Saving Your Money

Savings helps you reach many of your financial goals, whether they are short-, mid- or long-term. They help you with paying for:

• Education

• Emergency situations

• Retirement

Automatic Deduction from Your Paycheck

One of the easiest ways to save money is to have a certain amount of money from your paycheck be automatically deposited into a savings account.  This way you never see the money, but you are allotted a certain amount to save. 

Types of Savings Accounts

Individuals have different choices on saving options based on their preferences on time frame, investment expectations and other related factors. For example, if the availability of your money is very short, you don’t want to lock it in a CD account. Here are some of the type of accounts available.  For more assistance, ask your financial institution representative.

Understanding Interest & Compound Interest Over Time

When you save money - your money earns interest at a certain rate.  The interest amount is added to your original savings amount. 

• For example, say you have an original (principle) amount of money = $1,000.
• The account you have deposited it in has a 10% interest rate for one year = $1,000 x .10
• The first year you earn $100 which brings to total to $1,100.
• The second year you earn 10% interest of $1,100 =$110
• And so on.

Example: If you save $25 per month at a interest rate of 4%, you will have $1,675 after 5 years.

Rule of 72

The rule of 72 tells how many years it will take for you to double your investment. Take 72 and divide it by the interest rate you’re earning. If you’re earning 8 percent, then 72 ÷ 8 is nine years - which means your money will double in nine years.

Resources: http://www.edfund.org/pdfs/Saving_100_Saving_For_Goals.pdf

Savings Tips for College Students

Types of grants & scholarships which either give you free money while you study, or pay you to work while you are in school:

• Graduate Assistantship

• Teaching Assistantship

• Residence Assistantship

• Scholarships

Graduate Assistantship Office of Towson University

Address: 7800 York Road Building, Room 232
Phone: 410-704-4484
Fax: 410-704-3434

E-mail: gao@towson.edu

Financial Aid Office of Towson University

Address: Enrollment Services, Room 339

Phone: 410-704-4236
Fax: 410-704-2584    

E-mail: finaid@towson.edu

Food

• Collect coupons and follow the weekly sales at the grocery store.

• If you live on-campus with a meal plan, don’t waste it.

• kip the fast food forays and late night take-out.

• Make your own coffee, save on daily beverages.

• Limit the frequency of eating out.

• Sign-up for coupon offer and saving on discount.

Books

• Borrow books from someone in the college if possible.
• Buy used text books from online or local bookstores..
• Sell your textbooks online or bookstore.

Transportation

• Try to get an apartment that is close to campus so you can walk or bike to school.

• Consider using p ublic transportation to save on gas and parking.

Off-Campus living

• Get a studio apartment or split rent with roommates. Rent a place that will have all appliances provided.

• Don’t spend a lot on decorations and accessories.

• Pay utility bills before they are due. Avoid late fees and bad effect on credit score.

• Save on electricity expenses, as they can be costly.

Shopping

• Distinguish between what you need to live versus what you want.

• Patronize places that offer student discounts.

• Shop for stuff you really need during tax-free week.  (Annual tax free shopping event in MD beginning on Aug. 8, 2010, and ending on Aug. 14, 2010)

• Buy in bulk. You’ll save money per unit for a pack of twelve bars of soap versus singles.

• Wait to shop for holidays and gifts during sales times. 

Travel

• If you must travel, compare prices among different travel agency. Here are some great websites to be consider:

www.statravel.com www.studentuniverse.com www.discountairfare.com/

www.cheaptickets.com www.cheapflights.com/ www.farecompare.com/

Financial Services
Administration Building, Fourth Floor (map) (How to use the map link)
Hours: Monday - Friday, 9:30 a.m. - 3:30 p.m.

Phone: 410-704-5269
Fax: 410-704-4910
E-mail: mfortier@towson.edu