August 12, 2021
When you first enter college, it can be hard to juggle your own finances since it’s your first time on your own. You’ve received a loan and you’ve opened up a checking and savings account. But, you’re not quite sure how to manage your money through the school year. Here are a few tips to help you get started on money management.
Leaning how to budget is the first step to managing your own finances. Be aware of how much money comes in and goes out as well as how it is spent. There are plenty of budgeting methods out there that you can look up, see which one suits your habits the best. Even if your parents are supporting you, you should still factor that in while you’re learning how to budget. Budgeting trains you to prioritize spending on and to gain self-control to separate out your needs and wants.
Even if your parents are giving you a full ride through college, you should get a job to earn some extra spending or savings dollars. This will also help build your resume and work experience.. College can be an extra fun experience when you can afford to go out with your friends. Even a couple times a month would help you not get burnt out between school and jobs.
College is the time to build credit. You should apply for a credit card as soon as you can and start building. The earlier you start the better. Building credit is an investment for your future especially in terms of loans if you ever plan on purchase a house or a car. Naturally, without self-control, credit cards can also be destructive. It can be easy to spend more as it does not come out of your account immediately. However, one missed monthly payment can be the downfall of your credit score. You can prevent this by only using your credit card for necessities within your budget. That way, you can be sure you can afford to pay off your credit card bill.
If you are battling student debt through college, remember not to dismiss it so quickly as a future problem. Give some thought to how you are planning to pay off your debts. This process is different for everyone but still research how much your estimated salary is expected to be once you’re out of college or how much you’re getting paid now. Ideally, your plan should be realistic and work best on your own timeline.
It can be difficult to try and figure out your own finances when you’re off on your own for the first time. Reach out to relatives and friends and listen to what worked best for them, and they might be able to offer some advice on juggling finances. The internet is also a great place to find different ways to handle your money.