Article by Emma Rundle
If you’re in college and concerned about how you spend your money, here’s your chance to make things right.
Unfortunately, many college students develop bad habits when it comes to money, which makes this period of their life challenging. There are many mistakes that you can make when it comes to budgeting, so the fact that you are here now brings you one step closer to developing better spending habits.
Here are some of these mistakes that could affect you. If you’re in college already, take notes and start saving up! If you’re about to be a student, forward this article to your prospective schoolmates, as they could seriously benefit from the advice. Financial problems follow us everywhere, but that does not mean we should give up.
1. Not setting up a budget
The first step you must take is to create a monthly budget for your expenses. This will get you an idea of how much you are spending on every single item that you are purchasing and how much money you have left to spend on other fun activities.
I know you might have already heard too much about creating an emergency fund, but it’s important to do so in order to organize your life properly and not overspend. As difficult as this might sound, it can save your life when you find yourself in financial issues.
More than that, you will feel less stress and thus, more comfortable with how you are structuring your spending. Begin by using a budget calculator to make things easier and look into other online resources if you need further help.
2. Abusing your credit card
Many students are not entirely familiar with the concept of credit cards. They know how they might work but never get the gist of how they actually function.
The first thing you need to do is understand how credit cards work. It’s not free money, it’s debt that you’ll have to pay back at some point in your life.
If you will be unable (due to different reasons) to pay it off in the future, it might bring you into real trouble, not to mention the stress and anxiety that comes with it. life post-graduation can be difficult, especially the first few years, so try to minimize the burdens that you’re putting on yourself. If you’re wondering how to make money as a college student, make sure you look up your opportunities before engaging in any harmful behaviors.
3. Picking the wrong classes for your interests
Even if at first it might not seem like a big deal, signing up for the wrong classes might hurt your financial freedom extensively.
That’s because classes cost money, so if you do not drop the ones you are not actually interested in before the specific deadlines, you will lose heavy dollars, bringing you many money problems. In a nutshell, it’s money down the drain. Thus, make sure you know what your goals are.
Do some thinking and understand what your life objectives are. according to that (and, of course, by following your passions and interests), only take the classes that will benefit you. In the end, it’s all about the return to investment. How much will you get for spending such an incredibly high amount of money?
4. Money spent on food
If you are able to cook for yourself, the best way to go about this is by buying cheap yet nutritious foods.
That means no Burger King, McDonald’s, or KFC. Go to the grocery store and pick foods such as chickpeas, beans, or corn instead of spending your money on ice-cream and Australian prepacked meals. They will keep you satiated for a long time and give you the energy to conquer the date.
Tip: you should have one cheat day per week where you go out with your friends and spend money on whichever. However, this should not become a routine.
5. Forgetting to apply for financial aid and benefits
The first thing you must do before after picking your desired college is to fill out the Free Application for Federal Student Aid or FAFSA.
This should be a priority, especially if you do not come from a wealthy family. If you need help filing it out, go to ask https://au.edubirdie.com/do-my-assignment and ask one of the financial advisors or writing service counselors online might be able to help you.”- is it real, would you be so kind to help me?
Also, make sure you look into the scholarship that your school offers, as well as the external financial aid opportunities that you could benefit from.
Make sure that you are following the above advice thoroughly as a college student. Here’s your recap: first, set up a budget and understand your expenses. Do not abuse your credit cards, or, to put it briefly, know your limits.
Stop picking the wrong classes for your major and spend less on high quality food. Last but not least, apply for financial aid ahead of time to maximize your chances of coping with these problems during college. You got this, good luck!
Emma Rundle is a freelancer, copywriter, and geologist. She spends her time helping people apply for financial aid and making sure students are not in debt. Her passion is traveling, an activity that she pursues as a remote worker.