A savings account is an incredible financial tool for students and helps inculcate the habit of savings from a young age. Having a savings account is the best way to ensure that students understand the value of money, and it is a way to nudge them to a path of self-reliance. Here are a few reasons why a savings account is important for students:

• It teaches you to save
  While in college, you have to pay for your books, food, hostel fee, and several other daily expenses. As a result, you must learn to live on a budget. There are only two possible sources of funds for students: their allowance and earnings from a part-time job. Regardless of the source of funds in your student life, you must ensure that you do not exhaust it in the first few days. This is one of the reasons why a savings account is important for you as a student. It helps you understand the need, importance, and benefits of savings. This learning will stick by you for a long time and will help you grow up to be a financially responsible adult.
• Money grows
  Cash is accessible 24/7, so the chances of you spending it are way higher than if you have funds in other forms. If your money is in your savings account, you will require an extra effort to get access to your money, which may delay, postpone, and even prevent unnecessary expenses. Another reason why a savings account is important for you as a student is that the money you save in a bank earns interest. It grows over time and encourages you to save more.
• Your money is safe
  Carrying a chunk of cash in your wallet increases the risk of it being stolen as compared to when you have the amount in a bank account. Also, what if you lose your wallet full of cash? You will naturally lose all your money. On the other hand, nobody can take money from your bank account without your permission. Even if you lose or misplace your card, you can contact your bank, block it, and get a new one issued.
• No minimum balance required
  Unlike other bank accounts, there is no mandatory minimum balance requirement for a student’s savings account. You can easily find a zero balance account, so you don’t attract any penalties even if your account has no money in it.

These are only some of the reasons why a savings account is important for you as a student. You must understand the many benefits of having a savings account to start saving and lead a financially independent life.