Whether you’re a returning student or heading off to college for the very first time, it’s important that you start off the new semester with a good financial plan. For most of us, college is a time for discovering new freedoms and learning to be independent. A lot of that can be fun, but a lot of it is also about learning to manage your own money without the help of your parents. Avoid adding to your student debt by following these easy management tips.
Do NOT get a credit card
If at all possible, avoid getting a credit card while in college, unless you absolutely need one. Don’t get suckered in by the special offers and one-time incentives that are advertised on commercials or mail-in ads. It’s easier to spend when you have a credit card, since you aren’t actually seeing the money leaving your hands. If you do get a credit card, put it away in a hard to reach place so that you are less tempted to use it for frivolous expenses.
Track your expenses
Keep a written track of all of your daily expenses for a month. This will help you see just exactly how much you are spending on coffee, food, transportation, entertainment, etc. Unnecessary expenses will stand out clearly. Most college students don’t realize just how much money is being drained from their wallet on little things until they see the numbers on paper. Determine what you can cut from your expenses and start planning out a budget. Usually, by simply keeping conscious track of your spending, you’ll start spending less.
Make a budget
It doesn’t have to be complicated. Just write down at the beginning of each month how much money you have available and what your necessary expense require. Set money aside for each expense and arrange to spend less than you make. This will leave you with at least a little bit of extra money each month to put into savings, investments, or extra expenses.
Plan for recreational spending
Every student needs to have fun once in a while. Whether it’s show by a favorite band or a new Xbox game, if you really want it, make room for it on your budget. The trick is setting aside the money and making sure that you keep track of it so that you make sure you still have money for the essentials.
Pay your bills on time
Incurring late bill payment fees and debt is one of the things that college students do best. Avoid this pitfall and you’ll be much ahead of the game.
Buy used books
Whether for school or for pleasure, switch to buying used books. Almost any book you need you can find used. After a year, the savings add up tremendously.
Say goodbye to your car
Owning a car is incredibly expensive. Repair costs and rising gas prices make it a liability more than an asset most of the times, so leave the car home when you go off to college. Chances are, your university has special on-campus and off-campus shuttles that will get you where you need to go, as well as public transportation passes, so take advantage of these. Learn the bus routes. After a while you might discover that you prefer living without a car.
Skip the big Spring Break
Instead of booking the trip to Cancun, spend your spring break exploring your college town. You’ll be surprised at how much there is to discover. Get involved in clubs and events happing at your college. It’s a great way to have fun and do something meaningful in local area without having to spend all the money you usually would on big vacation trips.
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