The sudden change in a student’s life from high school to college brings along many different types of experiences. This bitter sweet part of your life, although being exciting has its own anxieties and worries. The most common problem faced by students in college is the management of their budget and finance issues. It’s more like, the exciting part gets over once you ignore budgeting and finance of your various expenses. One may be able to get out this difficult time without having a proper budget but this result in serious money issues after you are done with your studies, especially for students having college loans.
In order to keep things smooth in between your college years and after, there should be a proper plan with due consideration given to all kinds of circumstances. Here is a guide to help college students deal with all their money woes from financing to budgeting.
1. Plan Ahead
There is no such thing as the most perfect time to start planning for your college life. The best way to deal with money problems is to be well prepped up even before college starts. Start earning some money in the time you gets before college starts and save all that money. Get yourself a student account for the sole purpose of your college savings. You don’t have to rely on your mom’s bank to pay off your college bills or other expenses, try saving some on your own. Researches have shown that only 60% of all college students get no financial help from their parents.
While you’re pre planning your college years, keep an eye on scholarships or grants which can help ease your student loan worries. If you’re opting for loans then make sure you look into all the terms and conditions. The best way you can keep your loans less of a burden and more of a help is to go for loan relief programs. These programs are there to simplify all the nerve wrecking loan issues. Consult with your college’s financial aid office to know about how they can help you.
3. A Budget plan
A properly planned budget is something you will always need in your life. But the need and importance of budgeting increases during this specific period of your college life. Devising a proper budget plan will not just help you know the amount of your regular expense but will also make you a smart spender. Once a budget you have mapped out your entire expenses and distributed your earnings or savings accordingly, make sure you stick to it. Almost 62 percent of college students spend their money through a budget which helps them in limiting their expenses to a specific amount. Almost 77 % of these students now manage to pay their phone and credit card bills because of proper budgeting.
4. Avoid Credit
Research shows, 70% of undergrads and 96% of graduate students now own a credit card. However, only 10% manage to pay their full balance every month. This is shocking but having a credit card and managing your credit score is not easy and specifically at this time of your life. This increasing percentage of student credit debtors results from a number of reason; the most common amongst them all is not having proper knowledge about the use of their credit cards. A percentage as low as 15% of students have knowledge about how much their interest rate is. If you really need a credit card, keep one thing in mind that it is no free money. Look for college student credit cards with a credit limit as low as $1000 and use this only when you really need it.
5. Hunt down earning opportunities
Although it’s hard to keep track of your studies and manage to work part time or in any other way. It is still the most feasible option to financially aid your college life. If you don’t think you can work somewhere in person than utilize the internet and find work that doesn’t require you to be somewhere for a certain time or most of your time. If this doesn’t work, look out for summer jobs or other part time opportunities. While this may sound something hard to cope with, but having an earning resource in college sure is a blessing.
These few basic tips can help make your college life a memorable experience and not a time where you’re always complaining about being broke. Around 42% of college student are usually depressed, sad or feel low, you sure don’t want to be a part of these 42%.