Saving and Investing for Students

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SAVING AND INVESTING
KNOW YOUR INCOME AND EXPENSES
The next step is to keep track of your income and your ex-
penses for every month. Write down what you earn, and then 
your monthly expenses. 
PAY YOURSELF FIRST
Include a category for savings and investing. What are you pay-
ing yourself every month? Many people get into the habit of 
saving and investing by following this advice: always pay your-
self first. Many people find it easier to pay themselves first if 
they allow their bank to automatically remove money from 
their paycheck and deposit it into a savings or investment 
account. 
If you work, you may be eligible to participate in an em-
ployer-sponsored retirement plan such as a 401(k), 403(b), or 
457(b). That automatically deducts money from your paycheck, 
and may reduce the taxes you are paying. Additionally, in many 
plans the employer matches some or all of your contribution. 
When your employer does that, it’s offering “free money.” 
Any time you have automatic deductions made from your 
paycheck or bank account, you’ll increase the chances of being 
able to stick to your plan and to realize your goals.
FINDING MONEY TO SAVE OR INVEST 
If you are spending all your income, and never have money to 
save or invest, you’ll need to look for ways to cut back on your 
expenses. When you watch where you spend your money, you 
will be surprised how small everyday expenses that you can do 
without add up over a year. 

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U.S. SECURITIES AND EXCHANGE COMMISSION
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7
KNOW YOUR INCOME AND WHAT YOU SPEND
Monthly Income
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Monthly Expenses
Savings 
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Investments 
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Rent or mortgage
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Telephone
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Utilities
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Clothing
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Food
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Transportation
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Loans
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Insurance
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Education
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Music
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Recreation
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Gifts 
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Other 
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