Personal Finance Review – Save While You Can Edition

November 11, 2007

Oh to be young again!  As I visited my Alma Mater this weekend to cheer on the soccer team in an important post-season game I couldn’t help but catch some of the conversations of the students around me in the stands.

Their plans and concerns are much the same as mine were ten years ago but much different than mine are now.  If only I knew then what I know now.  One thing that people in that age group probably can’t fully appreciate yet is the power of time in building your financial security.

If you rack up tons of credit card debt and student loans it will likely take years & years to pay them off.  On the other hand, if you ease up on the spending and go heavy on saving and investing when you’re young, the power of compound returns can help you build a nice financial cushion in a decade or two.

If I had any advice to give to the students in those stands, it would be to cut back on the borrowing and save while you can.  Don’t put it off until you’re in the “real word”, if you’re smart now the real world will be a nicer place once you reach it.  Here are some articles that could help them make those good decisions:

The Sun covers borrowing & debt and the Silicon Valley Blogger talks about credit in emergencies. Lazy Man has a guest post on 7 ways procrastination costs money while Money, Matter, & More realizes David Letterman isn’t so funny after all

Generation X Finance discusses the Rule of 72 and Free Money Finance gives some pointers on how not to leverage credit cards. Did you know you have secret credit score? Five Cent Nickel fills us in and Blueprint for Financial Prosperity has an interesting take with you are a business, act like one!

No Credit Needed covers maximum retirement contributions and the Mighty Bargain Hunter offers tips on setting up an eBay store. The Simple Dollar asks a question we’ll have to deal with eventually, Should You Give Your Child An Allowance For Doing Chores?  Last but not least, Get Rich Slowly presents a translation of Ten Principles of Economics

Thanks to My Two Dollars for hosting last week’s Carnival of Personal Finance and including my post on people’s ignorance about money.

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Ben

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Ben
Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

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2 Responses to Personal Finance Review – Save While You Can Edition

  • bill

    Thanks for the great resources. I think experience is always your best teacher and many of these students will eventually get it, some never will.

  • J.C. Carvill

    When I was in college, I already heard and read similar advices about saving money to ease up the future.

    Still I had to experience the fall when early entering the real world, and crawled back up slow and steady to where I am right now.

    It was more than possible for me to save big back at university, but there is a huge difference between knowing (knowledge) and understanding (wisdom).

    J.C. Carvill
    Email: support@cosmosing.com
    URL: http://www.cosmosing.com/jeanclaudecarvill/index.php

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