College can be stressful due to the endless projects and assignments that you need to complete several projects. At the same time, it can also be a struggle due to the presence of pressure from parents’ expectations or problems in relationships with people. Another thing that can make college unbearable is when you start to experience financial issues. When this goes beyond your control, it may lead to more significant problems.
Numerous statistics from social science studies attest to the poor financial knowledge of American consumers, and the significant downsides that occur from the lack of knowledge. — Utpal Dholakia Ph.D.
What you need to do is to learn how you can manage your finances. Always keep in mind that there is a way on surviving college without having too much student loans or credit card debts. Here are some of the tips you need to know:
Know What You Need (Not Want)
At this point, it is crucial to emphasize the fact that what you need is different from what you want. The attitude you need to be familiar with is to know when to consider something as a “need.” This refers to things that are essential for daily living such as food, water, and clothing. Find a way to only spend on these items so that you will not incur bigger expenses. You do not need to shop every week, especially if you have lots of existing wardrobe. At the same time, you do not need to eat at a fancy restaurant just to satisfy your food cravings.
According to one estimate, people who start saving at age 25 should put away about 15 percent of their income for retirement. This percentage climbs to a whopping 43 percent for people who start at age 40. — Alain Samson Ph.D.
Learn What Opportunity Cost Means
In Economics, opportunity costs pertain to the value that you forego because you purchase another thing. Imagine yourself buying a brand new cellphone, which you do not need as of the moment. When you spend thousands of dollars for this mobile phone, you somehow forego an opportunity to enjoy another thing. Before spending your money, try to consider the pros and cons first. Do not rush into making purchases so that you can adequately think whether an item is worth buying or not.
Practice Making A Weekly Budget
As much as possible, make an effort to create a weekly budget and follow it. The first step is to determine how much money you are receiving at the start of the week. It is essential that you create a list of expenses that will be less than your weekly cash inflow. When you exceed this amount, that is the time that you would suffer from financial problems. Once the amount of expenses exceeds the budget, be sure to cut some of them. Remove the items that are not necessary.
Every dollar you don’t spend translates to less money you need to make, which lowers your stress level. — Nicole S. Urdang, MS, NCC, DHM
Record Your Financial Transactions
Know how much amount of money that you are spending every single day. Keep track of the expenses so that you will have an idea where most of your cash goes. The advantage of keeping a list is that it can help you create a clear picture of where you stand regarding your financial status. The more you know about the transactions, the easier it will be on your part to create a budget. To ensure that you will not miss the recording process, feel free to download financial tracker apps on your smartphone.
Handling money in college is significant as it can make or break your future. Make an effort to do it the right way.