Practical Money Management Tips For College StudentsMoney | April 22, 2010 at 5:15 am
People go to college and online universities to acquire professional education and give their career the much-needed boost. Most of them, however, involve in things that shatter their dreams of becoming a successful professional. One amongst those things is managing their funds poorly.
Though they don’t have many sources of income except for their parents, they try to get money from every possible source to enjoy days of freedom, without knowing the consequences of not repaying it. One of the major effects of it is ruined credit score since the beginning of their career. Let’s discuss few money management tips for college students that would definitely reduce, if not avoid these consequences.
1. Cut Your Credit Cards
Seriously. Take a scissor (thick one), pull out all your cards from your wallet and cut it up into two. It’s not done yet. You need to cut it into very tiny pieces or you will stick them and reuse them. Maybe this ‘cutting thing’ sounds weird, but majority population of the US is in debt due to credit card, because it makes spending so easy and fun. Repayment, however, becomes an impossible task then. So, avoid inculcating a habit of spending through credit card.
2. Avoid Late Payments
This is one of the major factors that affect your credit score. If you keep making payments on time, your score would improve gradually. Missing payments, or making late payments, however, ruins your score. This is one of the many habits people with bad credit have. If you are one of them, change your habits. Adopt these money management tips for college students. If you haven’t cut your cards, make sure you pay the full amount every month.
3. Start Saving Money
Remember, you, as college students, don’t have any other sources of generating money except for the pocket money you receive, and part time job, if any. What would you do if you meet with a financial emergency? How would you arrange for more money? In most cases, people borrow. Instead, it’s better to save money and be prepared for any such emergencies.
4. Start Investing
If you think you have accumulated enough, start investing your money to grow it considerably. It is, however, important to know about every investment product and how do they work before investing in any of them. Make sure you don’t invest in high-risk products like stocks, currencies, commodities, derivatives, etc. You can start with putting money in bonds, 401k, gold, CD’s, mutual funds, and so on.
These are some of the best money management tips for college students. These would, however, not be of any use if it’s not worked upon.