Why do you need to open a savings account now?

Posted on January 12, 2018 | By Manager why you need to open saving account

As much as we believe the phrase “Money doesn’t buy happiness”, we all know that money is probably one of the, if not most, important thing in our lives.

For the first part of our lives, we depend on our parents for everything we need. We are their responsibility till we pass college, after which we are on our own. All alone in the big, cruel world, we finally realize how important money actually is.

The biggest problem most people face is that they are broke. So, if you’re a middle-aged or old person, don’t you think it would have been better if you had saved some money when you were in college?

Or, if you’re someone who still has not graduated college, do you want to go into a life where everything is so uncertain? Don’t you think it would be easier for you if you have some money in your pockets?

Personally, I know how hard it is to start from scratch. And this is why I suggest everyone open a savings account as early as they can. Yes, I mean as early as starting college.

Having a financial backup, even if it’s just a small one, can boost your confidence greatly. It can serve as a cushion for your fall if you, unfortunately, face one.

You might think you will have nothing to save even if you do open a savings account, but there are many reasons which will prove otherwise. Here are a few:

Reasons to open a savings account:

· Helps you learn how to save and become pennywise

When we’re young, we don’t realize how important saving money really is. Since most students have no job or very low income which makes them think they will not be able to save, they don’t even try to.

Opening a savings account requires you to put in an initial amount of money, and you also have to maintain an account balance above a certain amount at all times. Some banks even require regular deposits to keep an account active.

This means, even though you are still surviving, you are actually saving some! Even if the amounts you deposit are small, it will eventually amount to something bigger.

· Emergencies

Emergencies are never predicted, but they are usually around the corner. You might need a big amount of money within a short time, and that’s where a savings account can help.

Let it be because you need to buy a piece of equipment crucial to your education, such as a new laptop, or, because you need to fly home on an urgent basis, a savings account can meet up the lack of fund.

This means you will not have to take a loan, therefore no worrying about paying it back with interest. Your own money will be there to save you.

· Special perks for students

For banks, students are a life-long investment. The earlier they can make you depend on them, the more money they can make with your savings.

Hence, banks provide many extra services to students. A major advantage is that many banks often offer more interest to students, which means for the same amount of money, you will be getting back an amount greater than an older person!

Other services include free of charge debit cards, on-campus ATMs. These are quite useful too as many times urgent withdrawals. You might even get free mugs or keychains!

· Prepares you for the adult life

Even though you might be “technically” an adult in college, you cannot consider yourself as one until you are fending for yourself.

A big part of your “adult” life will be spent dealing with banks, this means you will have to know how to write a check, deposit/withdraw money, keep track of your accounts and what not. Even though these are not rocket science, they might seem complicated if you have no past experience of dealing with banks.

Moreover, you’ll ultimately be opening a savings account, and it should be sooner rather than later. Before you know it, you will be needing money to buy a house or fund your wedding, so the more interest you can save up by then, the better.

Opening a savings account has ZERO demerits, so why not open one as you can!? To manage a savings account, download the MOMBO App, available for both Android and iOS and take advantage of facilities we have availed for you.