Everyone’s money habits are different – know your own! In college, it’s too easy to go with the flow and spend money like everyone else. The reality is, not everyone has the same resources to spend freely, dine out, take vacations, and dress in the latest fashions. Understand your own money habits, income, and expenses and live accordingly.
College can be free! Don’t overlook free money resources. Sites like brokescholar.com and fastweb.com are great places to start your scholarship searches. Considering you’ll be paying for school for the next 20 years with loans, why not get some paid for up front with free money? $8 billion goes unclaimed every year.
Learn to balance your checkbook! Above all else, know what’s coming in and what’s going out. With resources like mint.com and yodlee.com, you can keep real-time tabs on your account with text alerts and emails. Every overdraft fee is money you could’ve spent (or invested) elsewhere.
If you can eat it, drink it, or wear it, it doesn’t go on your credit card! Too many college students get caught in the credit card trap early on by spending money on consumables. If you don’t have the cash for food, drink, and clothing – don’t buy it.
Plan your student loan needs ahead of time! Student loans were designed to be used for tuition, room & board, books and fees. Today they’re used for Spring Breaks, TV’s, shopping sprees, etc. If you know what you need at the beginning, you’ll be much less likely to go for that “emergency” student loan mid-semester.
At some point you have to live like a college kid! Here’s the 3-word key to financial success in college: Cheap is Chic. No one expects you to drive the nicest car, have the nicest clothes, or dine in the fanciest restaurants. You’re in college. Learn, study, and appreciate frugality – it will pay dividends when you graduate. Plus, it’s way more fun to live like a college kid in college than when you’re a professional.
Read a financial book every semester! They don’t have to be long and have titles like Econ 201. Read books like: The Richest Man in Babylon, Rich Dad, Poor Dad, Financial Peace, or The Millionaire Next Door.
Take a set amount with you for “social” outings! When it’s gone, it’s gone. Leave the plastic at home. (see tip #4)
Create a habit of saving money! It’s much easier to save 10% of your income when you’re making $7 an hour, versus a 5-figure salary. Start the habit while you’re in college and your wealth will begin to exponentially increase over time. Open a money market account with emigrantdirect.com, ingdirect.com, or smartypig.com and earn the highest savings account interest rates.
Spend time focusing on your finances! By mastering the fundamentals of money early on, you’ll enjoy more satisfaction in your career and your life in general.
