College Savings – It’s Possible!

Most people leave college in debt, specifically from student loans. However, what if you could graduate college with some money set aside to pay off that debt and start your new adventure called adult life? If you save up during college, it’s most definitely possible. Even moderate college savings can have an impact if you give them enough time to grow. Investing just $100 a month for 18 years will yield $48,000, assuming an 8% average annual return. Sounds good, right? Don’t know where to start? Here are a few steps to get you on your way.

children_and_moneyFirst and foremost, you need to make sure you are tracking your spending. Write down all your spending including what you bought, how much it cost and why you bought it. Think hard about your spending habits. Be sure to include your living expenses such as rent, utilities, bills, cable, etc. It may be helpful to arrange them by categories if you’d like. That way you can see exactly where the majority of your money is going.

On a separate sheet of paper, write down all your income including: scholarships, work, allowance from parents, etc. Remember, credit cards do not count as income; rather they should be saved for emergencies only.

Now it’s time to figure out where you can save. Even if you can afford your extra non-essential expenses, think about cutting back. Consider how much money you have left in your budget that you can put in your saving.

It is always a good idea to define your purpose for saving and identify your goal, whether it’s buying a house, planning for expanding your family or simply becoming financial independent. Having a goal in mind will help you stray away from temptations that may arise in the future.

Once you’ve decided on how much you’ll save, act on it. As soon as you get your income, set your savings aside in a savings account. Taking it one step further, set up an automatic deposit from your checking account to your savings account. Even if you can only afford to deposit $10 per week, it will still add up to $480 at the end of the year.

Furthermore, use cash when making purchases, so that you are less likely to overspend. Then when you receive change back, don’t spend it. Instead, put it in a jar and when it gets full, take it to the bank and put it into your savings. You might not think this will add up, but you could be saving several dollars a day just in coins.

With the right planning, it is possible to save during college! William Wolske, CPA wants to be sure you are making good money decisions. Schedule your free consultation today to receive assistance when it comes to handling your finances and money saving goals. Contact our offices at 843.706.9644 or visit We’ll go through your financial situation together, so you can be confident with your choices!