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About Gina Boykin
Expertise
Financial planning, debt management & credit cards, and money-saving tips for adults and teens. Saving vehicles such as CDs, treasuries, bonds, and money-market funds. I provide honest, objective and relevant information to help you made the best decision for your money.
Experience
Over 10 years of combined experience in accounting, audit, investing, entrepreneurship, real estate.
I am the CEO of Atlanta Y.E.S., a nonprofit organization dedicated to financial literacy for youth.
Education/Credentials
B.S. Accounting, 10 years of experience in accounting, audit, and investing
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You are here: Experts > Shopping > Frugal Living > Living on a Budget, Saving Money > Borrowing or Savings
Expert: Gina Boykin
Date: 8/6/2008
Subject: Borrowing or Savings
Question
I have approximately $83 000.00 in my credit union savings account and I need $20 000.00 to complete my final year of University.Should I use my money or borrow from the credit union or any other financial institution?
Answer
As long as you have money remaining for emergencies (which you will), then it is a much better idea to pay cash for anything you do - including education. Why borrow when you will be paying more in interest than you will be earning in your savings account?
Sometimes we all like to borrow because when we have a large amount of cash it gives us an illusion of being wealthier than we are. Just remember that it is an illusion. If you owe as much as you have, you're broke!
Paying cash for things also makes you stop and consider the cost, and avoid being wasteful. If you borrow for your education you may spend much more than $20K because you don't really think about how much it costs until you pay it back. In fact, if you pay cash, maybe you'll find a way to spend less than $20,000.
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