Financial Management Tips For New College Students

Financial Management

Obtaining a degree is priceless, but the journey to completing a degree can be financially overwhelming. Although some college students receive scholarships and assistance from loved ones to cover school expenses, affording everyday living expenses is another story.

Being a financially-strapped student may be common, but it’s also stressful. Ultimately, college students must adopt financial management practices to help them get through the journey ahead.

Here’s a few ways to do that:

Avoid Loan And Credit Card Offers

Finance institutions and lenders know that college is expensive and can attempt to capitalize on this by offering money to cover your out-of-pocket expenses. On the surface, it might appear to be a good idea.

However, repaying loans and credit cards is nearly impossible if you don’t have regular or substantial income. You can rack up interest and late fees. Before long your credit can drop, and you’ll be on the hook for a lot of debt.

Create A Realistic Budget

The concept of creating and following a budget might be foreign to new college students, but it’s very necessary. Students can create a budget by compiling a list of all of their expenses and calculating the total. Then, you’ll need to factor in income. By weighing expenses and income against each other you can find ways to eliminate unnecessary expenses.

Once you’ve created a realistic budget, the next step is to apply it to your financial plans. While this can be challenging, utilizing resources like those offered by ONE is ideal. ONE is a bank that provides financial management tools like Pockets to make budgeting easier. You can customize Pockets to match your budget and transfer funds into the Pockets to cover your expenses. Pockets keep things organized and assist you in staying on track with your spending.

Find Ways To Cut Costs

If money is tight, finding ways to cut costs is crucial. Watch free TV and movie programs instead of paying for cable or streaming services. Walk, ride a bike, carpool, or use public transportation to avoid the cost of car ownership. Take advantage of student discounts on essential products and services. There are many ways to cut costs, but you need to be intentional about doing it in order to see the benefits.

Generate Revenue

Whether employed or not, it’s always smart to have more than one income stream for financial stability. Believe it or not, there are plenty of money-earning opportunities that won’t disrupt your studies.

You can tutor, answer surveys, write reviews, start a blog, manage social media accounts, sell photographs, design websites, get paid to play games, and so much more. As you generate extra income, you can put it into savings and accrue interest over time. If you save long enough, you may be able to use the money to secure a place of your own once you graduate.

The costs of higher education go beyond tuition. As a student, you’ll also need to cover everyday living expenses. Avoiding debt, creating a realistic budget, capitalizing on savings opportunities, and generating multiple income streams can give you the boost you need to survive college.