Most college students know nothing about money, which could affect them greatly in the long run. Everyone should learn the art of money management and this includes college students. Money management could be overwhelming, and maintaining proper management might be even more difficult when you are a college student. However, it is not impossible.
College helps a lot of people to learn how to live independently for the first time ever, especially for students going to college straight from high school. It also helps them assume greater responsibility, including managing their own money. Student loans and collecting debt can also happen during your college years, so learning how to handle debt is important.
Here are a few money management tips for college students:
1. Set up a checking account
The first thing a college student can do to manage their money is to set up a checking account. While some checking accounts have fees, look for banks and checking accounts that are made for college students. This can exempt them from paying certain fees when they withdraw or transfer funds. They should also ensure they settle for a bank that has an ATM close to them so they don’t have to pay out-of-network charges.
2. Build good credit
After setting up a checking account, college students need to start working on building good credit as soon as possible. This will help them save a lot of money in the long run and stabilize their finances in the future. College students should be constantly reminded of how making timely payments on bills can help them build good credit over time. This will, in turn, make it easier for them to secure affordable car loans and even get lower interest rates on their credit cards. They can also get a better mortgage loan when they are ready for one.
3. Beware of identity theft
College students should do everything they can to avoid identity theft by maintaining online privacy. They should keep an eye on their bank statements and learn to keep their personal information private. An easy way to do this is by always shredding papers that may include personal details are no longer useful, and also avoid sharing passwords and pins with anyone.
4. Minimize student debt
Student debt can be a huge challenge for college students but can also be minimized or avoided. One of the ways to go about this is by spending on the right things and avoiding excesses as much as they can. A college student should avoid using financial aid to fund unnecessary things. If they take a loan at all, it should be for valid things like tuition, books, housing, and food. It should not be used for pizza nights or social outings. College students should also learn to borrow only what is required and not just to fund an extravagant lifestyle. Students can also get a side job that will help them fund extras, so they won’t have to extend payments that could as well be cleared off now.
5. Set financial limits
Setting financial limits is a great way to help curb how much is spent per time period. Every college student should embrace this habit, as it will help them weigh their expenses and know which to prioritize and to ignore.
6. Use online services
Online services are the best go-to option for a college student looking to manage their money. An online finance service or smartphone app, like Mint, can make it easier for them to track their expenses. The student can also set up online banking services to help transfer money easily via the internet.
College students are encouraged to learn how to manage their money early in life. This will have a huge benefit on them in the future, and they will be able to make smart money decisions while leveraging their finances.
|Focused on providing information for anyone in need of debt relief, Jackson Maven writes a blog on debt settlement, debt consolidation, tax debt relief and student loan debt which helps to find the debt solution that fits their unique needs no matter the amount of debt they are in.|