Whether you’re getting set to enroll in your first semester of college classes or going back for your master’s degree, college students have a lot to consider when it comes to their finances. College can be one of the most exciting and rewarding periods in one’s life, but with many potential sources of stress, it can begin to feel like a burden, as well.
If you have a good hold on your finances, you will help alleviate some of that potential stress. You’ll also be better prepared for life after graduation. In hopes of helping you live your best life, we’ve put together five tips to help you maintain control of your finances while in college.
Budget, budget, budget. Whether you have $5 or $500 to spend, nothing is more important than staying within your means. It’s effectively what keeps your financial ship afloat as you traverse life’s uncertain seas. So learn how to budget early. Make sure you always know your regular income and expenses. In other words, keep a log of how much money you make and how much money you owe on a regular basis for things like bills and rent. Once you do this, you’ll begin to have an idea of how much spending money you have and how much you can afford to put in savings.
Show some restraint. College can be an incredibly fun and tempting time. However, it’s important that, once you make your budget, you stand by it. You may run into a friend or acquaintance that simply has a bigger budget than you. That’s okay. It’s important for you to learn how to resist the pressure of simply going along with what others do. Sometimes a group of people may decide to go to a restaurant that you know is too expensive for your budget. That’s okay. Learn how to show some restraint and you will certainly be better for it in the long run.
Use your credit card wisely. Not every college student needs a credit card, but opening one can be a wise choice. As you may have heard before, there is “bad credit” but there is also such a thing as “good credit,” and it’s actually very important for getting loans for a car or home down the line. The best way for you to start building credit is by using a credit card responsibly. That means staying well under your credit limit and making at least your minimum payment each month.
Know where you stand with financial aid. If you’ve taken out student loans or received financial aid from the institution you are attending, make sure you stay up to date on where those payments and disbursements stand. Even in the case of scholarships, it’s important not to take them for granted. As we have said before, there is no such thing as free money. Make your payments on time and/or know your timetables for repayment once you graduate.
Shop smart. Even when you’re in college and trying your best to be frugal, you can’t avoid spending money. Whether it’s food, clothing, or supplies for your apartment or dorm room, you would be wise to learn how to comparison shop, find discounts, and buy secondhand. Though you can’t avoid buying things, you can avoid buying things that are unnecessary or extravagant.
Whether you’re a high school senior preparing for your first college experience, or a seasoned upperclassman, we hope you’ve found these tips helpful when it comes to managing your finances wisely. While you’ll no doubt learn a lot in the classes you’ll take, it’s possible that the most important thing you’ll take with you after college are the habits you establish.
The American Bankers Association offers additional tips to assist you.