Student Blog
Brought to you from your @GoogleStudents friends. From pre-university to PhD (and beyond), we got you.
Getting Financially Fit - Five Tips for Starting Young
May 12, 2010
Here at Google we’re working on promoting financial fitness across the company. Googlers recently asked for more resources to explain the company’s compensation plan and retirement fund options, as well as information about personal budgeting and investing. This request has sparked a new program of financial classes, speakers, and online resources for our employees. With this in mind, we’d like to share a few ideas with you, because it’s never too early to take charge of your finances!
All of us have (or should have) financial goals. For some the goal is to save enough to buy a car; for others it’s to pay for college without student loans. Longer-term goals might include buying a house, and definitely include building your retirement savings. Whether your goal is to retire as a multimillionaire in your 30s or something more modest, your best bet is to start saving right now. Here’s how to get started:
1. Avoid debt.
Credit cards lure many students with their instant purchasing power. With interest rates for many cards now in the 18-25% range, even if you make the minimum payment on time every month, your debt can linger for several years. And if you’re late with a payment, you’ll be hit with overdue payment fees and higher interest rates. The best bet is to avoid credit cards altogether and only purchase things you can afford
right now
. Seriously.
2. Be frugal.
You’ve probably already heard the common tips for cutting costs -- skip the $4 latte, pack a lunch instead of eating out, watch
Netflix
movies instead of going to the theater, yadda, yadda, yadda. (These are all true, by the way.) But there are many additional ways to be frugal and keep more cash in your pocket. You probably already buy your textbooks at
Amazon.com
or
Half.com
, but if not, check them out (or Google “cheap textbooks” to find more options). You can also save money by buying clothes at local department stores instead of paying high-prices at the mall -- it’s okay, really. Bottom line: Look for ways to cut costs and eliminate purchases that aren’t absolutely necessary.
3. Pay yourself first.
At the beginning of each month, budget your expenses for the next 30 days and include savings as one of your budget items. Then, put the allotted money into your savings account
first
before you pay the rest of your bills. By paying yourself first, you ensure that you’ll stay on track with your saving plan. Note: Many online savings accounts offer a higher interest rate than traditional brick-and-mortar banks, so do your research to get a better return on your money.
4. Build an emergency fund.
Financial experts recommend having a 3-6 month emergency cash fund. This means having enough money in your savings account to cover 3-6 months of all your expenses like rent, food, utilities, cell phone, transportation, etc. While this is a lot of money to set aside, especially on a student’s budget, don’t let the idea overwhelm you. Simply start saving now and grow your fund bit-by-bit.
5. Sign up for your employer’s 401(k).
In the United States, a 401(k) plans allow workers to save for retirement. When investing in a 401(k), you don’t have to pay taxes on the money you contribute -- or on the interest that grows on your investments -- until you take the money out in your retirement years. Now, you probably won’t be eligible for an employer’s 401(k) until you’re working full-time, but keep this in mind for the future because a 401(k) is a great way to build a solid retirement fund.
Speaking of retirement plans, Google’s 401(k) plan offers an industry-leading company match of up to $8,250 per year. So, for employees who contribute the IRS maximum of $16,500 per year, Google chips in another $8,250 for a total of $24,750 a year! This is just one way Google helps our employees build a secure financial foundation.
Whether you’re in school or venturing out into the workforce, taking charge of your finances is the smart thing to do -- so get started today!
Posted by Jeff Brady, Google Benefits Program
Post a Comment
Labels
A Day in the Life of a New Grad in Google Dublin
7
AdCamp
2
AdMob
11
Ambassador Program
14
APAC
7
Appy Trails
28
Back to School
4
Better Know a New Grad
1
Better Know an Intern
16
Better Know an Office
4
Black History Month
10
Caitlin Talks to an Engineer
9
Chrome Extensions
3
Chromebook
1
College Tips by Google
1
Community
14
Conferences
16
consortium
1
CSSI
5
Day in the Life
2
deSTEMber
1
Development Programs
1
Diary of a Business Associate Intern
1
Diary of a Summer Intern
41
Diary of a Summer Intern - Erika
9
Diary of a Summer Intern - Franklin
3
Diary of a Summer Intern - Jess
3
Diary of a Summer intern - Luke
3
Diary of a Summer Intern - Madelaine
4
Diary of a Summer Intern - Pablo
3
Diary of a Summer Intern - Rio
4
Diary of a Summer Intern 2012
18
Diary of an MBA Intern
2
Education
19
EMEA
44
Europe
7
Events
13
Exploring Design at Google
4
GHC15
6
Going Green
6
Gone Google
2
Google Code University
1
Google Code-in
1
Google Games
3
Google Japan
1
Google Lime Scholarship
1
Google on campus
2
Google Online Marketing Challenge
10
Google Science Fair
2
Google.org
1
Google+
6
Googlers
14
Googlers Beta
11
Grace Hopper
11
GradTips
9
Hangouts On Air
21
Inside ITRP
6
Intern Insights
31
Intern Program
73
Interns Making an Impact
7
Interviews
1
Jobs
5
just for fun
30
K-12 (Pre-university)
14
LATAM
2
Life at Google
17
Middle East
1
My Path to Google
29
My Summer at Google
15
My Summer at Google 2012
10
North America
4
Office Environment
4
Open Source
9
PhD
7
Products
94
Programs and Competitions
116
Recruiter Tips and Tricks
15
Rice Plus
4
Scholarships
56
Search
1
STEM
2
STEP
1
Student Tips
15
Students
13
Summer of Code
1
Teach Parents Tech
10
Tech Students
3
Tips and Tricks
27
Women in Engineering
20
Young Innovators
10
YouTube
2
Archive
2018
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
2017
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
2016
Nov
Oct
Sep
Aug
Jul
Jun
Apr
Mar
Feb
Jan
2015
Dec
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
2014
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
2013
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
2012
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
2011
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
2010
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
2009
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
2008
Dec
Nov
Oct
Sep
Feed
Google
on
Follow @GoogleStudents
Interested in opportunities and programs for students? Visit
google.com/students
.
