Along with unexpected tests and assignments, college can be a stressful experience. Unfortunately, in addition to all these tasks, students are also concerned about managing their finances. About 52% of college students are reported to feel moderately stressed about the state of their finances. Whether your parents are handling your bills or you’re taking care of your finances all by yourself, these tips will help you make the most out of your finances.
Create a budget
Before starting college as a freshman, budgeting might be the last thing on your mind. But it is an essential thing you need to do before the school year starts. While you might not necessarily know everything to include in a budget, it should cover the most basic things, such as food bills, among many others. A budget would help you know your spending habits and help you make adjustments if the need arises. If you are unsure, you can use estimates and revise your budget once you are more settled in.
A typical budget should include your monthly income, which could come from various sources like grants, scholarships, jobs, savings, or contributions from your parents. Most colleges will take out your tuition costs and fees before sending the rest directly into your account if you are on a scholarship. Your budget should also include items you are required to purchase. These could be rent, books, cell phone service, and laundry. You should also budget for social activities like going out with friends and traveling.
Create a savings account
Many people struggle to save their money. That’s why many financial experts recommend developing a saving habit early in life. When you start earning money, you might be tempted to spend your money first on your expenses before saving the balance. However, you might run the risk of spending all your money or not being consistent with your monthly savings. What you can do is pay your bills first, take out a percentage of your income for savings, and then spend on yourself.
With your solid budget, you should pinpoint areas where you can save or spend. If you find that you’re spending too much on food, you can switch to a less expensive meal plan. If fuel is taking too much of your money, you can switch to walking, biking, or taking the campus shuttle to your classes.
Get a part-time job
In 2018, a study revealed that there were more part-time employed students than students without employment. Getting a job while studying for a degree can be a good way to gain some work experience and help you learn how to prioritize your life and earn some decent money. If you have other sources of income, the money earned from a part-time job can go into savings or cover any additional costs.
You can also discover your passion or career choice through a part-time job. It helps you understand what goes on in different jobs while developing your skills and building your work ethic.
The good thing is that there are tons of remote, part-time jobs available that are flexible for college students. You can get into writing, blogging, becoming a virtual assistant, and translation. If you’re more of a risk-taker and are more business savvy, you can get into trading as a business. The opportunities are endless.
Build your credit score
College is the perfect time to start building your credit score as it can help make life after college easier. That’s because it will factor into many things in your life, from buying a car to renting your first apartment.
If you have taken out a student loan, you can start making small payments while in school to cover the interest and build a credible repayment record. Ensure that you pay on time and borrow only what you need, as it helps build your credit.
If you already have a credit card, ensure that you use it wisely. Your newfound independence can affect how you spend. One tip to adopt is using your credit card for specific expenses like purchasing textbooks for school. Also, if you keep your purchases small and regularly pay the balance, you will avoid paying credit charges and boost your credit score.
College is fun. But it is also a place that helps you prepare for life on your own. Having a budget and living within your means while studying and having fun with friends will put you on the correct path to financial success.
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