The majority of young adults who enter their freshman year of college will have limited knowledge in the world of finance depending on their backgrounds. Whether frugal or a big spender, abiding by the guidelines of a reasonable budget will help immensely. A couple tips to guide your spending habits:
- Track your spending: Are the daily Starbucks lattes really a necessity? If you buy a latte every day for $3.75, by the end of the year a student will have spent over $600! Usually, just by tracking expenses, you’ll start to limit your expenses.
- Form a plan: The best way to manage money over the course of a semester is to form a budget. List your sources of income such as scholarships, money from your job and parents, loans, as well as expenses like tuition, groceries and books.
- Pace yourself: If you blow all your money at the beginning of the semester you will be suffering later. Give yourself a reasonable spending limit for each week.
- Look ahead: It could be spring break with friends or an insurance bill, if you know a large expense is coming, put money away ahead of time. It is a lot easier to set aside $50 a month than to come up with $500 when the bill is due.
The budgetary behaviors you instate now will carry throughout your adult life, so creating a financial plan will pay off later in life.