Twenties Economics | Savings Account

Academic TidesTwenties EconomicsAdulting 101University LifeMoney + Finance
Written By Shaliya King

Hello Everyone,

I hope all is well!

Let’s talk money—specifically, savings. As a university student, one of the smartest moves you can make is building strong financial habits early. And guess what? Opening a savings account is a great place to start.

Whether you’re saving for emergencies, a future apartment, or just trying to keep your wallet from crying by mid-semester, having the right kind of savings account can make a big difference. In today’s post, we’re diving into why savings accounts matter, which types every student should have, and how to get started—no finance degree required.

💸 So... What Even Is a Savings Account (And Why Should You Care)?

A savings account is a secure place to stash your money while earning a little interest on the side. It encourages consistency, discipline, and goal-setting. For students, this means:

  • Saving for future goals (study abroad, first car, graduation trip)

  • Preparing for emergencies (like surprise medical bills or a laptop meltdown)

  • Building healthy money habits before post-grad life hits

💡 The 3 Savings Accounts Every University Student Should Consider:

1. Long-Term Savings Account

This is your "big picture" account—used to save for future milestones like a car, house, or even retirement. (Yes, it’s early—but trust me, compound interest is your bestie.)
Types include:

  • High-yield Savings Accounts: Think Discover Bank or American Express or Marcus by Goldman Sachs.

  • Roth IRAs: Great if you’ve got a part-time job and want to start retirement savings early.

  • 529 Plans: If you're saving specifically for education costs.

2. High-Yield Savings Account

This is perfect for stacking cash with a little extra interest. While rates fluctuate, these accounts usually pay more than your average savings account—without tying your money up for years.

Pros:

  • Higher interest

  • No monthly fees (usually)

  • Easy online access

Consider: Discover Bank, Marcus by Goldman Sachs, Ally, or American Express.

3. Emergency Fund

Your “break glass in case of crisis” account. Ideally, this should hold 3–6 months of living expenses—but even $100 is a start. The key here is consistency, not perfection.

💡 Pro Tip: Set up automatic transfers (even $5–$20 a week!) and avoid dipping into it unless it’s truly an emergency—like rent, car repairs, or medical costs.

Good places to keep it?

  • High-yield online accounts

  • Local credit unions (which often have low fees and better service)

💼 Sinking Funds: The Secret Weapon for Stress-Free Spending

A sinking fund is like a savings side quest—it’s money you set aside over time for specific, expected expenses. Think of it as the opposite of an emergency fund: instead of reacting to a crisis, you’re planning for it.

Some sinking fund examples for students might be:

  • Semester textbook costs 📚

  • Travel home for breaks ✈️

  • Summer internships or relocation

  • Concerts, birthdays, or holiday gifts 🎁

  • Future tuition or exam fees

You can either open separate sub-savings accounts (many online banks like Ally or Marcus offer this feature), or keep a spreadsheet or budgeting app that tracks each sinking category.

💡 Pro Tip: Automate a small weekly or monthly transfer. $10/week = $520/year toward spring break or back-to-school shopping—without stressing your wallet last minute.

🏦 Best Savings Accounts for Students

Here’s what to look for:

  1. Online Savings Accounts

    • Higher interest, lower fees

    • 24/7 access

    • Great for tech-savvy students

  2. Credit Union Accounts

    • Community-focused

    • Lower fees, higher returns

    • Often more flexible and educational

  3. Student-Specific Savings Accounts

    • Tailored perks: fee waivers, free ATMs, or GPA rewards

    • Often bundled with student checking

✅ Before choosing, compare interest rates, fees, ATM access, and how easy it is to transfer money. And don’t forget: accessibility matters. You want saving to be a habit, not a hassle.

🧠 Quick Qs, Real Answers (Mini FAQ)

What if I don’t have much money to save?
Start small. Even $1 a week is better than nothing. Habit beats amount.

Can I withdraw from savings?
Yes, but keep it purposeful. Withdraw for emergencies or pre-planned goals only.

Will a savings account affect my FAFSA or aid?
Only large balances might. For most students, small savings won’t impact your aid significantly—plus, you’re learning smart money habits.

💻 Saving Without a Job? Here’s How.

No steady paycheck? That’s okay. You can still save from:

  • Financial aid refunds

  • Birthday/holiday money

  • Side hustles

  • Selling clothes/books

  • Scholarships or stipends

Even $5 every two weeks counts. Just get in the habit of paying yourself first.

💳 Final Thoughts

Building savings in college isn’t about being perfect—it’s about being intentional. Whether you’re saving $5 or $500, every deposit is a vote for your future self. And the earlier you start, the more options you give yourself later.

Here’s the truth: your 20s aren’t just about surviving—they’re about strategically stacking. Emergency funds, sinking funds, high-yield accounts—they’re not just buzzwords, they’re real tools that make your money work for you.

Start small. Stay consistent. And remember: you're not behind—you’re getting ahead. I hope this guide helps you take that first step toward financial confidence. Your future self will thank you.

💰 Referral Disclosure: I may earn a referral bonus if you sign up for a Marcus by Goldman Sachs account using my link. It’s at no extra cost to you, and I only recommend services I use and trust.

Shaliya King
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Twenties Economics