Managing money while in college can feel overwhelming and monstrous, but that should not be the case.
College is a great time to think of your finances and learn how to manage them. As such, you can build positive financial habits that can help you achieve financial success not only in school but also for the rest of your life.
Once you’ve understood how to spend and save money, you can start focusing on bigger goals like travelling, clearing student debt, and saving money to move to a new city or for retirement.
Although college is the place to pursue your dream course and receive a quality education, it’s also a great place to learn and develop money skills, which you’ll require once you finish school.
If you make smart money choices in college, then you’ll be able to set up a strong financial foundation for your future.
In this guide, we’ve discussed various tips on how to manage money in college to help you get on the right track and ensure you’ve left college in good financial shape.
Let’s dive in!
Create a Budget
Our first tip on the list for money management for college students is creating a budget. Learning how to budget and set financial goals is crucial for all college students. You need to sit down and look at your finances. Map out your various streams of income, including income from a job and money from student grants or loans, among other types of financial aids.
Creating a budget can take most of your time, so you might end up not doing that assignment you were given earlier in the day in class. If that’s the case, seek the help of an accounting homework writing service at EduBirdie to get your assignment done on time. Who knows! You might learn one or two budgeting tips from your assignment.
Another thing to keep in mind is don’t budget for your bills alone. Remember, those Starbucks coffee you love can also add up quickly. Budget for practically everything from late-night snacks, books, supplies, eating out, going to movies, etc.
Track Your Expenses
The best way to stay on top of your finances is to know how you spend your money. Track your spending and see what you can cut off. It’s useless to create a budget if you can’t stick to it.
Use online services such as Mint to track your expenses via your phone. Or you can just use a piece of paper. If the expenses don’t match your real-world experience, then you need to fine-tune them.
Another importance of tracking your expenses is you can easily identify fraudulent charges to your account early and contact the bank to reverse them.
Control Your Spending Habits
If you’re an impulse buyer, you need to learn to exercise restraint. Begin distinguishing between your wants and needs.
You might need that expensive software for your academic work, but you don’t need a high-priced pair of running shoes. Even if whatever you’re buying will not upset your budget, don’t purchase it if you don’t need it.
And in case you have to decide between two needs, prioritize the thing you need the most. The other one can come later.
Set Up A Checking Account
Most of the banks provide students with free and saving account facilities. You can use these facilities to save on withdrawal or money transfer charges.
Find the banks that offer such facilities to college students and set up a checking account with a bank that has ATMs conveniently located in proximity to your school. So you can save on network fees.
Always prioritize saving before spending. So, if you have huge amounts of money, pay all your bills first, contribute to your savings, and then use a little on yourself.
Start Building Your Credit Score
Your credit score plays a huge role in everything, from buying a car to purchasing a home or renting an apartment. As a student, there are several ways you can build your credit score.
First, if you have any student loans, start making small payments of between $25 to $50 while still in college. Consequently, you will pay down interest and have some positive repayment on record.
Secondly, make payment in time and only borrow money when it’s necessary. Finally, be careful with your credit card debt. Don’t become one of those kids that take money from credit cards to satisfy a luxurious lifestyle.
There are other things you can do to save on your expenses, like staying clear of automated payments (Spotify or audible), cooking at home, making some extra cash. Also, always be on the lookout for student discounts and opt for free lesson books rather than purchasing them.
By incorporating these few financial tips for college students into your daily life, managing your finance will be hassle-free. These simple tricks will allow you to feel more confident in your financial situation while earning a degree.