This is a guest post written by Lauren Dzuris. Lauren runs MyCCFinder, a website that offers several Promo Codes discount codes, and hot deals on everything from home décor to your groceries.
Once we finally graduate high school, we can see what the rest of the world has to offer. We can pretty much create our own schedule from now on, decide which path we want to go down, and even decide when and where we want to go to college to continue our education.
Although college can be some of the best memories of someone in their twenties, it can also be remembered as one of the most expensive times! Since college students don’t have that much time to work a part-time job, it can often be stressful being on such a tight budget. So, if you’re looking for ways to budget your money better as a college student, continue reading below.
Think affordable: The first step you should take is to consider where you want to go to school. I highly recommend that you go to a community college for the first two years. Since you’re only getting your general education classes out of the way, you don’t need to be paying top dollar. Just make sure they are able to transfer.
Not to mention, this will help you cut the cost of your student loans, allow you to stay home so that you’re not paying for rent and you’re able to work part-time still.
Save up: Try to save up money while you can. When you’re off of school for summer vacation, work as much as you can, and try to put half of each paycheck (or more) into your bank account. You’ll thank yourself later when you don’t have time to work.
Create a budget: Be sure to create a weekly or monthly budget. This budget will tell you how much you need to put towards bills, food, gas, how much you can spend on leisure and everything else. It will help keep you from overspending, and let you know when you have enough to buy something nice for yourself.
Work when you can: Although it’s hard to find time to work in college since your grades are first, try to find little side jobs here and there to make a couple bucks. It will give you a break from the books and put some money in your pocket!
Loans: It’s great that you may want to put some of your money towards paying off your classes to avoid student loans as much as possible, but it’s not a good idea if it’s making you go broke. Student loans are there to help you and to help fund you through college. Pay what you can, but if you don’t have the extra money don’t worry about it!
There are several great ways to budget your money as a college student. For some ideas, consider the tips above, and just keep in mind that times are hard now, but you’re going to college so that you can improve your financial and long term goals.
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Kudos on the advice to save by attending Community College, Save up and Create a Budget!
But the other points here need more clarification.
“Work When you Can”. Working in college isn’t always a good idea.
1. Studies show that most undergrads work parttime jobs to pay down their credit cards. Mistake!!! Don’t pile credit card debt on top of student loan debt, you’ll be paying off forever. Use credit cards for emergencies only, and avoid additional debt especially now, while you’re investing in your career.
2. Working interferes with studies, unless the job is related to your field of study. Research by the Higher Ed Institute of Research found that 2 factors negatively affect student performance: working more than 16 hours a week, and working off campus (the commute takes away more study time).
Another clarification:
“Loans … Pay what you can, but if you don’t have the extra money don’t worry about it!”
She should have said: Pay what you MUST, and a little extra whenever you can, in order to reduce the loan principal and GET OUT OF DEBT as fast as possible, so you can start saving earlier for all your future needs: transportation, housing, retirement.
The biggest mistakes that students entering college often make are:
Mistake 1. Failing to research the demand for and starting salaries of the career you’re pursuing, so you have a reasonable income expectation at graduation. The college recruitment folks will exaggerate placement rates and starting salaries, so do your OWN research, from independent, trusted sources. It makes NO SENSE to spend $23,000 for a career degree with a starting salary of $19,000. Check this NYTimes article: http://www.nytimes.com/2010/03/14/business/14schools.html
Mistake 2. . Getting more loan than you need. If you can finish in 3 or 3 and a half years, do. Don’t let anyone talk you into a borrowing one cent more than necessary. Especially if the loan advisor works for the school you’re applying to. Check this article in CBSMoneyWatch article:
http://moneywatch.bnet.com/saving-money/blog/bank-dad/students-in-debt-1-trillion-hole-and-more-dropouts/740/?tag=col1
College is a wonderful, exciting time to invest in your future.
Do your homework and plan carefully, and your investment will pay off.
KGriffin
Financial Literacy Advocate and Educator
http://www.MoneyU.com
Thanks KGriffin for taking the time to share your comments. College students can use all the advice they can get on how to save their money and pay down debt.
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