We often hear youngsters ask, “Why is saving money important for students?” Well, as a student, it is best to consider saving as a responsibility. We must have heard of people talking about saving only when they start earning. But you needn’t wait for this. What makes the new generation different from the old is that they think out of the box. This includes the way they view money.
So, instead of waiting until you join the workforce, you can easily start investing your monthly pocket money, monetary gifts from relatives on festivals and special occasions, or rewards earned from competitions in risk-free instruments.
One should never underestimate savings, as even a tiny amount can make a huge difference. Remember the never-ending catchphrase of our parents ‘to save’? It's worth keeping in mind! Getting used to saving from an early age is a huge advantage.
Here are a few ways through which a student can invest:
- Invest in Low-risk Financial Products: Financial avenues like insurance will help you to save money with the benefit of low risk. One of the most trusted and low-risk financial product for student investments is - Guaranteed Savings Plans. These are most opted plans due to their tremendous benefits. These insurance plans come with benefits such as covering risks, providing guaranteed returns, safety, tax benefits, and much more!
- Gift Yourself a Piggy Bank: Keep all your coins saved in a piggy bank. This may be a small step to promote the habit of saving but will help you organise your loose change.
- Invest in ULIPs: Unit Linked Insurance Plans is a multifaceted product that offers dual benefits of both insurance cover and investment in equities or bonds. ULIPs provide better returns. As a budding investor, it is one of the best ways to start investing.
- Invest in Crowdfunding: It simply means funding for some project or venture. Investors pool money by funding such projects. It is an intelligent and educational way to start investing small amounts.
There are many financial products that a student can opt to invest their savings in. The cherry on the cake is that these are low-risk investments. Future Generali India Life Insurance provides various insurance products that are the best way to begin your journey investing and directs you to those products that offer less risk and high liquidity.
Since we know why saving money is important for students, we should dig into how students can start to save at a young age.
Develop a few habits that can help you save without putting a leash on your essential spendings, such as:
- Build a Budget: This may sound boring, but it has enormous benefits. A budget is all about forecasting your expenses and pinning them down to eliminate the expenses that are not required.
- Don’t Wait Until You Get a Job to Start Saving: A student with limited pocket money can quickly start saving. Save all the money you get from your family during festivals. Try to convince your parents to increase your pocket money. Also, try to do some part-time/work-from-home internships.
- Inculcate Financial Discipline: Put a leash on all the habits that become barriers to saving efficiently. Try not to overspend, but rather save that money. You can take your parents' help, put your savings in a Guaranteed Savings Plan, and watch it grow.
- Set a Monthly Saving Target: It is not possible to save all at once. Hence, take baby steps by hitting a monthly target to save. At the end of the year, you can invest the amount in a savings plan.
These are a few options available to invest smartly. Since you now know why saving money is important for students, you understand that every penny is important. Visit Future Generali Life Insurance and make the most of your savings. To know more, connect with your financial advisor today!