How to Manage Your Money as a College Student?

Answer 1

It’s not always easy to manage money; especially for college students. Many college students spend money on unnecessary things and end up falling into debt at a young age. However, with the proper planning and money management skills, college students can learn how to properly manage their money. Read on for helpful tips on how to manage your money as a college student.

Create a Budget

The first step to managing your money as a college student is to create a budget listing your sources of income and expenses. You may create your budget on paper; or you can use a software program like Microsoft Excel to prepare your budget. When creating your budget, be sure to list all sources of income that you currently receive each month, semester or quarter that you are enrolled in college (e.g. financial aid, scholarships, monetary contributions from parents, income from a job). Next, list all of your expenses including housing, tuition, food, transportation costs and other bills. Overall a budget is a helpful tool that can help you keep track of your finances and spending habits over a period of time.

Open a Savings Account

Another important financial tool that can help you manage your money is a savings account. You can set aside a portion of your income each month to deposit into your savings account for emergencies (such as unexpected medical bills, or car repairs). It is up to you to decide how much money you can afford to save on a monthly basis. However, you should be consistent with your deposits and do not withdraw any money from your savings account unless you absolutely must do so.

Live Within Your Means

Since you are a college student, your income may be somewhat limited. So, it is important to realize that you may not have the extra money to go on a shopping spree every week, or take a vacation every few months. Basically, when you live within your means you do not spend more money than you earn. Although it may be tempting to eat at fancy restaurants and wear expensive clothing, it is important to stay focused on your priorities and do not accumulate an excessive amount of debt while you are in college. Please keep in mind that if you apply for student loans and student credit cards, you are required to repay that debt. So, try to avoid racking up thousands of dollars in unnecessary debt. That is why you should have a savings account for unexpected emergencies, so you don’t have to depend on credit cards, loans or spending your bill money to cover those emergency expenses. Once you learn how to properly live within your means, you will do yourself a favor in the long run.

Learning how to properly manage your money as a college student may take a little time and effort. However, if you create an accurate budget of your income and expenses, set aside money for your savings each month and live within your means, you should have no problem managing your money.