Budgeting is an important part of college life, and smart spending strategies may help students save a lot of trouble while paying back student loans, or paying back debts taken from family or friends. There are many ways to spend wisely; to avoid financial mistakes, hence it is advisable to lay a solid foundation of financial training so that you can start college years on the right financial foot.
Organizing and planning your campus and personal life, living frugally, making smart choices and money making hacks can pull you through expensive college life.
Here are some practical financial tips for college students to manage money wisely:
1. Making a budget:
Make a realistic budget by including all sources of income like money provided by parents, money coming from student loans, grants or some type of financial aid, income from a job and the expenditure per month.
Expenses should include all personal, studies related and entertainment and traveling costs with a cushion for unforeseen or miscellaneous expenses.
Differentiating between ‘needs’ and ‘wants’ can help you stay within budget. Review your budget every month to keep track of your finances, keep all your bills and receipts so that you can analyze your spending history.
Moreover, evaluate and re-calculate where you can save and make adjustments every month especially when there are dramatic financial shifts in your life.
Though it may be difficult to stick to a budget, however, disciplined you are and may overspend from time to time, get back on track as soon as possible.
2. Money management techniques:
Join a credit union after proper survey, open a savings bank account. Pay all utility bills on time to avoid penalties, pay cash for small expenses, and Do Not get a credit card unless absolutely necessary.
If using a debit card, make sure to turn off the overdraft facility to avoid overspending. Use online banking services to transfer money or use mobile deposit.
Money management has become easier and convenient by using apps for keeping track of expenses and bank account statements.
Keep looking for student deals- restaurants, local attractions, retailers, and facilities near the college campus all offer discounts that can save a lot of money. Pay in cash whenever possible so as to avoid making unnecessary purchases.
Protect your personal information to avoid identity theft, do not leave documents lying around, never provide your passwords even to friends or social security numbers unnecessarily.
3. Minimizing debts:
While living on a student loan, it is prudent to minimize expenses and used only for the essentials like lodging, meals, and tuitions fees. Even though you may be tempted to spend on luxuries, social outings, and vacations, caution should be taken that the amount borrowed should commensurate with the job opportunity that may be available after graduating, because loans can become a serious problem later on.
Learn to fund extra expenses with a part-time job, work-study positions, rather than student loans for an occasional splurge.
If possible, students should try to spend less and save; to help pay for student debts or invest in a profitable way, this can be a blessing in disguise when it comes to long-term strategy.
4. Scrutinizing personal expenses:
Keep healthy by cooking your own food instead of eating out and make sensible food choices. Do not indulge in smoking, consuming alcohol and drugs.
Sell used items like clothing, tech items and furniture not in use; split expenditures with friends to minimalize costs of occasional eating out or fun activities. Shop at thrift stores or attend garage sales for cheap buys instead of brand items like food, clothes, and accessories. Do not make impulse purchases.
5. Be disciplined on the campus:
Buy used textbooks or borrow them from friends to save money. You can even sell out your used textbooks and notes to make some money.
Attend classes and stay busy and involved by joining activity clubs like photography, debating, attend campus social events, movie nights etc. Stay active by availing the gym, join a sports team and pool facility on the campus.
Walk, ride a bicycle instead of keeping a car. Maintaining, insuring and registering a car can be expensive.
Stay connected with nature and instead of going on expensive trips, plan a hiking or camping excursion.
If you have a talent t like tutoring a foreign language or math, have a way with repairing electronic stuff or car repairing, it can fetch you a decent amount.
College days are to be enjoyed and remembered. You, too, can make your time memorable by planning ahead of time sensibly.
Ronald Mccarthy has been known to write regularly on the top trends in Finance and Marketing and takes particular interest in the Finance industry. His pieces are well-researched giving the reader a quick and comprehensive Knowledge. Find him on twitter.com and Facebook.com