When it comes to finances the life of a college student is definitely getting tougher and tougher. Saving money is a necessity for most students and unfortunately, financial education is not something that is often considered by them or their parents at early age, when it is needed the most. Fortunately, it is never too late to turn around. There are always things that can be done so read on to learn how to effectively save money in college.
Keep Track Of Where Money Goes
This is one of the most important things at the end of the day since you have to be 100% sure that you understand where money is lost. It is impossible to know what to do and develop great spending habits if you get the money and you then spend it without knowing on what.
Make A Thorough Budget
Budgeting is not something that is pleasant for most college students since there are other activities of more interest. However, it is something that is going to help you a lot more than you imagine. At its basis, the main thing is to estimate monthly expenses and incomes. This may take some time in the beginning but as time passes you will be able to easily do it, control your money and have a better college life.
Avoid Abusing Credit
Whenever you visit a site that offers good financial advice you are told to be extremely careful with credit. This is even more important as a college student. When you have a credit line that you can use to easily access funds you are easily tempted to take advantage of it. Being responsible with your cards is a necessity though as you can so easily lose control of everything. Charge just the money that can be paid off every single month while saying within the budget. When you are very easily tempted, be sure that the credit card stays at home. Take only the cash that you can safely afford spending with you and it will be impossible to overspend.
Start Saving Some Money
When you do not have access to a lot of money it is very easy to end up thinking that saving is impossible. In reality, you can always save some and at the end of the month you are going to end up with something that can be put in the bank account. What is really important is to have something set up in the event something bad happens. It is always better to spend from a savings account than from a credit line. Start with as little as you can. Even $10 weekly can go a long way as time passes.
Pay Your Bills On Time
This should be a really high priority for you. When you are late your credit score goes down and you can lose control very fast. College students often find themselves in the situation in which bills are not paid because the money was there and used for something else.
- Keep score. Make sure you pay your bills on time, every time. While this may seem obvious, paying on time is a big factor in having a good credit score.
- Be a cheapskate. Many colleges offer lots of free or cheap activities on campus which will provide the opportunity to socialize without a lot of expense.
- Milk your student status. Lots of places will give you a discount simply for being a student. Look for places that offer savings when you show your student I.D.
- Extra cash. As long as you are able to manage your studies, a part-time job is a great way to earn a little extra spending money.
- Use the used. Look online or check with your college bookstore for used textbooks for classes, which can save you some money. Selling back your used books at the end of the semester could score you some extra cash. Check online or with your campus bookstore for buy-back details.