Smart Money Moves for 19-Year-Old College Students With Savings

Ever found yourself wondering what to do with the money you've managed to save as a young college student? You're not alone. Let's dive into some smart money moves you can make to utilize your savings effectively while you're still learning the ropes of adult life.

Start With a Solid Budget Plan

Before you run towards the flashy investment options, take a moment to establish a budget. Trust me, it's less exciting than the stock market, but it's crucial. Consider it the foundation upon which you'll build your financial castle.

Here's a straightforward method to draft your budget:

• Determine monthly income from all sources.
• List all your monthly expenses.
• Assign spending limits to non-fixed expenses.
• Always set aside a chunk for unexpected needs.

Remember that fictional story I mentioned? When my pal Jake was a college sophomore, he realized he was spending way too much on late-night takeouts. After he drafted a budget, he not only curtailed his spending but also saved enough to invest in his first stock.

Invest in Knowledge—And Maybe a Little More

At 19, your biggest asset is time. If you're interested in growing your wealth, consider dipping your toes into the investment pool. Start small. Apps like Robinhood or Acorns can be helpful guides.

But before you throw your money into the stock market, invest in learning first. Books like "The Intelligent Investor" by Benjamin Graham or free resources like Coursera courses on finance can be a game-changer.

Build an Emergency Fund

While investing is important, don't forget to build an emergency fund. Aim for saving at least 3-6 months' worth of living expenses. This safety net will help you handle any unexpected hiccups.

Open a High-Interest Savings Account

If you're interested in letting your money grow while keeping risks at bay, a high-interest savings account might be more your speed. They offer better returns than a regular savings account and keep your funds accessible.

Have friends who are also sorting out their finances? Create a finance group. Not only will you all learn from each other, but you’ll also have fun tracking your growth.

Conclusion

You don't need a Wall Street broker to start making smart financial choices as a college student. By budgeting, learning about investments, saving for emergencies, and possibly putting your money in a high-interest account, you're on your way to securing your financial future. But here's the real question: What money moves would you make if you had $25,000 saved up at your age?