You’ve left for college and you cannot wait to be on your own. Your own place, your own food choices, no parents, and plenty of partying. You’ve waited your whole life for this moment, so don’t blow the fun by going over your budget within a week. Part of being on your own is becoming fiscally responsible, and, as your mom always says, “Money doesn’t grow on trees.” Make certain to keep your personal finances on track while in college with these helpful tips.
Watch Your Spending
You have a dorm room to decorate, food to buy, and plenty of clubbing to do, but you have to have cash to do all of these things. The first place where you should curb your spending is on your personal needs. Don’t go crazy decorating your dorm room and, no, you don’t need a big screen TV. Look into your college’s food programs to see if it’s cheaper to eat in the cafeteria or buy your own food. Finally, you should have some fun, but you have to make certain you can afford to have fun. If you’re broke, don’t spend your last $20 on a night out with friends. Stay in and look for a part-time job.
Don’t Fall into Credit Card Debt
In recent years, credit card companies have faced some heat for issuing plastic to college students who then run the cards up to their max and immediately acquire additional debt above their student loans. Don’t fall into this temptation. If you need cash, a credit card isn’t the way to procure it. See if there is work you can do on campus, or ask a family member or friend to help you with your needs. If you run up a bunch of cards, you’ll destroy your credit, which will affect you when it’s time to look for a home and career upon graduation.
Save on Insurance Costs
If you have your car on campus, you can find ways to save on your auto insurance costs by working with a local insurance agent. He or she has the connections at the insurance companies to get you college student discounts on your coverage. If you carpool with your friends, you might also save on your policy premiums, not to mention money on gas and wear and tear on your car. Find an agent in your community and discuss your auto insurance needs with him or her to see if you can realize some extra cash through your premium savings.
Stash Your Savings for a Rainy Day
Remember those cash needs discussed in the first two sections? If you are smart with your money and stash away what you don’t spend, you’ll have cash for your wants and needs later on. Don’t tap into your student loans. Use what you need and set the rest aside to pay off the debt early or as an emergency nest egg. It’s tempting to spend any overage on your wants, but you’ll only end up regretting it in the end.
Don’t graduate from college deep in debt. It’s no way to start your new life or career. Watch your spending, save money on your insurance needs, and set aside what you don’t spend. Be fiscally responsible now, and you’ll be much happier later.
