If you are like most college-students, you are broke. But broke doesn’t have to mean broken. Here are some tips to manage your finances and keep you afloat in the lean years.
1. Create and keep a budget.
Good ways to manage your finances is to create a budget before you start spending. Write down what you think your expenses will be: everything from books and tuition to clothes and trips. Hold onto your receipts. Check what you’ve spent each week against your budget. The discipline of consulting your budget regularly will help you stick to it.
2. Open a bank account.
A bank account is probably the smartest and wisest place to keep your money. Many universities have on-campus banks or credit unions that offer students affordable checking account plans. Look for banks that won’t charge you account fees or for visiting the bank. Your check register can also help you stay organized and within budget.
3. Know the difference between a "need" and a "want."
The difference between a need and a want is simple: a need is something you need to have for essential living and a want is something you desire or wish to have but do not need for essential living. So what do you need? Food, water and shelter. Beyond that, it’s probably a want. You will have plenty of time to accumulate loads of material things. This is the perfect time to live simply and eliminate extra spending on things you do not need.
4. Leave your wheels at home.
Having a car can be convenient but it is also incredibly expensive at a time when you are already stretched. Insurance, tune ups, oil changes and gas all add to the cost of owning a car. Consider investing in a bicycle or getting to know a friend on campus with a car. Your finances will be simpler without the expense of a car.
5. Don’t forget to ask for help.
Most students today qualify for financial aid. Qualification usually depends on the money your parents make. A FAFSA [1] form can tell you how much aid you qualify to receive. Grants, scholarships and loans are also forms of financial assistance. Moreover, if you find yourself in dire financial straits, go have a chat with the folks in your college financial aid office. They deal in these matters all day and probably have some great ideas for you.
Managing your finances in college doesn’t have to be difficult, and paying attention to your finances, like your college degree, will only pay dividends in the future.