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College-an educational institution or establishment, in particular.
Cash-money in coins or notes, as distinct from checks, money orders, or credit.
This is a way to save if you have large purchases coming up. You need to calculate the expected cost and divide it by how long you have until you need to purchase it.
Keep in mind that just 500$ won't always be enough for an emergency fund. You will want to have 3-6 months of living expenses set aside in your emergency fund.