Healthy Financial Foundation for College Students
Here's something many college students may not know.
Money management during the college years has a direct impact on the employment opportunities offered to graduates.
No matter how high your GPA is, potential employers will pass you by for another job candidate, if you have a dismal credit history.
And it's not just about excess debt hanging over your head but the message it sends of indifference and poor management skills.
No matter if you're a student enrolling for the first time or returning to complete your graduate courses, learning money management should be a top priority.
For many young people, this is the first time in their lives that they'll be on their own.
The temptation to enjoy that independence should not include borrowing to fill every desire.
Establish a Foundation By planning ahead how you'll make ends meet while enjoying your college years, you can avoid the kind of money troubles that could plague you for years to come.
A realistic, workable budget is essential - one that lists all sources of income and expected expenses.
Track all spending by writing everything down in a notebook; forming this habit will help you see spending patterns that can be changed to better manage your money.
If your expenses exceed your income, you'll need to be creative in finding ways to cut back.
Learn to be frugal by eliminating those things that you can do without and finding ways to cut on those things you must.
· Borrow (and lend to) your friends, · Combine your buying power with others by purchasing in bulk.
· Become a fan of garage sales, resale and consignment shops.
Buy used textbooks.
· Use generic and off-brand products - upwards of 25% in savings.
Smart Banking One area where loyalty may cost, not only students but Americans in general, is in banking.
Just like any other consumer product, banks vary in what they charge for their services.
By taking the time to compare, you could save hundreds of dollars in service and annual fees.
Check out the credit unions in your area - they often have the lowest fees for services.
· Stick with cash.
If at all possible, avoid getting a credit card.
This is often the first step to a long fall into debt for many people.
· Make your payments on time.
Just one or two late payments can have a negative effect on your credit history and make it more difficult to secure the credit accounts you need in the future for a home or car.
· Review you account at least monthly and report any errors immediately.
· Save a little something each month for emergencies and unexpected events.
Although these tips don't even scratch the surface of things you can do to better manage and save money, they will help you establish a firm foundation that will change your focus from uncontrolled spending to structured money management.
Money management during the college years has a direct impact on the employment opportunities offered to graduates.
No matter how high your GPA is, potential employers will pass you by for another job candidate, if you have a dismal credit history.
And it's not just about excess debt hanging over your head but the message it sends of indifference and poor management skills.
No matter if you're a student enrolling for the first time or returning to complete your graduate courses, learning money management should be a top priority.
For many young people, this is the first time in their lives that they'll be on their own.
The temptation to enjoy that independence should not include borrowing to fill every desire.
Establish a Foundation By planning ahead how you'll make ends meet while enjoying your college years, you can avoid the kind of money troubles that could plague you for years to come.
A realistic, workable budget is essential - one that lists all sources of income and expected expenses.
Track all spending by writing everything down in a notebook; forming this habit will help you see spending patterns that can be changed to better manage your money.
If your expenses exceed your income, you'll need to be creative in finding ways to cut back.
Learn to be frugal by eliminating those things that you can do without and finding ways to cut on those things you must.
· Borrow (and lend to) your friends, · Combine your buying power with others by purchasing in bulk.
· Become a fan of garage sales, resale and consignment shops.
Buy used textbooks.
· Use generic and off-brand products - upwards of 25% in savings.
Smart Banking One area where loyalty may cost, not only students but Americans in general, is in banking.
Just like any other consumer product, banks vary in what they charge for their services.
By taking the time to compare, you could save hundreds of dollars in service and annual fees.
Check out the credit unions in your area - they often have the lowest fees for services.
· Stick with cash.
If at all possible, avoid getting a credit card.
This is often the first step to a long fall into debt for many people.
· Make your payments on time.
Just one or two late payments can have a negative effect on your credit history and make it more difficult to secure the credit accounts you need in the future for a home or car.
· Review you account at least monthly and report any errors immediately.
· Save a little something each month for emergencies and unexpected events.
Although these tips don't even scratch the surface of things you can do to better manage and save money, they will help you establish a firm foundation that will change your focus from uncontrolled spending to structured money management.
