Here's How Much You Should Have in Savings if You're a College Student

If the headline of this article caused you to laugh so hard that your coffee, Coke, or Boone’s Farm nearly sprayed your computer screen, congratulations. You’re officially a broke college student. Having been there myself, I was curious what the experts would have to say. Here, we offer some of their thoughts and some of our own.

Paycheck to paycheck

In an article about how much Americans have in their savings accounts, Time.com references the Paycheck-to-Paycheck Report, a collaboration between LendingClub and PYMNTS. That report showed that 60% of American adults live paycheck to paycheck. And of those getting by week to week, 40% are considered high-income earners.

If 60% of adults currently live paycheck to paycheck, it's tough to imagine how a college student is supposed to have a plump savings or checking account. Unless a person is financially supported by family, worked throughout high school and saved darn near every dime, or enrolled in college after years spent in the workforce, building a fat bank account seems like a nearly impossible task.

Old data

Typically, one of the clearest pictures we have regarding how much the average person has in savings (by age) comes from the Federal Reserve's Survey of Consumer Finances (SCF). However, since the Fed only conducts the survey every three years, the "latest" data we have is from 2019. Fortunately, its next survey is scheduled for release later this year.

In the meantime, we took a look at a survey commissioned by Neighbor.com and conducted by Pollfish in 2022. That survey found that U.S. college students and recent graduates of all ages are not swimming in the dough. A whopping 61% have less than $1,000, and the majority of those don't have anything put away for a rainy day.

Why does it matter?

Here's what we're pretty sure of: When you're working your backside off to get through classes and plan for your future, the amount of money in your pocket takes a backseat. But there are three reasons why how much you have saved matters.

1. You have expenses

Unless you're sitting in your room doing homework 24 hours a day, chances are you run into small expenses. According to First National Bank and Trust, college students spend, on average, $2,000 on extras each year. While that expense varies by student, it's a nice round number. If you don't have the money tucked away somewhere, you may find yourself doing without or borrowing more than you want to.

2. Emergencies happen

You never know when something will go wrong. Your heat could go out in your dorm or rental housing for days, forcing you to pay for a hotel room until the lights are back on. Your car could have mechanical problems, or your bike could need a new tire. Small or large, emergencies are stressful when there's no money in an emergency savings account to cover them.

3. You may face an uncertain job market

Ask anyone who graduated from college around 2008 about how tough the job market was. For a more recent take on the subject, ask anyone who graduated smack dab in the middle of the pandemic. While we hope you have dozens of job offers -- each better than the last -- following graduation, you may need a little money to carry you over until the market improves.

How much you should aim for

If your savings are currently a bit anemic, aim for enough money to cover three to six months of expenses. To put a number to that goal, add up all your regular expenses and multiply the total by at least three. Hopefully, you'll never need to dip into those funds, but if you do, they'll be waiting for you.

Money-making ideas

If you find yourself without savings, the first thing to do is remind yourself that most of us have been where you are today. We survived, and so will you. However, if you're in the mood for actionable advice, here are some practical ways to improve your situation.

• Get a part-time job: We understand that, like money, your time must be budgeted. After all, you only have so many hours in a day. Take a hard look at your schedule and figure out where you might be able to carve out time. First, look for on-campus work. You may be able to land a job in the dining hall or university offices. Your school may be looking for people to work in IT, transportation, or even as a resident advisor for the next term. If you can't find an on-campus job, look for an off-campus position.
• Create a part-time job: Freelance opportunities are limited only by imagination. Advertise your services as a babysitter to families living in the area. If you're a strong writer, start a business as an editor or proofreader. Tutor students in a subject you're particularly strong in. Walk dogs, house sit, do yard work, or drive for a delivery service. Pursue any side hustle you think you would enjoy (as long as it's legal).
• Open your own shop. Sell anything you don't need, like gently used clothes and textbooks. Better yet, start a business selling other people's stuff. Let other students know that you're in the business of selling used items, and once someone has trusted you with their belongings, take photos, advertise, and keep a portion of the proceeds.
• Never stop looking for scholarships: Even if you only "sort of" qualify, apply.

Finally, remember that you're working toward something. You may not have much money in the bank today, but that won't always be the case.