then have a specific amount directly deposited into that account on a regular basis. I have learned that if I did this before I seen my paycheck I did not realize it was missing and learned to live without it.

  7. ashleye1023 Says:
    April 2, 2012 at 7:57 pm

    This is so cool! I’m a poor college student, but realizing that I can take a little bit of what I earn and save it, I could make so much! And that could go towards paying my loans :D So exciting! You just have to know how to manage money (:

  8. cbran Says:
    April 2, 2012 at 8:07 pm

    Wow, I cannot believe that if we save $50 dollars out of each pay check which is $200 a month in 1 year alone we would have over $2,000 dollars. If we start saving that much every pay check our 1 year old son can go to college with no worries. This really opens my eyes to what we can really accomplish.

  9. lilwonda77 Says:
    April 2, 2012 at 9:45 pm

    I discovered that if I saved 150 each month that in two years I will save more than $3600 (at a 2% interest rate) Infact this experience makes me wonder how much my actual percentage rate is… which leads me to another challenge. At this rate in 5 years I will be able to save almost $10,000.00!!! WOW.

    Oh Wow… so I just called customer services to find out about my interest rate, and long behold…there isn’t one. Higher One doesn’t even provide interest rate..which makes me upset! What’s the point of this challenge if it doesn’t even apply to us? :(

  10. amw6987 Says:
    April 2, 2012 at 10:25 pm

    After seeing how much I can save by just putting $25 dollars into my savings, I am going to start with my next paycheck. I figured that since I treat my family once a month, I can put that money into my savings and let it build up.

  11. heatheramon1 Says:
    April 3, 2012 at 10:17 am

    I wish as a college student I had more money to save. Hopefully after I am done I will be able to save more.

  12. Amanda Says:
    April 3, 2012 at 10:37 pm

    This is crazy how much you can save just by putting a little of your pay check into savings.

  13. pammyru Says:
    April 5, 2012 at 12:23 pm

    I really wish more people knew about this!!! People would be amazed at what they spend on things they really don’t need. They can have a nice nest egg!

  14. GiGi Says:
    April 5, 2012 at 4:35 pm

    simply saving 10.00 per pay period (most of us blow that in an hour) will net you over 2000. in 10 years, doesn’t seem like much until you need it, and it’s a step in the right direction.

  15. Marcella Reynolds Says:
    April 5, 2012 at 4:46 pm

    I save money this way. If I give a check for $5.20, I put it in the check book as $6.00 and keep every thing even. If it is $5.92 I round it off the the nearest dollar and I never bother it. After a while you have quite a bit of cash in the bank. I do the same thing when I use my debit card Easy to keep up with also.I always round it the the highest dollar. I never bother it for about 2 years and I had $500.00 I didn’t realize I had until I checked with my banker. Also if you overdraw you are covered.

  16. nuocxanh Says:
    April 5, 2012 at 10:11 pm

    If I save 300 $ each month at 1% interest rate in 5 years, I would have 18,450 $. After 5 years in college ,I have some money to spend. That’s cool but I don’t think I can save 300 $ each month in 5 years @@

  17. Corinne Says:
    April 7, 2012 at 10:03 am

    Just saving $250 per month at 1% interest , I would have $31,537. Roth IRA is a good idea!
    You must be careful with food cost. Some coffees are very expensive.Lunch box is a excellent idea, so you can put money aside for your future. You just need to be smart and manage your money. It will pay for your future.

  18. velveeta98 Says:
    April 17, 2012 at 12:26 pm

    i learned it doesn’t take much to save and earn big

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