Managing money is one of the most challenges a college student usually face, especially those student that their parent do not nurture well in terms of management. Those students tends to use up all the money that is being send to him/her monthly or weekly. It might even get to an extent where that student will also borrow from friends when the money is no more sufficient. Such a
students find it hard to survive in school with spending money.
Have it at the back of your mind that something might happen one day, that someday, the money might not be buoyant for your parent to be giving you all the time. Some students spend money buying so many unwanted things. Your life might be packed with shopping, gathering textbooks, and packing up entire rooms. And while picking out the perfect dorm decor might seem important, don’t neglect the deeper subjects.
Many are navigating a new campus environment, social circles and how to live independently for the first time. College is synonymous with young people assuming a greater responsibility for managing their own money – away from the reliable security of parent's wallet.
Sometimes, I used to put the blame on the parents for not teaching their child(ren) how to manage. Now is the time to talk to your child about personal finance. As a parent, you have the opportunity and obligation to prep your child on budgeting and smart spending strategies before he or she hits campus.
College is an expensive experience that becomes pricier with poor spending practices. By passing on a few words of wisdom, you can give your child the tools he or she needs to start college on the right financial foot.
For you as a student, if you’re encountering any financial difficulties, seek guidance as soon as possible. It’s usually easier to fix things the sooner you deal with them.
Below are easy tips that will help college students make the grade when it comes to forming a strong foundation for money management.
1. Create a Budget
This particular point is very important and must be treated with care. Sometimes the most useful advice is also the least exciting: set a budget. Once you determine your expected income versus your expected expenditure, it’s easy to plan for what’s left – or seek help if there’s going to be a shortfall. It doesn’t have to be fancy. At the start of the month, estimate how much money you’ll receive and decide where needs to go. Remember: you don’t need to spend it all.
2. Manage Termly Payments
Many college students find it difficult to budget because their loan and grant payments are made each term, whereas bills are often due monthly or weekly. This can often result in money running out towards the end of term.
You can manage this by transferring your loan and grant payments into a savings account, then making monthly or weekly payments into your current account. This helps ensure you’re keeping money aside for later in the term, and you may even make a little bit of interest on your savings along the way.
3. Save Your Receipts.
Keeping your receipts can be one of the way to know how often you spend. Put them in a shoebox under your bed if you must, but hold onto them. You’ll need to be able to compare them with statements at the end of the month. And some you’ll need to keep for several years.
4. Set Financial Limits
For parents, One way to help your child curb first-year spending is to propose financial limits for unnecessary items. Setting a spending limit doesn’t necessarily prevent your child from making impulse purchases, but it should give him or her pause to assess whether or not the new item is really necessary.
For students, you can set your financial limits by always putting down the necessary items you need, for example, if want to go for shopping, list down the needed items and the estimated prices. When shopping, avoid buying the one that is not in that your shopping list.
5. Buy Used Textbooks.
Funny enough, the textbook is the budget-breaker of college students everywhere. It can ruin your plan of saving especially when your lecturer come up with selling of his/her handouts. It’s true that some professors change and update texts practically every year, the vast majority use the same textbooks year after year. That means you shouldn’t have to shell out hundreds to shop for books before class.
There are lots of ways a student can save money on college textbooks, such as searching for posts on campus bulletins, or shopping online such as Amazon. Luckily, many free textbooks are online for downloading. You can just search for the one you need and download it.
When the school year is done, sell used textbooks to others who need them the following semester. School bookstores, online book retailers, and social media sites are all good places to advertise textbooks for sale. From there, you can recover some amount you spent when buying it.
6. Avoid Hanging Out With Big Spenders.
As we all know, there are some kids that their parents are buoyant enough to give them huge amount of money. Other kids are well down the road to financial trouble. Hanging out with them can make you to spend what you don't wish to spend on before. It can lead you to spend more than you can afford.
7. Be careful With Credit Cards
If going to college is like setting sail in a vast ocean, then credit card companies are the sharks. They specifically prey on new and inexperienced college students, banking on the notion that students are strapped for cash and excited about the prospect of “easy” money. If possible, don’t get a credit card unless you absolutely need one. Don’t be a sucker.
8. Consider How To Increase Your Income
Think of the way to generate income to increase the fund you are entitled to. Don't rely on only the money your parent are giving you. Engage yourself in one business or another. For your business suggestions, you can read my previous post on some Money Yielding Business That You Can Start With Little Capital.
As a student, you can also choose to work a part-employment. The majority of students in further and higher education work part-time during term to support their studies. Many universities have a job shop or employment service catering specifically for students to help you find work. Also, check your students' union to see if they have any jobs available in their shops or bars.
Conclusion: "If you wish to get rich, save what you get. A fool can earn money; but it takes a wise man to save and dispose of it to his own advantage." -- Brigham Young
Learn how to save and manage Today!!!!
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