Now that everyone is settled back into their daily routines after hopefully enjoying a wonderful holiday season, I wanted to resurface from the Alumni Alliance Newsletter an article that touched on college students spending habits.
Financial
Budgeting in College
How
do you save for a rainy day?
Well that will all depend on your spending
priorities. Often times, the college
experience is the first time that young adults experience the freedom of
spending their money at will without their parent’s direct supervision. However college is not cheap. There are many needs and wants that will
evolve while in college. Though it is human nature to act impulsively, try to
resist because spending irresponsibly comes with a cost. Shopping sprees, parties, and the latest
gadgets are all fun but not when you haven’t purchased groceries, put gas in
your vehicle, bought your books for the quarter or paid rent. I’m sure you may have heard at one point or
another that you need to stick to your budget and avoid extra expenditures that
may be more of a burden in the long run.
So how do you stick to a budget?
For starters, do you have one?
Well there’s no time like the present.
Start
with a Budget
Budgets are great tools for you to visually see what
your finances look like from week to week and month to month. You’ll want to start by writing out what your
expenses are, beginning with the most important to the least. The important expenses are what are called “The
Non negotiables.” What that means is
take care of your needs first before your wants. Deviating from taking care of the non negotiable
should not be entertained. Establishing
a sound financial regime is a way to develop ongoing responsible spending
habits. Paying your bills on time keeps
you out of many financial woes. Many
students don’t take the time to budget their money and end up with more debt
than they can handle. Obligations first,
wants later.
Credit
Cards
If you
haven’t been solicited by a credit card company yet, you may be soon. Consider going through your bank to obtain a
credit card. They can provide the best
guidance on what suits your financial situation. All you really need is one
credit card for emergencies. Just
because you are offered a new spending account at Macy’s doesn’t mean you can
afford it. Spend within your means and
you will thank yourself later!
Financial
Planning
Planning for your future starts with the
present. Get into the practice of saving
money. A savings account is a great way
to start saving. Consider saving $5
dollars per week. If you can afford to
put more away per week, do so. It may
not seem like a lot at the time but every cent adds up. Instead of splurging on going out to eat or
the movies, plan a dinner night where everyone pitches in the meal lowering the
cost on everyone’s pocket book. Instead
of spending $35-40 for a night at the movies, catch a dollar show or host a
movie night at your place. Waiting to
see the latest movie won’t really make that much of a difference. If you have vacations or tripped planned for
the future, start saving now.
When
in doubt, Ask
If you need help with managing your money and you
don’t know where to go, ask someone who is financially stable. Start with your parents. They may or may not be good with financial
planning, but they certainly can give you some practical knowledge on their own
experiences. Check with your local
financial institutions to see if they offer seminars on managing your money,
planning for the future, and credit scores.
You can also talk with your student advisor or financial aid office to
see if there are workshops offered for students on financial planning. The best time to learn how to budget your
finances is while you are young so that it becomes a lifelong practice.
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