Smart Borrower Center
Tools to help you borrow better
Going to college is one of the most exciting times in a person’s life. It might be the first time you live on your own, without your family looking over your shoulder every time you make a move. You’ll encounter all kinds of new experiences, meet new people and learn new things. However, it is often difficult to budget your money during your college years. Here are some tips to help you properly manage your finances.
Track your spending. One of the biggest traps college students fall into is spending too much money on food and drinks. Do you find yourself visiting the coffee shop near campus every day? Does the late-night pizza delivery guy know you by name? If so, track how much you spend on these items. You can save a lot by packing your lunch, using a meal plan, and having a coffeemaker and a travel mug in your dorm or apartment. For an entire week, write down what you spend and where you spend it, and see if you can make some changes that will leave you with more money. Of course, you don’t want to completely deprive yourself of your favorite treats, but spending more conscientiously will free up cash for other expenses.
Limit what you buy on credit. It’s easy to fall into the “buy now, pay later” trap with your credit card while you are in college. This can be dangerous, though, because it’s tempting to keep putting off the payments. Your purchases can then end up costing a lot more than their ticket price, due to the fact that credit cards usually have very high interest rates, and the charges compound every month you carry a balance. Make a commitment to charge only what you can afford to pay off at the end of each month. Otherwise, you might find yourself graduating into debt instead of financial independence.
Get a job. If you are managing your class and study schedule well, you may want to consider getting a job on or off campus. This can help you afford things that you want and need, as well as provide excellent resume boosters. If do get a job while you are in college, make debt repayment your first priority. And be sure that you don’t lose sight of your immediate goal: getting your degree.