Five Tips for College Students to Manage their Finances

tips for managing your money

College is over, the batch of 2020 have graduated and they start their journey into the real world into a world where money matters. Earning money is equivalent to happiness, in turn-key to surviving in this world. Hence one needs to be smart about their finances and where they invest their money. This sort of education is essential. Individuals need to learn how to manage their own money and learn to invest, as well.  

In schools and colleges, this sort of knowledge is given only to ones with a business background. But, the need for this sort of training is an essential tool for an individual in every field. Everyone needs to possess a certain necessary amount of knowledge about their taxes, finances, and investment. 

The first step towards investing and filing taxes is to understand your money and be accountable and responsible. To do so, one needs to learn to finance their cash personally. 

Five tips for managing your money

  1. Manage and formulate a Budget 

Once you start earning, your money is your responsibility. If you make $1000, and you know how much you need to pay for your rent, food, transportation, essential utilities, loans, insurance, entertainment, and luxury items, and after all this spending also remember you have to save some amount of money. Many ask what the point of saving is: it acts as a source of emergency money, and if you keep spending the entire $1000, you would not be able to afford things in the long run. 

  1.  Monitoring of Credit 

As a college student, you are in debt, and you need to save money to pay the loan. Hence you need to monitor your credit as the credit acts as a score sheet, if you do not pay your dues on time, then your score decreases, and you would not be liable for a loan. Hence restrict the usage of credit card if you aren’t able to clear your dues. 

  1. Keep a check on your Student Loan. 

Remember that you have an impending student loan that you need to clear. If you aren’t able to pay the mortgage for some reason, there are different options that you should know.

  1. The priority of your money 

Prioritize where your money goes, prioritize paying your loan over luxury items, or save for the future by not buying more than you need. Emergency saving is vital, as you prepare yourself for the worst outcomes. 

  1. Make Saving Fun 

All this seems like a party popper, but you can make this fun and keep yourself aware. For starters, you can start cooking your food, have days where you stay back and entertain yourself at home, look out for deals and lastly, focus on free entertainment such as hiking or public libraries. 

Final Thought 

It might all seem very intimidating, but as you start inculcating this habit, it will come naturally to you, and you will be able to be tension free. Make your financial goals clear to you, and it’s okay to make mistakes but also remember you are responsible for your money.