Freshman Finances
The credit card reform will make it difficult if not impossible for some college students to apply for or obtain credit in
the upcoming years. While this may prevent students from exiting school with thousands of dollars in credit card debt, it does nothing to help them manage their finances today. Fortunately college students are not the only people using credit cards less; more people are using cash over credit these days proving it is possible to survive without our trusty plastic. If you are heading off to campus this fall, here are a few pointers to keep your finances in order without using credit.
-
Budget- Before you can properly manage your finances you must first know what exactly you are dealing with in terms of income (available cash) and expenses. Create a budget outlining your day-to-day expenses as well as any financial obligations for which you are responsible. Next you can evaluate how much money you have available to pay for these expenses or in some cases how much money you will have to earn to meet your obligations. Remember to update your budget whenever there are changes in your income or expenses.
-
Checking account- If you do not yet have a checking account, now would be an ideal time to open one. From this account you can either write checks or use a debit card to pay for bills and other expenses. Checking accounts earn little or no interest however they do offer easy access to your cash.
-
Savings account- Your checking account provides easy access to your money for expenses and bills. A savings account will offer a place to save your “extra” money that is not as easily accessible while offering a better opportunity for growth. With credit card use expected to decline in coming months, it is especially important for students to begin saving money for unexpected expenses or other emergencies.
-
Track spending- The best way to stick to your budget and save money is by tracking your spending. Most people have heard this advice yet few people actually follow it. Challenge yourself to track your spending for a minimum of one week. In that time, keep track of every purchase you make and the amount of money you spend. This will help you quickly determine areas where you can cut back on spending to save money for other more important purchases.
Whether this is your freshman year or you are a professional student, these tips will help you stay atop of your finances making it possible to avoid debt and save money.
Related Websites
- Money Hack Carnival #36 - Scary Finances Edition Welcome to Free From Broke and the 36th Money Hacks Carnival - Scary Finances Edition! With Halloween around the corner and some stomach turning days on Wall Street I thought it would be fun have a scary theme for this...
- Are you asking the wrong questions? Many times we ask ourselves various questions about money, debt and savings and we use those answers to set a course or path to follow towards the end goal. But what if we're answering the wrong question, and set off...
- Free Financial Management Software When it comes to your getting out of debt, having the right software can actually make a real world of difference. Some people tend to manage their efforts at debt reduction with something that is as simple and as straight...
- 12 Things Every Teenager Needs To Know About Money (And How To Teach Them) There Is More Free Money Than You Realize For College This is a guest post from Grant Baldwin, the author of Reality Check, a book about helping students transition into the real world. His new website, BrokePiggy.com, answers questions from...
- Seven Powerful Steps That You Can Use To Save $14,341 in The Next 6 Months The following guest post if from Neal Frankle of WealthPilgrim.com. You can read more about Neal's inspiring story immediately following this post. If you’re lucky enough to be a huge, multi-gazillion dollar company like AIG, you can afford to make...