Money makes the world go round. Whether we have a little or a lot, everyone needs it to live. Right now, as a young student, you most likely see money as an enabler of fun! Having the money to go out with your friends, buy the things you want, go to an event or on holiday. But as you get older, money will play a more important role in your life and shape how you live it.
A valuable life lesson
One of the greatest lessons you can learn now is the freedom that good money habits can bring. The most basic, but probably the most important money habit, is saving. While it’s a tricky one to master, once you do, the benefits and associated freedom it will bring, will be life-long. Here are just a few benefits to consider that will set you up for life!
Get a savings head start: The great thing about getting into the habit of saving when you’re young, is that you’ve time on your side. The sooner you start, the more you’ll save and the greater financial freedom you’ll have. Even if you can’t save every month, you’re still going to be better off than those who never started. It’s a no brainer.
If, for example, you were to start saving at the age of 15, versus someone who was to start saving at age 20 or later, you’ve already had a 5 year head start and more money in the bank after 10 years.
| Started saving | Amount Saved Per Year | Amount Saved by Age 25 |
|---|---|---|
| Age 15 | €120 per year (€10 per month) | €1,200 (10 years saving) |
| Age 20 | €120 per year (€10 per month) | €600 (5 years saving) |
Remember, slow and steady wins the race.
A buffer for the unexpected: When you have a savings buffer, you can be confident that any unexpected opportunities that crop up can be met, which means that you may never have to miss out on the things you love doing or having or the places you want to go to! It’s the perfect FOMO antidote. Plus, there’s great peace of mind knowing you have savings to dip in to if needed.
Empower yourself. Manage debt: When you can rely on your savings to pay your way, you become your own Money Boss and never have to rely on anyone else to borrow from or pay back. That is super empowering. Sure, there will be bigger life debt that is unavoidable when you’re older like mortgages etc., and it’s ok to get a loan if it suits your needs and is affordable. But appreciating the value in being able to be self sufficient when it comes to your money for your smaller everyday costs, is such an important money principle to live by.
Freedom of choice: As a young student, you’re at a really exciting point in your young life. The world truly is your oyster and no doubt you have hopes and dreams for your future. Being a smart saver can help you realise your ambitions. When you’re good with money and good at saving money, you may end up having more of it which may open more doors of opportunities and get you to where you want to be.
Positive mental wellbeing: Being a confident and dedicated saver makes you more confident generally when it comes to money. As your money knowledge and skills improve, the anxiety that can often be associated with money reduces. So, not only are you improving your Financial Wellbeing, you’re improving your overall mental wellbeing too. Knowing more about how all of this money stuff works now, could be the best mental wellbeing gift you can give your future self.
Positive credit score: Being able to show a history of being a responsible saver will stand to you when it comes to accessing credit in the future. It’s a habit that pays dividends in so many ways, including having financial institutions view you in a more favourable light.
A brighter future: Take control. Even if you can only start to save a little now, think about the power a savings habit can bring and lay the foundations for a brighter future for yourself. A Money Smart one!
