For many students, the start of college is the first time they begin thinking seriously about their financial stability. With all your newfound freedom, you might feel tempted to splurge. But a little bit of discipline now will pay off in the long run.
While there may not be one hard-and-fast rule for managing your finances, following these 10 tips can keep your bank account looking good throughout college and well into the future:
1. Go to class!
If you wind up having to retake a course, you’re paying double what you could have! Most professors weigh attendance heavily in their grading structure, so make sure you’re showing up and getting your money’s worth out of the college experience.
2. Get a part-time job.
Having an income, even a small one, during college can offset expenses. You might even be able to work on campus! See Handshake for openings.
3. Complete your FAFSA every year.
Don’t leave free money on the table. The FAFSA is the best way for financial aid offices to determine which grants and scholarships you’re eligible for.
4. Review your meal plan.
If you live in off-campus housing or a residence hall with a kitchen, learning to cook a few basic things for yourself can save you a lot of money over time (and is a good life skill).
5. Communicate with the YCP staff.
If you have an unpaid balance, work with the business office to find a solution (like a payment plan). Don’t wait for interest to build up.
6. Look for bargains.
This may seem obvious, but buying used textbooks instead of new ones or furnishing your residence hall with items from home instead of buying all new things is the smarter way to go.
7. Only borrow money when you really need it.
Interest on loans and credit card debt can build up fast. Whenever possible, try not to spend money that you don’t have.
8. Only buy things when you really need them.
Before you make a purchase, take some time to stop and think. There are very few items that can’t wait a day or two. Giving yourself some space to consider how necessary a new purchase really is can help reduce impulse buying and buyer’s remorse.
9. Save for unexpected expenses.
One way to avoid frequent borrowing is to plan ahead for emergencies. Try to put money into savings whenever possible… because life is full of surprises!
10. Examine your spending habits.
Most credit cards include app features that break down your spending by category, so you can see how much goes towards groceries, retail, automotive, healthcare, or other purchases. This can be a useful tool to better understand your spending habits and consider which areas can be more closely monitored.
Effective money management is typically a balance of smart saving and steady income. Establishing good financial habits in college can set you up for a sustainable future, so get started right away.
