If you’re a college student and are struggling with money management, look no further.
Money management for college students is all about making do with what you have and avoiding loans. Most students borrow tens of thousands of dollars, so you must start chipping away at the debt while saving for other expenses.
Instead of procrastinating, you can start managing your money by following several money management tips. None of them are difficult, but you’ll have to be persistent.
Keep on reading to learn about the top five money management tips for college students!
1. Use a Budgeting App
One of the best money management tips a college student can follow is to use a budgeting app. These apps are designed to be used on most mobile devices and allow you to keep track of both income and expenses. Most budgeting apps revolve around setting a spending limit and monitoring your purchases so that you can save.
Whether you use something like EveryDollar or Mint, a budgeting app will remind you to stay on track. If you manage to spend more than you’ve budgeted, you’ll get a reminder so that you prevent yourself from spending more.
2. Get a Credit Card
Credit cards and effective money management tools providing that you’re disciplined. Many people will get credit cards and start spending money from left and right. However, this can run you into a lot of debt and you’ll end up spending a lot on interest rates.
If you’re a college student, there’s a good chance that your credit score isn’t that high. When you use a credit card, you can make small purchases and pay off the debt immediately. This will increase your score and allow you to get by while you’re in school.
3. Choose the Right Bank
You must choose a bank that you can trust, which can seem like a difficult task. To better manage your money, you should look for one that’s local to you.
If you’re away from university, you may want to find a bank that’s near it. You can have multiple bank accounts, so don’t worry about leaving the bank when you visit home.
When choosing a bank, you’ll want to look at their policies. For example, some banks offer overdraft forgiveness whereas others charge you the moment you overdraft. This can be a dealbreaker for many people because they want to have the option to overdraft without paying $40 each time.
Your bank should also offer great customer support because you may need to contact them periodically for various reasons. If you decide to travel or would like information about something, you’ll need to contact your bank over the phone. With bad support, you may be sitting on hold for a long time.
4. Borrow as Little as Possible
Most college students start their education by borrowing money. If you’ve borrowed several thousand to get into a school, you’ll want to borrow as little as possible. This is especially important for anyone new to college because you probably won’t be working until you adjust to the school.
If you decide to get a credit card, try to use it on small purchases. The main idea is to build your credit score while buying things like food. You must keep in mind that you’ll be coming out of college with a ton of money in debt, so you shouldn’t dig yourself a deeper hole by borrowing more while in school.
You can try to apply for grants and scholarships so that you can focus on saving.
5. Work During Breaks from School
When it comes to financial advice for college students, getting a job is one of the best as it allows you to earn money and start paying off debt. If you get a job, you won’t have to rely on a credit card or borrowed money from the college to buy food and supplies.
Working will also let you put money towards your tuition, preventing you from having to pay interest rates that come with student loans.
While it’s understandable that you may not be able to work while attending school, you’ll have plenty of time during breaks to work part-time. Summer and winter breaks offer college students more than a month of free time, enough for you to pick up a job and keep it throughout your degree.
You won’t be able to work the best job, but you can earn more than minimum wage. Large franchises like McDonald’s and Walmart are always hiring, so look for places near your home. If you want to work during college, try to find something within walking distance of your dorms.
If you’re someone that enjoys working for themselves, consider starting a business as a side-gig. There are plenty of things to know when it comes to the marketing side of things, so you’ll be able to start earning an income after you’ve read them.
Money Management for College Students Has Never Been Simpler
Start following these money management tips if you’d like to get through college and come out without having a ton of debt. While money management for college students is thought of as something that’s near impossible, you’ll be able to minimize debt and start saving.
One of the first things you should do is open a bank account. From there, you can start storing money and avoid having to use a credit card.
Browse our articles if you’d like to learn more about personal finance!