Money Management For College Students
Money management for college students is possible with a budget and a spending plan that limits expenditures to necessities and strictly curbs entertainment expenses. Some students start out with a certain amount for a specific period of time but they do not have a plan on how to set back a little of that for later on. All income sources should be taken into consideration and all expenses should be as well. If these funds are budgeted out then there is a much greater possibility that an individual will have enough to last until the next semester or even later. Money management for college students involves making smart decisions on using credit cards, limiting amounts that go for entertainment, and not spending a lot on eating out. "So shall the knowledge of wisdom be unto thy soul: when thou hast found it, then there shall be a reward, and thy expectation shall not be cut off" (Proverbs 24:14).
Some important tips that can help students save include sharing expenses with a roommate, purchasing used books for school instead of new ones, and consider getting a part-time job on the weekends. Money management for college students should include innovative ways to save or cut expenses. Clipping coupons, buying store brands, and sharing transportation costs with others are some ways to avoid overspending. Opening a student checking account that is free will save with bank costs. Limiting purchases on credit cards can save a lot now and in the future because doing so will keep the monthly payment down and interest charges to a minimum. In addition, an individual who is working on her education needs to consider the importance of priorities.
Getting one's ducks in a row is necessary when trying to be responsible with cash. Money management for college students should be focused on a list of priorities. The most important priorities are going to be living expenses, food expenses, books and school supplies, and transportation expenses. To be responsible with cash means not eating out everyday and being willing to find inexpensive ways to have fun during off times. Entertainment expenses can really take a chunk of cash unless innovative ways are found to avoid spending. Instead of going to the movie theater consider renting movies and watching them several times. Other students might be interested in sharing movie rental expense so the cost for each person turns out to be minimal but everyone gets to enjoy it. The same thing can be done with the snacks. If everyone involved in the entertainment will share the expense it can be minimal for each one.
To keep track of all expenses an individual should find a way to keep up with every receipt. Then the receipts can be written down in a notebook so a person can easily see where her funds are going. Money management for college students can be helped by keeping track of all expenses no matter how small. A folder with pockets or a notebook with pockets will provide a place to store the receipts and a place to write down the expenditures. Keeping track of every receipt allows an individual to track where all of her funds are going. Most people do not realize that the small daily purchases can add up to as much as a cell phone bill or the cash to fill up the car with fuel.
Rising fuel costs have made all consumers evaluate their finances more closely. There has to be adjustments when expenses go up. People who were budgeting for fuel have had to cut back somewhere else in order to have transportation. Money management for college students is an ongoing process that takes reevaluating frequently. Students who do not have a car of their own will still have to pay cab fare or bus fare. These types of costs have increased because of rising fuel costs as well. Individuals in college who do have cars need to be extremely careful to budget enough for fuel, oil changes, and insurance. Individuals who purchase fuel with credit cards should consider only using cash because of interest.
Using credit cards to make purchases can really get a person into trouble especially when used on impulse without considering the consequences. The consequences of using credit cards to buy things can cause financial problems for years ahead. Not paying the balance in full each month will mean paying high interest on the balance. Making the minimum payments each month will not pay much more than the interest. Of course if the account has a low interest rate it will not be as bad but any interest can result in making payments for years on purchases made now. Money management for college students involves being smart when using credit cards and if you can not then it is best to not use them at all.
When taking classes in college an individual should seriously consider taking a financial planning class or go talk to a financial counselor about money management for college students. A financial counselor can assist with preparing a budget, helping an individual to understand about borrowing money or using revolving credit, the damage that spending recklessly can cause, and how to work out a plan to be able to save and maybe even invest for the future. Saving for the future would be idea especially after graduating when the time comes to pay payments on student loans. More information can be found online about financial tips while in college.
Money Management ClassesWith money management classes around every corner, obtaining financial success becomes easier. The internet is a haven of articles and self-help methods for gaining economic freedom. Financial companies and financial management companies are everywhere. These companies not only help teach but help a person manage their money and learn how to invest for the future. Colleges are offering financial planning classes along with other life skills. Churches, civic groups, and social service organizations have also begun offering money management classes and life skills development. The classes offered are mainly for adults, but some business and organizations have begun to offer financial planning to junior and senior high school students as well. Depending on the business, college, or organization offering the class and the class offered will determine if a fee is involved or not.
The courses taught in money management classes will vary in topic depending on who is offering the course and where the group is located. A group of high school students and adults located at an inner-city mission will learn different financial information than a group of people in rich suburbia. The group at the mission will focus on saving and earning money and budgeting topics. The people in rich suburbia will learn about various stock options, investment strategies, and such. The topics covered will be relevant to the area. That said, the group at the mission might also take classes on investments and such but most often, the concern is for the moment and getting through another day. Those at the mission may feel learning about investing, when providing tomorrows meal is unsure, to be a waste of time.
Local two-year colleges offer money management classes. Some of the classes covered are on obtaining mortgages and financing, opening secure banking accounts with a checking and savings, monitoring a persons credit score, other loans, the basics in investing like stocks and bonds, budgeting, preventing credit theft, and teaching on making plans for the future. The topics covered under future planning include education and retirement. A person is never too young to begin preparing for retirement. Subject matters under planning for retirement might include IRAs, investing, developing retirement accounts, stock options, real estate, risk protection, and more. Budgeting is tough for many individuals. Determining a budget may not be the issue but keeping in line with the developed plan often is. Money management classes can help a person develop a budget. The skills covered will include logging each expense in a month, from a cup of coffee or gum to gas in the vehicle and electricity bill.
Some states require high schools to have money management classes and other life skills courses. Schools want their students to learn about spending, budgeting, writing checks, understanding credit, and planning. Arguments ensue around this topic. Those schools that encourage finance courses say that students need to prepare for the future and that learning about finances, budgeting, and banking is an important lesson to learn. The argument used by some states is that teaching about financial lessons is not a teachers job but a parents. Concern occurs because students already have a full plate with learning and school activities. Some school boards are concerned that adding these types of life courses could be too overwhelming for already overwhelmed students. Schools also dispute that high school is preparation for college not for life.
Social service organizations require participants in their programs to take and complete a variety of money management classes and various life skills programs. The service assesses the individual and determines what the individual needs. Many people needing assistance from social service agencies struggle with mismanaging the finances her or she has. The hope for many organizations is that a person can gain insight, pay attention to his or her finances, and thus, take control of their life. Social service organizations offer courses in budgeting, opening up savings and checking accounts, learning about credit reports, and how to manage and even reduce debt. The first course usually offered is helping a person develop a budget. Individuals seeking assistance from social service agencies usually have a very limited income. Often times, people have enough money but poor choices are made because the person cannot see light at the end of the tunnel. Many individuals look at his or her income versus the expenses and do not see how the ends will meet. Sometimes just sitting down with an individual and working out the specifics allows the clients finances to be straightened out.
Churches are now taking an active part in the community by offering various life skills sessions, including money management classes. The theme is people helping people and a large number of participants become involved in the process. The idea is that someone blessed with a gift and talent can bless someone who is lacking that specific skill. And God hath set some in the church, first apostles, secondarily prophets, thirdly teachers, after that miracles, then gifts of healings, helps, governments, diversities of tongues (1 Corinthians 12:28). Various members from the community offer skills to others such as some of the following and then some: cooking, sewing, food shopping, budgeting, building, a trade, home repair, and job skills. Financial experts talk to the community and offer suggestions about how best to serve others. Individuals needing help can get free basic life necessities, like food and clothes, and receive skills useful for his or her life and family. Cost saving methods also becomes a focus. Families learn how to budget, how to use coupons, how to reduce their food bill by learning homemade secrets, and how to cut down on spending for gifts and entertainment by being creative.