As a college student, I relate to many peers who began this journey with a vague understanding of financial education. High school doesn’t typically cover how to manage finances, which can be very frustrating for some of us. Once we start this journey, terms like savings, budgeting, and credit scores can feel unfamiliar and overwhelming.
I have always had my father’s help with my finances, so during high school in Mexico, I never had an issue with them. However, after high school, I decided to move to the US for college, and everything changed. I moved in by myself, having to budget everything and educate myself on personal finances. I couldn’t depend on anyone’s advice because I only had myself. I began having trouble with budgeting and credit scores, which activated my problem-solving skills. When it came to budgeting, I had to learn, from scratch, how to administer my money throughout the month.
Here are some things that proved to be incredibly useful to me, and made a real difference in my journey:
- Planning how much to spend on necessities and wants can be really helpful. Before buying anything, I’d ask myself, “Do I want it, or do I need it?” Necessities can be things like groceries, transportation, utilities, and rent, while wants could be luxuries or items that aren’t necessary.
- Prioritizing your needs over your wants may sound like fatherly advice, but it’s worth knowing. If you don’t focus on your needs first, having too many wants can leave you unable to cover the essentials, and you might find yourself stuck in that situation.
- Always setting aside some emergency funds just in case can be useful. These emergency funds might help when your phone’s screen is broken or when more is spent on wants than intended.
- Keeping track of spending was also valuable. Anytime I made a purchase, whether at the grocery store or the bookstore, I noted how much I spent. This created a clearer picture of my expenses and helped me organize myself in order to remember prices for the future.
- Starting a credit score was a great idea. It felt like the perfect time to do so, as it could open up possibilities for financial opportunities in the future.
With all these tips in mind, navigating the financial journey of college doesn’t have to be a headache! These insights will continue to be useful beyond college as well. Managing finances can be stressful, but time and experience help ease that burden. If I were to start college again, I would have loved it if someone approached me with this perspective. I hope this resonates with anyone dealing with the same challenges I faced!