Being in college means that you will likely be in charge of your financial affairs. Although freedom can be exciting, you must understand that the finances will be limited and the expenses overwhelming. Evidence shows that 55% of college students struggle to find financial support for a college education.
51% of college dropouts are due to financial struggles. Without the proper money management skills, you may find college either too costly or too stressful. Here are some tips on how to better control your finances.
Take control and spend responsibly
When in college, students face so many challenges that neglecting finances becomes easy. That said, you should start your adult life by being carefree about your money habits. College is the ideal point to begin taking charge of your spending habits.
Whether you will be receiving money from your parents or not, ensure to be intentional about whatever you do with the cash. Work out a financial plan at the start of each semester, and watch whatever you spend on it. From the beginning, have a deliberately articulated financial strategy.
One reason why most students struggle with money issues in college is the failure to budget. You need to determine the amount of money flowing your way from whatever sources. Record any financial input from parents, loved ones, grants, scholarships, employment, and loans. After that, you should approximate your expected expenses, including bills, books, accommodation, shopping, and entertainment.
To create a budget, enter these categories into a spreadsheet and calculate how much money you will have left after spending on the expenses. When budgeting, try to balance your costs with your income, leaving aside some funds for savings and emergencies. There are many excellent online tools to help with creating a budget.
Once you have a budget, commit to it. Spending above your budget and engaging in impulsive financial habits risks getting you into financial debt. Whenever you feel a burning desire to buy something or spend on an activity, refer back to your budget as a guide. If you need to order essay help UK, make sure to set aside some money for it in your budget.
Become more organized
Financial discipline is intentional and focused. You need to establish an economic structure, which includes opening a bank account. Take measures like getting a debit card by checking out free debit cards for teens to use, accessing an ATM, and making regular deposits to your savings account. “When choosing banks, compare rates and fees charged, as well as interest rates. Ask questions about online banking, availability of overdraft protection, and minimum balances” said Gordon Simmons Service Credit Union, one of the largest financial institutions in the United States.
Keep track of your spending
When it comes to managing finances, you need to create a routine that allows you to keep track of your spending. If possible, account for every dollar and keep careful records. Take note of whatever you payout and the amounts left in your accounts. Doing this regularly ensures that you have a clear picture of your financial wellbeing. Even if you spend some money on essay writing UK services, make sure to include it in your records.
Buy used books and sell your old ones
A considerable fraction of the money college students spend goes towards purchasing books and other study materials. Currently, the costs of some textbooks have become astronomical, putting huge dents of students’ budgets.
So, most people find it impossible to purchase new books at the start of each semester. A helpful tip is to buy used books for your courses, allowing you to make considerable savings. You can also make extra money by selling the books you are done with.
Consider automating your savings
Starting a savings culture in college sets you up nicely for financial success later in your career. At this point, putting aside some of your money every month in a savings account may seem fruitless, but it will pay nicely in the long run. If you find it hard to keep track of your savings and set money aside, you should seek an automated system. Consult your bank if you have questions on how this can be achieved.
Find creative and free avenues for fun
Going out to eat and have fun is tempting when in college, but you can avoid activities that involve spending. Be creative with your friends as you look for fun options. You could host a game night or plan to watch a movie together. Create time for fun by procuring an online essay writing service UK.
Saving money in college is essential for your financial future and comfort. Use credit wisely, and don’t take loans that you don’t need. Most importantly, learn to create and stick to a budget.