Earn an A+ in handling your money at college
June 10, 2010
College days, as the saying goes, are the best days of your life. But, to make the most of those days, you may need to take a hard-nosed look at your finances. Consider these pointers. Follow your money flow. Get a handle on your current situation by keeping track of how much you spend on everything. Track your spending for two to four weeks with a notebook or Quicken. This exercise, in itself, may help you to curb expenses. Plus, you’ll be in a position to detect your spending patterns and wisely decide how to spend money on what you need, rather than what you want. If you’re spending more than you can afford, make changes.
Get a plan. Look at your financial big picture and develop a budget. List your sources of income, including scholarships, loans, money from jobs and cash from parents, as well as expenses, such as books, groceries and entertainment. At the start of each month, estimate how much money you’ll have coming in and where you need – and want – to spend it. Consider a weekly spending limit. And look ahead – if you have a hefty car insurance bill or a road trip planned, put some money aside now to help you pay for it when the time comes.
Get real. Although you can do what you want, without an endless supply of money, you can’t afford to do everything you want. That means living within your means, making choices based on what things cost and being able, at times, to say to yourself – and others – “no, I can’t afford this.” Also, be flexible. If you overspend your money on something you really want to do, then make up for it by spending less another time.
Master the art of cheap. No, you don’t have to be a cheapskate to take advantage of the cheaper things in life. For instance, free or inexpensive campus activities, such as music festivals and sporting events, and student discounts at stores, restaurants and travel companies. Plus, it’s OK to browse thrift stores, garage sales and classified ads for stuff you need, such as furniture and clothing.
Go mobile without an automobile. Consider options, such as public transportation or a bike. Car expenses, such as insurance, repairs, gas and parking, are a huge drain on the wallet.
Other miscellaneous ways to save. Learn to cook and to brown-bag healthy meals. Use your campus health center if you need to see a doctor or get prescriptions filled (these services are often free or discounted). And shop around for the best prices on your textbooks by buying them online or used. Sources: education-portal.com, bankrate.com, getrichslowly.org, thinkyourwaytowealth.com and yourcreditadvisor.com
Sources: education-portal.com, bankrate.com, getrichslowly.org, thinkyourwaytowealth.com and yourcreditadvisor.com
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