Ever been in a situation where you find yourself short of money after 10th or 12th day of the month? If yes then fear not, you aren’t the only one facing this problem as most of us who went to college experienced this, when we were short of money because of our continuous appetite for spending unwisely often sent our bank balances to single digits. The urge to spend is never ending, whether it is for that pair of boots at ‘Clarks’ or the new crunchy burger at “Burger King”; managing your money isn’t as simple as it looks. College is also synonymous with young people attaining freedom when they move away from home. Most of us don’t adjust easily to this new routine where we are the managers of our finances.
Not Determining Wants Vs Needs
Even though it sounds pretty basic, many college students try to live outside their means as they haven’t thought about categorizing their expenses into their ‘Wants’ and ‘Needs’. For instance, you understand food is a need and coffee is a want, but some days, a “Starbucks Chocó latte” is sure to feel like a need. However, there are always inexpensive alternatives for your ‘wants’, like in this situation, you can avoid the trip to the coffee shop and brew your own coffee at home.
Top 3 Things College Students Waste their Money On
SELL YOUR CAR! DON’T BRING IT TO COLLEGE! Yes, you read it right, owning a car is a lot more than just paying for fuel. With it come other expense like insurance, maintenance, parking costs, those never-ending rides with your friends and the list can be very long.
It is every individual’s ultimate dream to move in to a house and live individually, leaving behind the mess of the hostel life and the never-ending barbs from the family back at home. Living individually comes with its share of hassles and biggest of them all is the money it costs.
3. Food Habits
“Ever had a craving for that delicious new donut?” “Or that fresh sandwich?” Yes, we all do, but what we forget is the impact they have on our bank balance. Controlling and channeling your dietary habits is a huge challenge for all of us.
Tips to Manage Finances
Although parents recognize the need to teach their children the importance of personal finance management, many don’t know how to teach them.
Take Charge of your money (and Life)
The best way of taking charge of money is by planning your expenditure and then sticking to it. You should define your financial goals and make plans to reach those goals. Making these small but important changes to your lifestyle can surely help you to manage your finances better.
The best way is to start writing down your expenditures and categorize them. Keeping records also helps in identifying areas where you spend more, which then leads you to make the necessary changes. Making records also helps in meeting deadlines like last date to pay bills, paying tuition fee, etc.
Avoid Credit Cards
Credit cards can lure you to spend without thinking about repayments but the fact is you will have to repay the bank at the end of the month. Credit cards should be an absolute “no go” for students. Stick to a debit card instead.
Develop Good Eating Habits
Avoid consuming to much of junk food and try to cook your own meals. It will not only have a positive impact on your bank balance but also on your health.
Avoid Impulse Purchases
You have to avoid buying something on a whim, before buying a product think about if you really need it or if you can afford it (Wants VS Needs).