by Amanda McCann, staff writer
With the rise of inflation, it can be harder and harder for college students to put any money aside for retirement. Learning what resources are available for students at the college and in the community is useful knowledge to begin the journey to financial success.
The phrase “living paycheck to paycheck” seems to be more of a reality for most college students. Students endlessly juggle full class loads, while often working full- or part-time jobs to pay bills and rent, while also trying to spend time with family and friends.
The threat of having little to no money when reaching retirement age is real. There is no denying that students have an issue with saving their money when it’s hard enough to stay out of the red each month.
Noea Moss, a financial advisor at Northwestern Mutual, stresses the importance of starting to save as early as possible to maximize the benefits later in life. She says that even just a small amount each month will save you in the long run.
“Although it can be difficult to commit to setting money aside; the payoff of starting today can literally equate later in life to a secure early retirement and even with millions of dollars,” she says.
“It’s hard as a student to save,” says Ryan Stevenson, a recent graduate of the UCCS Finance Program. “We all struggle with going to school full or part time and having to work on top of that. But the sooner you can start, the better!” he says. “You don’t want to wake up at 40 without a dime saved for retirement.”
School oftentimes does not prepare students enough for real-life problems, such as money management and financial preparedness. “If universities offer degrees in finance and only a little bit of that knowledge is applicable to an individual’s finances, then there is a major need to help guide and educate people on where and how they should be saving their money for their future financial goals and dreams,” says Stevenson.
He says this is why he went into educating those who have little to no knowledge on where to begin.
So, where to start?
“Decide how much per month you can save; it does not have to be much to be meaningful,” says Moss. “Begin by creating good basic habits: save 10%. Start with having funds in a high yield savings account; ideally 3-6 months of your living expenses. From there, you can look into investing your money into the stock market.”
PPSC has few resources for students who are looking to start budgeting. One being TRIO, a program that helps low-income students, students with disabilities, and first-generation students navigate college in a stress-free way. They provide resources such as class planning, financial aid services, and most importantly, budgeting help.
Carrie Riffee, a TRIO program specialist, says when she asks students what they wish to see change, most say their money management skills. “I tell my students to create a $1 jar. Every time you have $1 in change or a $1 bill, put it in the jar and you won’t be surprised,” she says. “Usually by the end of the month, it’s over $100 for most students!”
She says they also create an excel sheet together and list the students monthly spending. “At the end of the day, the goal is for them [the students] to be financially independent,” says Riffee. TRIO also offers different workshops, such as how to cook on a budget, that are open to all PPSC students.
What makes this all so important? Why should the student demographic be thinking about retirement and money saving for the future when it seems so far away?
“Learning the importance, committing to a plan, and seeing the return of your labor will have a positive impact on your life,” says Moss. “Having solid financial management skills can lead to improved happiness in life, more control over your own destiny and has been proven to lead to a longer life expectancy.”
Having a plan in place could help in the long run, even though it may seem like a tough thing to do in the current economy we live in.
“The earlier you start, the easier it will be.” says Moss. “The average millionaire has saved and invested for 28 years. So, if you can start saving early in life, not only is it easier to reach your financial goals, but you can also achieve them earlier in life.”
She wants to remind people that there is a difference between being rich and being wealthy.
“Being rich is the money you have that others around you can see; while wealth is the money you have that others cannot see. It is often very tempting to spend our money on ‘riches’ because it feels good in the moment. Unfortunately, those feelings are fleeting and leave you wanting more. Saving and investing money creates wealth which will offer you valuable security and peace of mind.”
