3 Financial Wellness Tips for College Students

Oh, carefree high school days – how I long not to worry about paying a mortgage or grocery shopping or, ya know, responsibility in general. When you’re young, you don’t truly grasp how much college actually costs and how long your loans will actually haunt you for. If you’re not fortunate enough to have parents that generously pay your way, then you’re going to need a plan. The college years are some of the most influential and memorable years of your life, but coming out of those years with the heavy burden of student debt when you’re starting out your career is stressful (trust me). The best thing you can do for yourself is plan, plan, plan.

Here are 3 financial wellness tips for college students.

 

  1. Start Early. Again, you’re not always thinking about the cost of college before you start applying (lets be honest, you’re probably more concerned with who you’re going to prom with ) but you should be. One of the best ways to make money for college is to get a part-time job after school, on weekends, or even, during your summer breaks, and stock it away. If you’re under 16 years of age, there may be age restrictions on particular jobs and a time constraint on the hours you work. Doing chores (such as yard work) and babysitting is a good way to make extra cash. Open a savings account ( you have options beyond a basic savings account. Learn more about that here) and put in at the very least half of what you make. But truthfully, if you live at home and don’t have expenses, this is the perfect opportunity to save as much as you can, so I would recommend putting every. single. cent. into savings while you still can.
  2. Create a Budget. List fixed expenses like tuition, housing or rent, utilities bills, public transportation/ gas, books and supplies, and expenses that fluctuate like food. Don’t forget unexpected expenses (like if your laptop crashes or you have a medical emergency). Organize your spending on a spreadsheet or a smartphone app like, Mint.com. It’s free and easy to use. In order to maintain your budget, you’ll have to keep an eye on it. It’s up to you to be disciplined about your spending but I promise, you won’t regret being responsible. Especially when it’s going to make your future a lot smoother.
  3. Be Careful with Credit Cards. I learned an all-too-important lesson after I opened my first credit card. I used it on anything and everything, important and unnecessary. Shortly after, I lost my job, I stopped paying my bill for months. Even though I paid it off after I began working again, my credit score took a beating for a long while ( I am happy to report my credit has been in excellent standing for many years). Point is, when you open your first credit card, it’s real easy to go nuts and not think much of just paying the minimum or – in my case – nothing at all for months. Building good credit is essential when you go to buy a house or car, or even go for a job in the future. Having no credit isn’t good either, so look for a card with no annual fee, good rewards, and a reasonable interest rate, and make sure you use it responsibly.

 

 

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