8 Must Follow Money Tips for College Students
Thursday, March 7, 2019, 6:00 AM | Leave Comment
As you step into college, you are on your way to becoming a more independent individual.
With many things in your life that you now have to decide and take charge of on your own, it’s about time that you acquire the discipline needed to be a more matured person. This is especially true when it comes to handling your finances.
If you want to make the most of your college funds and allowances, you’ll need to be more mindful of how you use your money.
Here are some tips that you will need to follow to create smarter spending decisions.
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Create a Budget
Planning how to allocate your funds for your expenditures is important. Because if you just spend your money haphazardly, sooner or later you’ll realize that you don’t have enough funds for the important stuff. Creating a budget helps you keep track of where your money should go or have gone. This way, you also get to set your mind on where your money are supposed to go and if you still have a wiggle room with your money.
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Set Up a Checking Account
Another better way for you to keep track of your expenses is by setting up a checking account. This way anytime you decide to spend money, you get to list down how much it is and what it was spent for. Also, it will be less tempting for you to spend your money. Before you write out a check, you would still have time to think twice if spending money is a good move or not.
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Make a Plan to Tackle Debt
If you ever had financial difficulties and decided to loan some money, you should figure out away to pay of your debt in the soonest possible time. Prolonging loan settlement, especially if the loan is from big financial companies would mean bigger interest accumulation and bigger amount of loan to pay off. But ultimately, the best thing to do is still to stay out of debt.
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Start Investing Now
It’s never too early to start investing your money. The simplest way for college students to dive into investing is by putting their money into mutual funds or through online investment management services. You can also look into doing a self-directed investment. College years are the perfect time when it comes to adapting the habit of investing.
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Do Homework on Loans & Financial Aid
Before diving into acquiring student loans and other educational aids, be sure look into your options first. Researching about these money-related actions is your best way to prepare on how to deal with this necessary evil. It might feel very daunting at first, but if this is the best option you’ve got, then it’s best that you at least familiarize yourself with how financial aids work.
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Shop Smart for Textbooks
One of the most important expenses you’ll have to make during college is investing in your textbooks. Brand new, they definitely will be expensive and might amount to at least $1,000. But the best move you can do before buying is to look into where to source out cheaper textbooks. First, make sure that you know what books you need. Once you have the list of the books, try checking with the higher level students if there’s anyone interested in selling their used books. You can also check online or for people selling second hand or older edition books.
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Know What Insurance You Need
There are a number of insurances that a college student should definitely have. Health insurance is definitely a must-have. If you have a car, own a house or if you are renting an apartment, you should also look into getting a car insurance, as well as a homeowner or renter’s insurance.
It might sound like these are extra expenses, but having these will definitely save you from the headache you might get if you got sick or got into a car accident or if ever something in your house needed repairs. Just make sure to look into what you need, what your options are and what are included in the coverage before signing up for any specific insurance.
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Create Saving Goals
If you have plans in the future that will require a large amount of funding, then you should start saving. Setting up a saving goal helps set up your mind and habits in terms of spending your money. By being more conscious of where your money goes and knowing that you are aiming for saving a specific amount of money, you’ll be able to plan everything and avoid unnecessary expenditures.
No matter what your financial status is at the moment, it’s never too early to start being smart when it comes to handling money. If you want to live a more comfortable life in the future, having all of your bases covered will help you prepare for a brighter, more secured, debt-free future after college.
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