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Most of the financial problems young adults face today are due to a general lack of early financial literacy. Learning how to save money, spend money, avoid financial recklessness and be entirely frugal as a college student and also learning how to make money while in college is necessary to one’s ability to manage finances throughout one’s college years and even beyond.
In this article, we have put together a few smart financial tips to help keep college students in good financial shape:
- Create a Smart Budget: as a college student, you now must estimate your expenses and determine the amount of money that comes your way from all sources like parents, relatives, friends, financial aid, scholarship, or any income from your own efforts.
- Keep Track of Your Spending Patterns: develop a self-check accounting routine of keeping careful records of your money. Regularly look at what you’ve been spending your money on and see where you can make cuts or spend more wisely. Watch how you spend and increase your saving rate by cutting unnecessary expenses so that your money can last you through the semester.
- Open a Student Savings Account: Warren Buffet once said, “Do not save what is left over after spending but spend what is left over after saving.” After putting your budget in place, you need to identify areas where you may be able to spend less and save more especially toward longer-term goals you may have.
- Give Financial Planning and Investment Apps a Try: Check out a few financial apps online just to understand how they work. Understanding how some of these apps work, it’ll help you sort through different financial management techniques and find the one that’s best for you.
- Get a Side Gig if you can: Getting a good college job or side business will make it easier for you to begin to understand how money works and how to properly manage it. You also begin to gain work and business experience while in school.
- Resist Impulse Buys ‘Differentiate Between Your Needs & Wants’: Don’t make buying decisions on the spot without thinking carefully about the consequences. Whenever you do have to spend money on a ‘want,’ check your budget first and see if you can afford it. You save more money by buying only what you need and it also gives you more flexibility in your budget in the long run.
- Reach out for financial aid when necessary: lookout for students discount, scholarships, or college loans that may be available on your campus. However, treat student loans as a last resort. Don’t be afraid to reach out to those around you for help when you’re in a dire need of support. Let your family or relatives know. Ask them to see how they can be of help to you.