Feb 4, 2013

7 Vital Tips that Can Help College-going Students in Managing Their Finances Better

Students are the future bright citizens of any country. Each year, new bright students join college and they hardly know how to manage their personal finances. If you ask them about summer camps or what fun they had during their summer, you’d get beautiful answers, which would delight you, but little do they know about their tuition fees or the text book costs. They have very rough knowledge of other expenses like electricity, phone charges, insurance, grocery, and monthly rentals too. They know their test scores, and semester marks, but they do not understand how to save money and its importance! But, when these bright students are trained, they can easily become masters in managing their finances too.

So, here are 7 resourceful tips that can help college-going students in to managing their personal finances better.

Money is Your Personal Responsibility

The first and the foremost thing that a student needs to remember is that he/she is the sole owner of the money, and it’s their responsibility to handle it carefully, rather than giving the responsibility of managing money to someone else. When students are dependent on parents, they have to know the complete expenses borne by them, and where the scholarship amount goes to.

Keep Some Money for Emergencies

Many students do not worry about their future; it’s important to set aside some money for emergencies like household expenses, sudden flight ticket to home, and medical expenses. Saving money always helps at any stage of life; initially, one can start by saving a small amount, and later on, increase it as and when possible.

Tracking the Money Flow

You need to keep a record of the expenses by writing or any online money management tool. This will help you to limit the expenses and manage your own money. Using debit card is easier and also helps you in managing your money. By tracking your money, you can save more money, which would be required for your post-graduation, and clearing the education loan, if any.

Limit Your Leisure Expenses

Try spending the least amount on entertainment. There would be many activities at your college, which would be informative and filled with fun. College is the most entertaining place since you are with your friends all the time. Instead of eating out at any restaurant, eat at your college using a meal card.

Old Books Instead Of New

New books would cost you more than old ones. Try buying books of your seniors at college or second hand books. College books are very expensive. Sometimes, ordering books online would be cheaper. So, make use of such opportunities. Used books sometimes would be in a good condition like new one.

Try Looking for Money

Money to students is available in plenty of forms; the only thing is that they have to look out for it. There are lots of discounts and scholarships available for students, and they can even do part-time jobs to generate additional money to cover up for their personal expenses.

Be Particular in Money Matters

Do not trust everyone in money matters, be it your well-wishers, friends, class mates or even sales person because money plays a vital part in everyone’s life.

Try to Ask

Every individual is in learning phase. Do not hesitate to ask for help. You can start with parents or may be the banker who can help you with money or how you make use of the opportunity. They can also help you in managing your money better.

Follow these tips and learn to manage your personal finances more efficiently.

Sherry is an investment banker. She is currently interested in trading of annuities that is similar to those handled by JG Wentworth. She is researching stuffs about it and learning them as she wants to expand the portfolio that she can offer to her clients. Follow her on Twitter @SherryRRosen

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