RU Money-Smart? Summer Savings

It’s almost here! The end of the term! Time to relax, right? Well, sort of.

Chances are you’ve got a summer job lined up for shortly after the end of the term. If you don’t yet have a summer job, don’t wait too long. One thing that’s great about summer jobs is that while it provides you with some extra spending money, it is also an excellent time to start saving money.

Just think of it like this: every little bit counts.

Dollar/cost averaging is the answer. Even small amounts add up, especially if you make saving a regular habit. This is something you can add to your monthly budget (yes, you need one year-round). If it’s in your budget it will make it easier to know where the gaps are, if any, for the time September rolls around and you have tuition to pay.

There are huge advantages to saving money while you enjoy your summer break off-campus – next year at school won’t be quite as difficult to get through as you might have found it to be this year (first year is often toughest on your wallet as you leave home for the first time).

So what’s the best, easiest way?

  • Depending on your employer, you may have the option to have money come right off your paycheque and placed in a savings vehicle. When it comes right off your paycheque, you seldom miss it.
  • If this isn’t an option, then set up an automatic transfer of funds to a high-interest savings account or investment when your pay is deposited in your account.

The adage “pay yourself first” is the secret to savings success. Take the time to meet with your Financial Advisor to select the savings or investment account that best suits your needs and savings goals.

Happy Summer and Happy Saving!

Catch up on all the RU Money-Smart blogs, here: RU Money-Smart Financial Literacy Blog Series.