There’s a lot to learn when you go off to college. It’s obvious that you’ll be learning a lot in your classes, and you’ll probably learn and grow as a person, but you’ll also likely learn a lot about money. Unfortunately, many students make a mess of their financial situation before they learn the right way to do it.
Don’t let that happen to you! Take control of your money and make sure you manage it correctly in college so you can look forward to a bright financial future.
Understand How Money Transfer Services Work
It’s a rite of passage to spend at least a few years as a poor college student! That’s why money transfer services are so popular.
Money transfers are an easy way for parents to send their kids in college some money, but you have to know how they work. Many charge fees, you may not get your money right away, and you have to know how to get the cash. For example, Remitly can send money to Elektra in Mexico if you’re studying there, but you have to know where the closest Elektra is!
Getting these kinks worked out will make sure your family back home finds it easy to send you money when you need it.
Know the Difference Between a Want and a Need
Do you know the difference between a want and a need? If you don’t, you’re going to end up with an empty wallet at the end of each month.
True needs include:
- Shelter
- Food and water
- Basic healthcare and hygiene products
- Clothing
Don’t cheat! Just because you need food doesn’t mean you need the fancy gelato from the grocery store. It’s okay to treat yourself every once in a while, but as a poor college student, you need to reduce spending on wants and use what little cash you have on needs.
Don’t Fall for Credit
It’s easy to fall into the credit trap in college, especially if you’re tight on cash. It’s an easy fix, but you’re just kicking the can down the road, so to speak.
You may get what you want or need now, but you’ll end up paying a lot more in the long run. That’s because those credit cards will charge you interest.
If you do decide to have a credit card, use it for emergencies only.
Create a Budget and Stick to It
Every college student needs a budget! A lot goes into planning a budget, especially since everyone’s needs are different. Make sure you read up on what goes into a good budget, and ask your parents to help so you get it right.
When it comes to dealing with money as a college student, you have to be flexible. You’ve got a lot of learning to do too, so don’t be hard on yourself if you don’t get it right at first! Just follow these tips the best you can and you can worry less about money and worry more about your midterm exams.
