Essential Money Management Tips for College Students

When you are a student, you have to adapt to many changes that occur in your life. First, you will leave your home. You might think living away from your home and your parents is an excellent way to showcase your independent spirit, but you will soon realize that things are not always as rosy as your hopes. Many students understand how serious things are after the first month when they notice they have to spend their budget in moderation.

Once you discover that you spent your monthly budget in a week, without buying anything necessary, you quickly understand how important it is to manage your finances. If you are not careful with your money, you can spend it quickly. And how will you explain to your parents that you spent the entire amount for the month in just one week? Keep reading this article and learn how you can efficiently manage your money.

Write down all your monthly expenses

It is difficult for a student to anticipate how much money they will spend in a week or a month. When you have lived all your life with your parents, it is tough to know what you should do with your money and even more difficult to know this upfront. Therefore, after the first month of living away at college, take a notebook and write down what you spend every penny of your money on.

Discuss your budget with your parents and agree on the amount that you will need every month to pay critical bills. Apart from the fixed costs, you should also consider the variable expenses that might pop up during the month. Also, make sure to put aside a fixed amount for unexpected expenses. No one knows what the month has in store for you. So, you should be prepared. During those months when nothing surprising happens, you can save that amount and use it for future rainy days.

Keep track of your expenses

Once you have agreed with your parents or sponsors on the monthly budget, you should learn how to spend it wisely. One of the most effective methods you can use is to keep track of your expenses in a simple spreadsheet, such as Excel.

• Create three columns. The first column is for the income, the second column is for purchases and expenses, and the third is your current cash balance (=previous balance + current income – current purchase/expense).

• Whenever you need money for something, you should note it down and check how much you have left from your budget.

Even if you have calculated everything accurately, you should still save some extra money for your favorite activities. For example, you can establish a percentage of the total budget that you want to use for fun.

You can also save money from your variable expenses, like dining out and groceries. The more money you save, the more you can invest in your hobbies or education. Thinking like this will help you stay motivated, even when the temptation to spend money on the fleeting and frivolous is overwhelming.

Find alternatives to earn extra money

If you feel that the money you receive from your parents is not enough during the month, first of all, express your gratitude for anything they offer. Many students receive nothing from their parents. If it is still insufficient, think of alternatives.

One of the most common activities that students try for extra money is freelancing. This method helps them in various ways. By becoming a freelancer, students gain more practical experience, which will help them when they decide to apply for a job after graduation. Also, they can make money while having a flexible schedule. They need this flexibility to have enough time to study, get good grades, and, if we are honest, have fun.

Another alternative that you can try is applying for a paid internship. There are many companies worldwide accepting students in internship programs. In comparison to freelancing, you won’t have as much flexibility. Still, you are often allowed to establish your working schedule according to your course hours. On the other hand, you will have a fixed income that you can use to invest in additional training courses or in developing a hobby.

Benefit from your status as a student

Students can benefit from various opportunities and discounts. You can develop a day-to-day strategy to keep expenses under control. Students can pay attention to the meal plans available on their campus and save a great deal of money on food. They can also check for discounts at the theatre or cinema. It is effortless to benefit from discounted prices when you are a student.” Also, instead of buying books for your exams, you can borrow them from the library or rent them from specialty shops or online.

You can also benefit from discounts when using public transportation. Instead of using a taxi or rideshare to go from one place to another, you can use public transport at a discounted price. Even though the cab arrives faster at the destination, you can save a lot of money. You can also keep an eye on student communities and clubs to identify any fun activities that may not cost you a dime. Student organizations on and off-campus often organize parties without asking participants to pay an entrance fee. Also, the prices for beverages are very reasonable when attending such parties.

Wrap Up

Being a student is not easy, but it can be a lot of fun. When you realize that you have to deal with your monthly expenses and manage your budget, you may feel overwhelmed. You just need to stay organized. As long as you keep track of your expenses, you generally will not have to worry about your money lasting until the end of the month. Also, if you want to spend more than what your parents can give you, freelancing or paid internships are good options. You will also gain a lot of practical experience that will help you later when you want to apply for a job.

So, successfully managing your money as a student may not be as difficult as it seems after all.