How Many Regret Not Saving Money In College? (1 Viewer)

[Chuck C]

I spend a ton of money. Before you know it, my savings account is back to about a 100 bucks. I wanna know if I'm gonna regret blowing my bones on fun things (like DVDs, home theaters, big red...)

So lemme ask, do some of you embrace the idea of spending your bones and having a good time with the expectation of being paid a living wage when you graduate, or do some of you think it wise to save what little we have now? Any reasons for either side you take?

 

[MichaelG]

Well since I had to work 30+ hours a week to pay for college, spending a few buck to have fun was a neccesity for me. Enjoy yourself, it's only a few years and you should be able to save plenty afterwords. Just make sure that when you get out of school that you put some money into 401k when you start working. Even $50 a month can be worth while for the first few years, and it will get you trained to continue when you make more money.

 

[Luc]

I took out loans for college so whenever I buy a CD or something, I consider cash with interest attached since when you're out, interest on your loan starts to kick in. After graduating 5 yrs ago, I still have 1/2yr left to pay off my loan. If you're spending loan money, consider this and also consider that one day when you want that mortgage for a house, that loan depending on the amount could affect how much you can get.

I was stingy in college and it paid off because now I feel like a king. If you're used to spending a lot of money in school, you're going to have a hard time holding back when you're working fulltime. Get in the habit of controlling your spending and the rewards will come to you.

I own a house in the Bay Area after getting out of college 4 years ago making not all that much money in the science field. I know people here in the computer and hightechs making over 100K/yr and still can't buy a house. Now I can enjoy life and all the glory of home theater because of the habit I build over the years.

Remember, what separates the haves and have-nots isn't how much you make necessarily, but how you budget the money you make....and that requires self discipline early on. I know it isn't what you want to hear because we all want to enjoy now and worry later, but that later will come sooner than you think. It always come....

 

[Joseph S]

So lemme ask, do some of you embrace the idea of spending your bones and having a good time with the expectation of being paid a living wage when you graduate, or do some of you think it wise to save what little we have now? Any reasons for either side you take?

Spend and spend some more.
Honestly, I was also working on the side in college and receiving the highest available student salary scale doing tech work at $7.10/hr after tax * 20hr per week. It was a cushy job that I enjoyed, but any money saved was quickly spent during a year off after graduation. I now attend Med School and am racking up a major tuition bill each year with zero opportunities for work, but I don't really care. The interest rates are low, you get a decent deferral right, and the cost is so high tuition wise that a few extra grand isn't a big deal to me. I'll probably just send in double each month to limit interest over time. Saving is for people in the "real world" and not those in stuck in "bookland." I do sometimes listen to "Clark Howard" for entertainment, I'll put his advice to good use somewhere in the future.

 

[Matt Stryker]

I would honestly say go ahead and spend it. Your saving power in college is small, and it is one of the last times in your life when you will have so much free time and free choice (that is if you are pursuing a "real job" after school). Enjoy yourself, travel, drink beer, and enjoy it.

Once you do get a real job, contribute heavily to your 401k ASAP. A moderate amount of retirement saving early in life can easily let you retire before your 50s are over.

DO NOT rack up lots of credit card debt though, because you'll have that over your head when you graduate no matter what.

 

[Jeff Braddock]

As a fellow college student, I know where you are coming from. Personaly, I say save. Don't save 100% (that would be impossible), but put back a fair amount. Work out a budget. I know it seems like I'm raining on everybodies parade, but "bookland" not only sets your habits for the "realworld," but (for alot of people) is the "realworld." Nobody will pay you until you pay yourself.

 

[MikeAlletto]

I wish I wouldn't have spent all my money in college. After I graduated I moved to texas to work and I had practically nothing in my accounts when I first started. My parents had to help me with my first months rent because I couldn't even afford that. During college I would only work during the summer. I had many CD's from when I was younger that I had to cash out to get me through school, but if I had spent less on fun I would still have those today and would have been able to pull them out and invest that money better. Instead it went to beer, movies, and pizza...

 

[Joseph S]

DO NOT rack up lots of credit card debt though, because you'll have that over your head when you graduate no matter what.

That's my main rule. Pay off the bill every month. Rack up the bills on low rate subsidized/unsub loans and limit food shopping to approx every 2.5 weeks if you live on your own. (Whatever you do don't consolidate your student loans immediately, you lose most rights of deferment.)

The other rule is to avoid going for the BMW, 5 bedroom apt/house, and dinner at the Ritz every other night when you get out. Wait until you are settled and have a nice retirement fund before becoming a complete fool. I figure if I can live somewhat comfortably on $13,000-$15,000 tax free after tuition paid, than living on anything over $40,000 after taxes is not going to make paying back the loans all that difficult or burdensome.

 

[Scott Weinberg]

A better question would be "How many regret going nose-deep in credit card debt while in college?"
If college taught me ONE thing...it's that credit cards are the source of all life's pain.
I was paying interest on interest on late fees on ATM fees on interest. My debt went from $850 to somewhere around the cash value of San Salvador.
Money is the root of all evil. Unfortunately, to battle that evil...you need a lot of money.

 

[Max Knight]

Save, but recognize that as a college student you have very little income. Saving 10% of your income (pre-tax) is a good goal. There is no reason to not do this in college, especially when your income is likely to be almost microscopic. Saving that 10% can mean not eating out once in a while, or buying the really really cheap beer instead of the cheep beer.

 

[Bob McLaughlin]

I saved during the summer so I could pay for college, but I didn't save any money on top of that. Maybe save a little bit so you can get a good start when you graduate (downpayment, rent, whatever) but I wouldn't deny yourself too many experiences because of a few bucks. Definitely avoid racking up credit card debt, though.

 

[Scott L]

Here's another college student that doesn't save and doesn't really recommend to either. I say enjoy your 4-6 years (6 for me, ughh) and worry about saving when you start making the real dough. And as advised above most guys I know say "I'm gonna get my WRX as soon as I graduate!" I recommend waiting a while, get everything paid off, have a decent amount in your savings, then trade in your used clunker and get that FPTV.

 

[MarcVH]

It's hard to make blanket advice, other than the suggestions others have made to not let yourself get riddled with credit card debt while in college.

I don't know how a "ton of money" is available to be spent; a good part-time job? a college with really cheap tuition? big scholarships? generous parents? trust fund?

If you receive need-based financial aid, then there's little point in saving, because anything you save will be deducted from your aid in the following year.

In today's economy, you may not be able to count on getting a well-paying job in your chosen field quickly after graduation. Obviously this will depend what your major is and lots of other random factors, but you will need a money to exist for a while and to conduct a job search. If you have substantial student loans, that further raises the bar.

 

[Paul_D]

Money is the root of all evil. Unfortunately, to battle that evil...you need a lot of money.

 

[Holadem]

How many regret going nose-deep in credit card debt while in college?

Good question.

I just graduated and my debt in the late teens plus I totally fucked up my credit. This is going to take years for me to get back on track.

To make a long story short, the messed up credit could have been avoided, but not the amount of debt.

Honestly, if I had to do it over, I wouldn't save (I got into debt because my income was not enough) but I would do everything to preserve my credit.

--

Holadem

 

[Peter Gizzi]

I was on the 10 year plan No, I wasn't studying medicine. I saved a bit here and there, as I was a bartender / waiter but I enjoyed myself immensely and wish I could go back, if just for a little while. I ended up with a couple of great jobs after a misspent youth but the fun factor just isn't the same. I miss the hanging out, playing in the band, the various women I pursued...some I still think about, etc. Just don't be crazy with your credit and enjoy. Some things, like memories, you simply cannot buy.

 

[Chuck C]

I'm very pleased with the responses so far. It looks like I'm in good shape...I have no debts, more cash in my savings than I had this time last year, and alotta DVDs! I also use a debit card. I don't even own a credit card. Maybe I should forget about credit cards all together, huh?(I know my dad would like to!)

 

[Philip_G]

I'm a senior in college, I was just talking to a buddy of mine, and we both regret not just buying a house here when we moved, rather than paying rent.. houses are so cheap up here the 600 or so we drop each month on rent could nearly cover a modest mortgage.. not to mention renting out the othr rooms to friends, and having equity, instead of pissing away rent each month.

 

[Neil Joseph]

If I had to do it all over again, I would save a lot more money. The biggest opportunity to save money comes afte you graduate and you get your first fulltime job. If you are still at home, you can really save big bucks.

 

[Max Knight]

You should get a credit card, because you need to build a credit rating. Often times when you want to rent your first apartment the broker will run a credit check on you. You want to make sure that you have some sort of credit history (a positive one!) so that you can get the apartment you want.