College is the start of many new ventures, from discovering your career to meeting to friends. It’s also where many young adults start becoming financially independent and responsible. That’s why it’s a perfect time for college students to open a student savings account, assuming they don’t already have one. Discover why college students need savings accounts with Varsity.
Set Aside Money for Student Loans
You might not be paying for them now, but as you’re learning and growing, your student loans are likely building as well. Once you graduate from college, most students have a grace period where no payments are necessary, but you’ll want to start paying off those loans as soon as possible, before interest has a chance to build too much.
College savings accounts are ideal for this. If you’re working during your college experience, you should set aside a portion of every paycheck for savings. This way once you graduate, you can already put a significant dent into your loan repayment plan, setting yourself up for long-term success and a less stressful post-college life.
Create an Emergency Fund
From totaling your car to experiencing a natural disaster, you never know when emergencies will strike. An emergency fund—regardless of how much you put into it—serves as a safety net during these difficult experiences. Knowing that you’ve already put aside funds to handle surprise problems can waylay a lot of the stress these situations entail.
More Financial Independence
College, for many students, is one of the largest steps of independence they’ve had away from their parents. You can build upon that newfound independence with a savings account. The added responsibility of tracking and maintaining your own money is an important step of becoming an independent adult. Confidence will eventually stem from that independence, and help you practice responsibility.
Open a Savings Account with Varsity
If you are entering the college scene, or you’re an existing student interested in a change, Varsity’s financial services are designed to make banking easier for students, faculty, and alumni with convenient online and mobile services and products. Whether you want to open your first savings account or transition to an entirely online banking experience, you can rely on Varsity. Open an account with our team today!