While college can be a wonderful experience, it can also bring financial challenges. It's vital to get a handle on money issues before they impact your academic success. If you are a struggling college student, use these ten smart money tips to reduce your financial stress:
1). Don't get caught up in the credit card trap.
When funds are limited, the temptation to use a credit card may be overwhelming. But don't allow yourself to be taken in by tantalizing ads or seemingly low interest rates. Using a credit card is like gambling with your future. Hidden fees and steeply rising interest rates may leave you owing much more than what you borrowed. Although in the current economy, you can't depend on a high-paying job after college, credit cards are certain to leave you buried in debt. Pay with cash, not credit, and skip the future heartache.
2). Be cautious about student loans.
In the same way that you should avoid credit card debt, be wary of borrowing the maximum amount of student loans for which you are eligible. Why? Simply because the money you borrow now must be paid back in the future. Making monthly student loan payments will impact your post-college life for years. Plus, there's no guarantee that your college education will lead to a well-paying career. So, even if you are eligible, if you can survive without a student loan, don't borrow it.
3). Take a cold hard look at your monthly budget.
Figure out what you spend your money on. Certain bills, like rent, cell phones, or car insurance, are considered "fixed expenses," which means you pay a regular amount every month. Slim down your fixed expenses by moving to a cheaper place, taking steps to lower phone or utility bills, or cutting out subscriptions. Doing what you can to reduce your fixed expenses will give your budget breathing room.
4). Don't try to keep up with people who are better off.
College brings the opportunity to meet other students of diverse backgrounds. But if you hang out with people who are big spenders due to their sloppy money habits or thanks to their family's wealth you may feel pressured to spend money at the same rate they do. For a person of modest resources, this can lead to financial disaster. Especially when you're with fast-spending friends, be aware of your own financial limits. Don't pretend you can afford to spend what you can't.
5). Learn to cook.
Too many restaurant meals will drain away your cash. But many useful things can be learned from books, including how to cook from scratch. Figure out how to eat at home, instead of paying somebody else to cook for you. Grocery stores contain a wealth of options. Developing your own cooking skills will save you money.
6). Look for free or cheap entertainment.
Sure, it's a blast going out with friends every night, but it's also an easy way to dribble away cash. Constant partying also takes a toll on your studies. Save evenings out for a special treat, and look for free or cheap recreation on campus or within the community. For instance, your student activities office may sponsor special events, your college library may carry a marvelous collection of movie DVDs, or your city may hold terrific (and free) weekend festivals. Take advantage of opportunities for fun but cheap entertainment.
7). Learn about other community resources.
Knowing about the city in which your college is located will help you in other ways, too. Community resources you might enjoy or need to use may include parks and natural areas, a medical clinic, or even a food bank. Get familiar with what is offered so you can tap into these things when the time is right.
8). Buy used books.
This old reliable method has helped many struggling college students save money. Web sites such as Half.com or Amazon.com make this easier now than ever before. But you have to research the book requirements for your classes, allowing time for shipping if you buy them online. Books are identified through their ISBN numbers. When you meet people who are taking the classes you need, ask them to save their books for you. Sometimes there's very little difference between editions and even a prior edition will get you through a semester, for a lot less money.
9). Get a part time job.
Work, but don't let it interfere with your studies. If you get financial aid, you may be eligible for a work study position. These jobs pay little but are usually on campus and offer flexible scheduling. Stay alert for any opportunity to get hands-on occupational experience in your field. Paid internships are like gold nuggets and may lead to a permanent job.
10). Finally, to stay money smart, use your financial resources responsibly.
Figure out your income and fixed expenses, and always be aware of your budget. If you receive financial aid, divide the amount of your award by the months you need to stretch it (after subtracting college tuition). This may be an eye opener, motivating you to work harder to spend less. Whether your money comes from family, financial aid or a job, reduce your money stress by handling your financial resources wisely. Struggling students who follow this advice will spend less time worrying and more time striving toward academic success.