Lifestyle

College: Learning How To Manage Money For The First Time

Learning to manage my money in college has been nothing short of a nightmare. It always seems like I need more money to live on than planned. With unexpected expenses, the overwhelming desire to say “yes” to everything and the need to save for the future, managing money can be stressful. This post is filled with tips and tricks to ensure you are managing your money in college (or in life!) successfully. Here’s to keeping our purses full of cash, right?!

 

 

Disclaimer: This post is collaborative (or contributed) and may contain affiliate links.

 

College is the first time that most people have been out on their own without their parents to take care of them. During your first semester, you’ll learn so many new things. Learning to fend for yourself is one of the most valuable things about the whole experience, but also one of the most difficult. Trying to manage your money is often the biggest challenge that you’ll face when you first start college. When you’re living at home with your parents you probably don’t think about how much everything costs, you just know that when you open the fridge, there’s food in there. But now it’s down to you to pay for all that stuff, you might feel a bit lost. The first thing to remember is that you’re going to make mistakes, everybody does to start with and that’s fine. The important thing is that you learn from those mistakes and start managing your money effectively. If you’re worried about dealing with money for the first time, here are some great tips to help you along the way.

Pixabay

 

Create A Budget

 

Creating a good budget is at the heart of good money management. If you don’t keep track of what you’re spending and what you’re bringing in, you’ll never get on top of your finances. Sit down and make a list of every single thing that you need to pay for each month. You’ll get all of the obvious ones like rent and food, but don’t forget the smaller details. For example, you’ll need to buy new clothes from time to time, and you’ll need detergent to wash those clothes. You’ll need things like toothpaste and shower gel. It’s all of these smaller items that you take for granted when you’re living at home that people tend to forget. Even though they’re fairly cheap, it all adds up and if you miss them out of your budget, you can run into trouble.

 

Now that you’ve got a list of all of your outgoings, look at how much money you’ve got in the bank and how much you’re earning each month if you’re working. Take the outgoings away from your income and you’ll hopefully be left with a little bit spare. Some of that should go into a savings account, the rest is yours to enjoy.

 

Understand Loans

 

The financial world can get pretty confusing so it’s important that you take the time to learn the basics. Even if you’re managing your money effectively, there’s always the chance that you might be a bit short. In that case, you’ll have to go to a loan company and borrow some cash. Before you do that, it’s important that you understand how the process works, so you don’t end up taking out an expensive loan that lands you in more trouble in future.

 

Start Building Credit

 

People are often wary of using credit cards because they think it means they’ll get into debt, but that’s not true as long as you use them properly. It seems a long way off, but after you graduate, you’ll want to start looking at buying a house and you’ll need a mortgage. If you want to borrow money for a house you need a good credit rating and now is the time to start building one. One good way of doing it is to use a credit card for your weekly grocery shop and then pay it off right away. You’re not getting yourself into any debt and you’ll finish college with a good credit rating.

 

Follow these simple money management tips and you’ll get through college in a strong financial position.

Disclaimer: This post is collaborative (or contributed) and may contain affiliate links.

You Might Also Like

Previous Story
Next Story

2 Comment

  1. […] your credit rating – The third and final tip for those who are looking to manage their money better and boost their credit rating is to actually understand your credit score. What influences your […]

  2. […] you have at the end of the month. Your expenses should include the things that you HAVE to spend money on every month. This can be your insurance, your bills, your holidays or even the cost for you to […]

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Unknown-5