Even though some say that the economy is recovering, there are plenty of people who are still going through hard times. Many families have only been able to find temporary jobs and are still struggling to find something permanent. It is especially difficult for college students to find and secure employment, even after they have graduated from college. Also lots of jobs are looking for ways to cut back on their own expenses. These companies are getting rid of various departments, outsourcing jobs, and double the work loads of those who still work there. Below are several top reasons why your college student may want to have money set aside to cover any loss of employment.
You will not go deep into debt so early in life
Lots of college students end up very deep in debt when they lose their job and can not pay their bills. Just about every college student has a cell phone and those bills can quickly grow out of control. If they suddenly lose their job they can end up ringing their credit before they even get out of school.
They will no over burden their parents and family
Parents are also having difficulty making ends meet nowadays. If they suddenly have to start trying to pay off their college age child’s bills it can be a bit overwhelming. Stashing away extra cash, can really help if you suddenly find yourself unemployed. You can pay off all of your bills and get rid of things like your cell phone until you get another job. Some take the money that they have in their emergency fund account to purchase a prepaid cell phone. This cell phone will be used only for emergencies and you will have enough minutes to make emergency calls.
A great start after graduation
After graduation, there are some students who don’t get the quick job they expect. In some cases it can take from a few months to an entire year. If they have the emergency fund all set up, they will be able to manage while they are looking for a job.
It sets them up for later in life
Learning to place money in an emergency fund is really a great way to practice for adult life. Once your child is out of college and really begins to start a life of their own, they will be used to setting up an emergency fund. Saving money is one skill that can definitely last you through out the entire course of your life.