Managing Your Finances

If you’re like thousands of students in college, you don’t know exactly where all your money goes. Like most college students you will come to realize that at one point or another that your money is GONE!

To ensure that you don’t suffer the same fate, over the next few weeks jot down every amount you spend. Include snacks, meals, gas, bills, laundry, clothes, toiletries, and entertainment. Beside each item, write down whether you paid for it by cash, check or credit card. You’ll be surprised to see how much you spend on some items and how much impulse spending you do. It’s likely you’ll spot some areas where you can cut down without big sacrifices.

Then, you will know two things: how much money you have and how much money you need. Here are some first steps:

Identify your income sources. Your income can include savings, gifts, grants, financial aid and money from home, even a part-time job. If you have a scholarship or get financial aid, it should be used for academic expenses. You should list all sources of money, even if you don’t consider them to be significant.
List your fixed (expenses that stay the same) and variable expenses (expenses that change). It’s usually easy to list the fixed expenses, because you know what they are. For example, if you have a car payment, you know how much it is and when it’s due. You know how much your tuition is and when it’s due. The same is true if you rent an apartment, have car insurance and other fixed bills. The variable expenses are harder to gauge. That’s why it’s a good idea to write down everything for a few weeks. Utilities, gas and clothing are some of the larger variable expenses. Vending machines, copiers, books, film processing and toiletries are just a few variable expenses that add up quickly. And, they subtract quickly from your available money.
Decide how much money you will use each month for socializing. It is a reality for any college student that weekends are not only a time to catch up on your class-work, but also a time to relax and spend time with friends. This may include eating out, going out to movies, and other activities. Are these necessary expenses? No. But they are realistic expenses. So, figure out what portion of your available money will go towards socializing. Then stick with your plan. (Your bank account will thank you!)

Although this might seem tedious now, remember that in the long run managing your finances will pay off. As a student, school should be one of the most important things on your mind and by taking the necessary steps to ensure your finances are in order will make your college experience a much more pleasant one!

After figuring out your expenses, most likely you will find out that you spend way more than you bring in. To help you budget your money, below are a few tips that might help you save a few extra dollars.

Money Management Tips

There is nothing wrong with generic brands (store brands)—sometimes they are much better.
Eating out all the time will only put a deeper hole in your pocket—try to cut down by taking your lunch, eating on campus, and buying groceries that will last you for a while or buy in bulk.
If you have a car, organizing your errands according to proximity to each other should make a tank of gas last longer. If you really want to save your gas take public transportation.
Learn the word NO! If your friends are going out and they ask you to go and you don’t have any extra money, just politely say you can’t go out. They should understand!
It’s wise to have a savings account and deposit a regular amount on a monthly basis. Even a small amount can add up to a sizable sum over time, when you add to it consistently.
Only get what you really need. For ladies think about whether or not you really need that extra pair of shoes and for guys think about if you can wait on that new video game!

Credit Card Tips

How you manage your finances now can potentially influence your future. For instance, having bad credit can stop you from obtaining that dream job, buying that dream car, and/or getting a loan for your dream home. Here are a few suggestions that can help you start out on the right track:

Don’t overload on credit now, thinking you’ll have a good job later.
Available credit lines shouldn’t be treated as extra income. In fact, creditors often consider them as potential debt.
Don’t exceed the credit limit on your credit cards.
Yes, it does matter if you pay late “every now and then.”
Make sure you have the most economical checking account for your needs. For instance, if you write a lot of checks, you should avoid a checking account that charges you by the check.
PAY ATTENTION TO THE INTEREST RATES!
If you plan to pay off a credit card, pay off the one with the highest rate first.
Always refer back to your budget. Financial surprises are usually not good news.

Bank Account Tips

Consolidate your accounts. If you have accounts with several financial service providers, it's harder to keep your finances straight. By consolidating your accounts with one provider, you'll see your financial snapshot in one statement. Many financial institutions offer special pricing and free services when you consolidate your accounts with them.
Request a change in billing cycles. If your major bills are due at different times, look into changing your billing cycle. The goal is to set aside time, at the same time every month, to pay your bills.