Grow your student savings | Student

As a student, saving money might seem like a distant dream. But it’s not out of reach. The key to saving as a student is to know your goals and make a plan.

Plus, getting into the habit of saving will help you be more financially independent when you graduate. It takes some organization, but getting a head start will pay off in the end. Every little bit counts.

Why do I need to save?

For something big

If you spend money without thinking, you might find you’re falling short when you want to make a big purchase. Whether you’re hoping for a vacation, a car, or a nice pair of shoes, a savings plan will get you on track.

For the future

Once you graduate, your expenses can start to add up. Establishing good saving habits now will help you prepare for the future—whether you have student loans to pay back or you want to move into your own place. Plus, if you want to buy a condo or house down the road, it’s never too early to start saving.

For a rainy day

A financial safety net can help you through times when you need extra money. You never know what will come up, so it’s smart to keep money aside for emergencies and surprise expenses.

How do I create a savings plan?

1. Create a goal

Without a goal, it’s hard to motivate yourself to put money aside. Thinking about what’s important to you will help you identify your goals. Once you know what you’re saving for, figure out how much it costs and how much you can set aside each month

To calculate how much you need to contribute each month to reach your goal, try the CIBC Savings Calculator.

If you have a CIBC bank account, you can also create a savings goal through CIBC Online Banking®. Simply sign on and select “Savings Goals” under “My Accounts,” then “Create a Goal.” You can keep an eye on your progress every time you sign on.

2. Make a budget

Now that you have a goal in mind, add your savings contribution to your monthly budget. This will help you reinforce the habit and avoid the temptation to spend your extra money.

Every little bit counts. Even $10 a month will make a difference over time.

Learn more about how to create a budget

3. Pay yourself first

Paying yourself first means setting aside your savings before you start spending.

To help you separate your spending money from your savings, you can open a savings account if you don’t already have one. A savings account lets you earn interest so your savings will grow faster.

Make sure you have enough to cover your fixed costs (such as your rent and phone bill), and then immediately set aside your savings amount.

To make it easier to save, set up automatic transfers to your savings account. You can set the amount and frequency of the transfers to help you meet your savings goal.

4. Track your spending

When you’re saving, it’s important to know where your money is going. Keep track of your monthly transactions and see what you can cut back.

Saving is all about balance. You don’t need to deprive yourself, and you can still indulge sometimes. When you understand the big picture of what you’re saving for, you can make good decisions in your daily spending.

Student saving tips

Resist impulse buys

Wait at least a day before you buy the latest thing. You might realize you don't actually need it and you'd rather save your money.

Look for deals and discounts

Wait for sales instead of paying full price. Plus, lots of businesses offer student discounts—movie theatres, retail stores, gyms, and more. It never hurts to ask!

Be resourceful

Share textbooks with friends, master the art of thrifting, try trading instead of buying. There are lots of ways to save.

Keep your eyes on the prize

It's okay to indulge sometimes, but don't forget about your goals. You'll thank yourself later for staying on target.

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