As a collegiate, managing your finances is likely a part of adulthood that you’ve never fully experienced before. You need to know how to budget, pay bills, and not blow all of your money on eating out. Balancing a social life, paying for school and what you need for it, and just keeping track of your money can get pretty confusing. But don’t worry; here are some tips to help you figure it out!
1. Open a savings account
If you don’t already have one, open a savings account with a bank as soon as possible. If you have a regular income, you can set a specific amount of money to be transferred to your savings every month, so you’ll be able to build up an emergency fund if the need ever arises. Even if it’s only $10 or $20, every little bit helps! Having that extra money will be great when you need it; whether that’s for medical bills, repairs to your car, or just to treat yourself to something nice after finals. Work toward that goal and teach yourself how to save money.
2. Download a budgeting app
It’s easy to tell yourself that you won’t spend more than X amount of money every week, but when your friends ask you out for that third happy hour or your roommate really wants to get sushi, it’s hard to say no. By making yourself a concrete budget, you’ll be able to manage your money much better and remind yourself where you stand for the week (or month, depending on how you budget).
3. Plan for the future
Maybe you don’t have a lot of expenses right now; you bought your books, you paid the utilities for the month, and your loans won’t kick in until after you graduate. But don’t let that give you a false sense of security! Look ahead and plan for your future expenses. You’ll likely have to pay school loans one day and you’re going to want to move out of your parents house at some point. Begin saving up for your future apartment or vacation, or maybe even a wedding, so then when the time comes you have a plan to pay for those expenses.
4. Handle your credit score
I’ve heard so many collegiates talk about how they don’t know what their credit score is! I didn’t either, until one of my friends from home had to buy her own car and needed to make monthly car payments. In order to do that, she needed to know what her credit score was and whether it was good enough to qualify to buy the car. These are real issues we’ll all need to deal with sooner or later, so it’s important to know what your credit score is and how you can make it a good number! (Hint: always pay your bills on time!)
5. Check your bank account!
It’s no longer okay to be scared to look at the numbers. So, you know you went way over budget for this week. Make yourself face it. Instead of thinking there’s a few hundred in your account and being surprised when you see $32.60, be familiar with how much money you have. You’re being a more responsible adult by regularly checking up on it and you’ll thank yourself later.