Budgeting Tips for College Students
College students face a lot of financial trouble as they are usually not taught about saving money efficiently. Forget budgeting; some students have a hard time managing their credit card debts, mounting student debt and more. Here we take a look at the best financial practices a student can perform.
Find affordable housing
The first and most important thing to do is make sure that you have housing that is within your means. Many companies such as Urbanests offer affordable housing options for students who are happy to share their space and has the added bonus of coming furnished. Once you have decided on your housing, you can then look at how much money remains for you to create a budget.
Setting up a budget
The basics of budgeting come with the record of every income source and potential expenses we might incur. Being a student, your income sources are limited to parental allowances and part-time jobs. Meanwhile, you are bound to come across a lot of expenses you have not hoped for.
But you must try to identify impending expenses in advance. Furthermore, it is better for you should include recurring costs like personal care items, school supplies, laundries, etc. For example, a simple search of “available internet in my area” can provide you with a list of providers, allowing you to find the cheapest one available. Afterward, you can manage the finance through traditional techniques or by your mobile application. If you really want to save cash, try using products that are long-lasting or even permanent to avoid these recurring costs. At Get Shave Advice they recommend buying safety razors or straight razors so you don’t have to keep spending on disposables.
College students are often confused between their needs and wants. Although, it is difficult to identify priorities yet a person inclined towards budgeting must go through the process. Ask yourself- are weekend parties worth it? Do you want to spend $30 on gas every week? You will get help by tracking your spending habits over some time.
Invest your money into things that create value in your life instead of being tools of killing time. If you can witness the thin line between wants and needs, then half of your problems will be sorted.
Avail banking opportunities
Generally, banks entertain college students by eliminating fees on fund transfers and withdrawals. It is better to opt for a bank that has an ATM nearby so that you can avoid out-of-network charges. The account will not only help you save money but will also prevent you from unnecessary splurging.
Use credit cards smartly
Credit card abuse is a common practice that leads to a never-ending debt loop. Majority of students have a credit card that makes them susceptible to futile expenses. College is a crucial time for credit building, but one has to keep a distance from overextending. You will come across numerous situations to use your credit card but keep in mind that it is a short term disguised financial solution.
Keep check of the student loan
Student loan has been the biggest problem that can affect the whole life of any debt receiver. The ever-growing student loan payments mixed with declining wages is a recipe for failure. Make sure to expect the size of your loan by graduation and develop a plan to pay it back. Even if it involves working extra hours, the result will be worth it. Also, try researching for lenders that offer affordable rates in student loan refinancing in advance so you can prepare as early as possible if you’re looking to explore this option.
Any new book can cost you hundreds of dollars, but if you move on to read the digital versions, then it would become a win-win situation. You can even grab a book from used bookstores instead of buying a new one.
Thus, budgeting in college is a strict process that requires dedication and consistency. All in all, if you save even small amounts of money the budgeting habit will help you throughout life.Infographic Provided By Trinity Christian College