Before I came to college, I had no idea how to track my spending habits or balance a checkbook. I was left to figure this out on my own, but I’ve learned a few good tips in my short time here that will help every collegiate balance a budget and feel more financially aware.
1. It is more expensive to live on your own.
Without your parents dropping that $4 on a coffee every once and a while, or paying for your groceries, your bills will begin to add up. It’s important to think before you buy something, unless you absolutely need it. A trip to Wiggin may be good once every week, but every day is pushing it if you know you haven’t got a limitless budget!
2. Keep your credit card receipts.
Every. Single. One. If you forgot you charged $100 for groceries the other day, you can go back and look at your receipts to find what you spent money on. This is also a great tool in case your card has been stolen, or you need to prove what you’ve been spending on.
3. Make a spreadsheet and keep track of all of your purchases.
I use Excel, but you can create a table on a word document (or a good old fashioned piece of paper) that will help you keep track of everything you’ve ever bought. Simply set up columns for what you’ve bought, how much it costs, and how much money you have left on your credit card, K-card, or in your wallet. This will also help you to budget better!
4. Start saving now.
Get a savings account from a bank you’d like to open an account with (they should be trustworthy and have a good reputation). What’s great about a savings account is that it builds up interest. In simple terms, interest is money you earn by giving the bank your money. The longer you have money in the bank, the more interest you will make. And the more money you have in the bank, the more interest you’ll make as well! A great way to start saving is to put every check you receive for your birthday or a holiday in your savings account—both my sister and I swear by this method!
5. Know how to balance a checkbook.
Here’s how it goes: every time you write a check, you should be recording it! In your checkbook (you can order them at your bank or wherever you have a checking account), there is a small booklet that says “Transaction Register,” or something similar. In it are columns for dates, payments or withdrawals, transaction description, balance, or the deposit. Every time you write a check—even if it’s a small amount—record it. Write down the date that you wrote the check, the payment (the amount of money you spent and withdrew from your account), your deposit (money put into your account), and the balance (total amount of money left in your account after spending). The transaction description is also vital–it’s whatever or whomever you’re giving your money to (examples: Starbucks, Mr. Bob’s Flower Shop, Nordstrom) and what you spent it on (examples: 45 cups of coffee, flowers, shoes). Voila! You have balanced a checkbook.
6. Don’t impulse buy unless you have the money.
$150 worth of Kale juice for your mini fridge? Yeah, maybe not. Those Jimmy Choos you’ve been coveting for years now and can finally afford? Only if you’ll have enough money to be comfortable financially after spending.
7. Thrift, thrift, thrift.
I found a Marc Jacobs skirt for $15 at a Goodwill three years ago, and I still wear it. Thrifting is your friend. Goodwill or any other local consignment shops price nice clothes (if you can find them) much cheaper than they would be full sale. Also, furniture for your apartment or dorm can be purchased from here for fairly cheaply. Make sure what your buying is of good quality by looking at seams and details, though!
8. Set yourself a budget.
If you know you can only spend $40 on groceries each week, stick to that.
9. Read the news.
Learn about how stock markets are changing, and what may be burdening you or your country financially. Be educated about finance, even if it seems distanced from you.
10. Learn a new financial term every day!
Sites like Investopedia are great for this.
Finance is incredibly important, and the small things—like noticing what you’re spending or checking your stock app everyday—will get you financially far. Good luck with your future saving and spending, collegiates!
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