Spokane Falls Community College student Christina asked an interesting question during a two-hour Investor Education in Your Community workshop on March 30th.
“I receive funding from social programs that pay my tuition and support my kids. My aid checks are based on what I have in my accounts. How do I save for the future when it might reduce my aid”?
Christina has a great point. While ideally we have to look at our dollars in terms of how they can support us today, tomorrow, and in the event of an emergency, there are times when saving is difficult for reasons other than the size of our paychecks.
If you’re applying for a student loan or weathering hard times with the support of some sort of aid program, know the rules. Research the program before you apply. Find out what could limit your ability to be accepted. Inquire about the maximum dollar amount that you can save and invest prior to impacting your eligibility for the program, and see if retirement account balances, such as an IRA or Roth IRA, are exempt from qualifying resources.
Living without an emergency savings account is like skydiving without a parachute: It rarely ends well. Simultaneously, these aid programs help us earn the bigger paycheck that will eliminate our need for aid. Seek a balance where you can get the support you need while squirreling away just a bit for that inevitable rainy day.
Over the course of two days, all students received an amazing array of investor education resources from the Investor Protection Trust. The WA State Dept. of Financial Institutions also contributed their booklets and brochures designed to support efforts to save and invest safely and wisely.