Money Management For College Students

Money management for college students is possible with a budget and a spending plan that limits expenditures to necessities and strictly curbs entertainment expenses. Some students start out with a certain amount for a specific period of time but they do not have a plan on how to set back a little of that for later on. All income sources should be taken into consideration and all expenses should be as well. If these funds are budgeted out then there is a much greater possibility that an individual will have enough to last until the next semester or even later. Money management for college students involves making smart decisions on using credit cards, limiting amounts that go for entertainment, and not spending a lot on eating out. "So shall the knowledge of wisdom be unto thy soul: when thou hast found it, then there shall be a reward, and thy expectation shall not be cut off" (Proverbs 24:14).

Some important tips that can help students save include sharing expenses with a roommate, purchasing used books for school instead of new ones, and consider getting a part-time job on the weekends. Money management for college students should include innovative ways to save or cut expenses. Clipping coupons, buying store brands, and sharing transportation costs with others are some ways to avoid overspending. Opening a student checking account that is free will save with bank costs. Limiting purchases on credit cards can save a lot now and in the future because doing so will keep the monthly payment down and interest charges to a minimum. In addition, an individual who is working on her education needs to consider the importance of priorities.

Getting one's ducks in a row is necessary when trying to be responsible with cash. Money management for college students should be focused on a list of priorities. The most important priorities are going to be living expenses, food expenses, books and school supplies, and transportation expenses. To be responsible with cash means not eating out everyday and being willing to find inexpensive ways to have fun during off times. Entertainment expenses can really take a chunk of cash unless innovative ways are found to avoid spending. Instead of going to the movie theater consider renting movies and watching them several times. Other students might be interested in sharing movie rental expense so the cost for each person turns out to be minimal but everyone gets to enjoy it. The same thing can be done with the snacks. If everyone involved in the entertainment will share the expense it can be minimal for each one.

To keep track of all expenses an individual should find a way to keep up with every receipt. Then the receipts can be written down in a notebook so a person can easily see where her funds are going. Money management for college students can be helped by keeping track of all expenses no matter how small. A folder with pockets or a notebook with pockets will provide a place to store the receipts and a place to write down the expenditures. Keeping track of every receipt allows an individual to track where all of her funds are going. Most people do not realize that the small daily purchases can add up to as much as a cell phone bill or the cash to fill up the car with fuel.

Rising fuel costs have made all consumers evaluate their finances more closely. There has to be adjustments when expenses go up. People who were budgeting for fuel have had to cut back somewhere else in order to have transportation. Money management for college students is an ongoing process that takes reevaluating frequently. Students who do not have a car of their own will still have to pay cab fare or bus fare. These types of costs have increased because of rising fuel costs as well. Individuals in college who do have cars need to be extremely careful to budget enough for fuel, oil changes, and insurance. Individuals who purchase fuel with credit cards should consider only using cash because of interest.

Using credit cards to make purchases can really get a person into trouble especially when used on impulse without considering the consequences. The consequences of using credit cards to buy things can cause financial problems for years ahead. Not paying the balance in full each month will mean paying high interest on the balance. Making the minimum payments each month will not pay much more than the interest. Of course if the account has a low interest rate it will not be as bad but any interest can result in making payments for years on purchases made now. Money management for college students involves being smart when using credit cards and if you can not then it is best to not use them at all.

When taking classes in college an individual should seriously consider taking a financial planning class or go talk to a financial counselor about money management for college students. A financial counselor can assist with preparing a budget, helping an individual to understand about borrowing money or using revolving credit, the damage that spending recklessly can cause, and how to work out a plan to be able to save and maybe even invest for the future. Saving for the future would be idea especially after graduating when the time comes to pay payments on student loans. More information can be found online about financial tips while in college.

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