This Sunday, Oct. 31, communities and businesses all around the world will be celebrating World Savings Day.
First introduced in 1924, this underappreciated holiday was created with the intention of promoting financial literacy and reducing poverty through savings.
“Saving is important because it makes you a rational spender – saving should not be the goal, nor a means to make more money,” Tim Zhang, an assistant professor of Finance said, “Instead, it should be a way to help us make better allocation decisions on the things that matter more to us and our loved ones in the long run.”
Saving in college can prove to be challenging. Between a tight budget and a busy schedule, building a savings account can seem like a tedious chore.
In a survey conducted by DepositAccounts in 2019, only 1 in 3 college students have at least $1,000 in savings.
The good news is that faculty from the Department of Accounting and Finance believe possessing a ‘saving mindset’ can be just as effective as the actual process of building savings.
“Most college students are not in a position to save meaningful amounts of money,” Phillip Treick, a finance lecturer said. “Savings get a lot more important, in my opinion, once you start your professional career.”
Wacinque Amistad Kaizen BeMende, a student entrepreneur at UW, has been utilizing his Overseas Combat Veteran education benefits to grow his business, KaizenRhino Solutions International Consultancy.
Today, BeMende celebrates World Savings Day by educating youth on the importance of building savings.
“Individuals are not born knowing the benefit of saving. When WSD was established, the core focus was to promote, educate, and inform about the benefits of having savings in a financial institution, not under your bed or pillow,” BeMende said.
Those who are looking to save during their college years are advised to create a realistic budget and stick to it.
Mitchell Oler is one of the chairs of the Accounting and Finance Department.
“I would suggest starting by creating a budget that includes a savings component with a set amount,” Oler said. “This method can put savings on the forefront of the student’s mind.”
Oler warned that students need to avoid thinking that savings just consists of whatever money is leftover after spending.
“A trap to avoid is the ‘I’ll save whatever I don’t spend’ mentality, which generally results in no savings at all,” Oler said.
While finances are an integral piece of adult life, Professors Zhang and Treick stress the importance of making the most of educational and social experiences in college.
Despite possessing little to no savings during his time as a student, Treick said that he gained new insight due to these struggles.
“I lived off Hamburger helper, without the hamburger. I always had a job while l was in school and it was helpful to my entertainment budget,” Treick said. “It also forced me to prioritize my time which was important.”
Despite the difficulties, Trieck claimed he would not change a thing.
“I had a lot of fun in college, I can’t think of anything I would have done differently,” Treick said.
