For most Americans, studying at college comes with a price they have to pay later. An average college-goer gets burdened with a college debt of $37,172, which takes almost 10 to 30 years to pay off. The tuition costs are continuously rising and the student generation is hustling to make ends meet for their education.
As much as the costs of education seem intimidating, most students dream of landing high-paying jobs to secure their finances during the professional journey. The reality, however, is far from this notion. A college degree doesn’t necessarily guarantee a stable, high-end job. It’s the skillset and the habits you have picked on during your student journey – the notable ones being money management skills.
If you’re careful with money during your student years, there’s a higher chance you’ll create your path to fast and secure finances. In this article, we’ve listed a few habits students can adopt to helping their future selves. Read on to find the list below.
With money, comes responsibility – and that means setting a budget. Most students acquiring loans do not usually stick to a budget or have a hard time dealing with one. The monthly expenses could be boiled down to textbooks, groceries, and other bill payments, where your pocket money can drain, if not appropriately managed. Setting a budget allows you to allocate your expenses in a hassle-less manner.
Sometimes, the pocket money can fall short of fulfilling your expenses, where your skill or ability comes to your rescue. If you doubt it, apply for part-time jobs in your locality. If you’re going to earn for yourself, the chances are that you’ll gain the taste of hard work and the value of managing your money the right way. For instance, if you’re good at designing or writing, you can create gigs on freelance sites like Freelancer or Fiverr and make money while you polish your skills.
Owning a credit card might make you feel mature, but using it the right way is the actual challenge every cardholder has to face. The smartest way is to use them is when you have the credit to pay it off immediately. If you keep this habit for the long-term, you will notice the change in your spending habits and will be aware of how much is left in your account.
If you’ve thought of setting a budget and some financial goals, keeping a diary is a good idea until your room feels more like a paper warehouse. It’s time to go paperless when you have digital means and resources. To keep your budget on track, you can download an expense tracking software like My EasyFi, You Need A Budget, EveryDollar, and Good Budget. Here, you can also get a chance to earn a 50% commission via My EasyFi app.
Save it in your account or save it in mason jars, money saving is the goal that every parent teaches their children. You can save about $1200 on brewing coffee in your dorm instead of buying it from Starbucks. We know that the end-of-the-season sale might be hard to resist, but if you’ve got more significant goals ahead, sacrificing short-term happiness becomes a formidable choice. The money you save one time can seem like something small, but it can add up to something big someday.
During your student years, you need absolute essentials that change from year one to year four. It could include your textbooks, your furniture, equipment and other items. You probably don’t need expensive stuff that you’re going to use for one semester and then throw it out the next moment. Instead of spending your hard-earned money like this, scour the secondhand shops or e-stores on selling sites like eBay or Craigslist. If your preferred item isn’t there, you might want to borrow the object to cut the costs.
Even though you’re going to take loans for college, applying for a scholarship is an option you should probably consider. You get several benefits here; first, the scholarship covers your tuition fee. Second, you don’t have to bear the loan hassle that can take up years to pay off. It’s best if you keep looking out for scholarships throughout the year in your college. See if your academics match the eligibility criteria and then apply.
Several universities offer free-of-costs courses and resources to help the students develop some skills or learn their ways through their course with ease. It could include access to digital libraries, WiFi-enabled dorms, and learning centers. If your school offers you a similar opportunity, make sure you avail it to the full extent. Instead of going out to seek other means of learning and spending your good money on it, stay close to your school to see what free resources are coming your way.
At the level when you’re studying, it’s hard to imagine students investing in a profitable project. No, you don’t have to be a tycoon to invest your money into something big. While the risks are running freely, you can still scour for tried-and-tested methods like purchasing bonds, opening an IRA, buying an S&P 500 index fund, or even install an investment app to help you start building up your future.
As the last yet the most significant bit, you need to consider your finances when you’re spending your money. You might be buying anything, but keeping your financial situation and your future goals in view will help you pinch closer to helping you develop a healthy spending habit. You will be mindful of how you’re spending your money and will be able to differentiate between your wants and your needs. With that, your student life will experience a shift towards financial freedom in the future.
Loius Martin is a Creative Marketing Manager at Invictus Studio.He does guest blogging for multiple websites.