The origin of 'squander' is obscure, with no clear lineage to Proto-Indo-European, Latin, or Greek roots. It emerged in English around the 1590s, possibly as a dialectal word or a slang term that gained wider usage. Scholars have suggested potential but unproven connections, such as a blend of 'scatter' and 'wander', or an influence from Swedish 'skvandra' (to be wordy, to gossip). Despite its mysterious beginnings, the word's meaning has remained consistently focused on the concept of wasteful and irresponsible dispersion, capturing a specific and vivid sense of loss through negligence.

The word 'squander' is of unknown origin, first appearing in English in the late 16th century. It is not reliably divisible into meaningful morphemes based on its current English spelling.