Money Management Tips for College Students
It can be difficult for you to manage your money while you are in college. However, if you establish good financial habits now, then your life will be a lot easier. Father George Rutler has the following money management tips for college students.
Create a Budget
You can get your money back on track by setting a budget. A budget allows you to keep track of your spending habits. You can start your budget by writing down your basic living expenses, such as room, tuition, textbooks, board and food. If you live off campus, then you need to consider your transportation and utility costs.
The next thing that you will need to do is write down your luxury expenses, such as haircuts. You will then need to write down your income. If you find that your expenses exceed your income, then you should try to trim them. Get rid of the things that you do not need. You should also find ways to increase your income.
Use a Credit Card Wisely
A credit card is something that can make or break your personal finances. If you use your credit card wisely, then you can build up your credit. This can make it easier for you to get approved for financing. You can also get rewards by using your credit card. Furthermore, a credit card can allow you to pay for something that you may not have the cash for right away.
It is important for you to avoid accumulating credit card debt. You should pay off your bill in full each month. If that isn’t possible, then you should try to keep your credit usage below 30 percent of the total limit. For example, if your credit card limit is $1,000, then you should not let the balance exceed $300.
Open Up A Savings Account
Father George Rutler recommends that you open up a savings account. You never know when an emergency may come up, and you will be required to spend money right away. That is why you should try to save money every time that you get paid. If you find it difficult for you to save money, then you should try to reduce your expenses.
For example, if you have a meal plan, then it is a good idea for you to see if you can switch to one that is less expensive. You should also rent books instead of buying one. Additionally, if you live off campus and have to commute to campus, then you may want to walk, take public transportation or cycle.
Invest Money Now
Investing money early allows it to accumulate more interest. You can also start preparing for major life events, such as retirement. It is relatively simple for you to start making investments. You can set up an investment account and have it set to where money is automatically transferred from your bank account each month. However, it is best for you to do your research before you decide which investment is best for you to make.