The best part about college? You have more control over your life, but this power comes with major responsibility; especially when it comes to managing your finances. On November 21, UW-Superior Career Services hosted Life-opoly, a “cash course” in personal finance designed to teach students the importance of financial literacy.
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.