While many college grads have big plans to live in a big city, backpack abroad, get married, or go to grad school, they don’t have a realistic plan to pay for it. I wanted to travel to Thailand after graduating, but when the summer rolled around, I couldn’t afford to travel and move out of my parents’ house. I had to choose.
Young consumers should start saving money now for their big plans, as well as for financial emergencies. Make it easy by setting up an automatic transfer to a savings account every month. If you can’t afford to do a big lump sum towards your savings, start small. The Keep the Change program from Bank of America automatically deposits change from your debit card purchases to your savings, so you can automatically save without feeling a big pinch in your budget. Or try Piggymojo, a text message tool that helps you skip impulse purchases, like a latte or candy bar, and instead pledge that money towards savings.
