How to Start a Savings Account on a Student Budget

Your parents probably taught you from a young age how important it was to have a little money saved for those “just in case” things that are bound to pop up in life. As you got older, this need to have a little money put away became more important as you took on more financial responsibility.

So what happens when you are just enrolling for an online degree program such as the master in taxation through Northeastern University? You know you will be living on a student budget, but at the same time you want to be able to start that all-important savings account. Is it even possible? The good news is that it is possible – it just requires a bit more creativity.

Look for a Student Bank Account

First things first, you need to open a student bank account. These are accounts that don’t make you pay any interest, which means the money you save you get to keep. This factor alone could be a big part of why 53% of UK students have a savings account. This is your perfect opportunity to save without being penalized by interest. Now these aren’t called “savings accounts”; instead, they are just known as a student account.

Create a Budget You Can Stick To

Now that you’ve found an account to save your money in, you need to come up with the money to put in it. A budget is the very best way to do this. Putting all of your expenses and income down on paper helps you to see where your money is going. This makes it possible to tweak things and make adjustments so that you can determine how much money you can afford to save each week/month.

One thing to keep in mind is that your budget needs to be realistic. Sometimes people can get rather carried away with cutting back on items and then find it next to impossible to stick with it. That’s not the point of the budget. A budget is meant to show you where your money is going each month so you can have a better understanding of your finances.

Hide Your Credit Cards

Another way to start saving money is to make sure you are only spending cash. When you charge things to your credit card throughout the month it’s easy to forget just how much you’ve gone through. Suddenly, you can be faced with a pretty large bill at the end of the month, which may cut into your savings. It’s best to only spend what you can in cash and save the credit cards for emergencies only.

There is Room to Save

Even though you are very involved in your online master in taxation program there is no reason you can’t also be saving money. Yes, a student budget is pretty tight, but with proper planning and some restraint on your part, you’ll likely find there is room to save.

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