For many young people, college is the first opportunity to learn how to spend large sums of money wisely. But since this is also often the first time they have been entrusted with the responsibility of credit cards, it is easy for students to overspend and fall into debt.
Here are some money management tips to help guide college students in managing their finances and making the most of their college experience.
Design Your Budget
Managing money in college is much easier when you have a plan in place. Start by listing your sources of income, parental allowances, savings, and estimated expenditures each month. College student expenses typically include meal plans, restaurant meals, laundry, hygiene items, bar tabs, and school supplies. Don’t’ leave anything out, and then try using an online finance management tool or app to keep track of your budget.
Pay Bills on Time
Monthly bills are a huge part of money management for college students. Putting off bill payment may sound like an attractive option when you’d rather spend your money on other fun things. However, this often results in late fees that add up over time. Consider paying your bills online to hold yourself accountable and never miss a payment.
Take Advantage of Student Discounts
Managing money in college can be made a lot easier with student discounts. Everything from movie theaters to gyms offers student discounts, so take advantage of them anywhere and everywhere. Lots of travel services offer discounts for students, which is perfect if you have the desire to see the world between semesters.
Check Your Balances Regularly
College students are notoriously susceptible to identity theft, and the best way to prevent it is by checking your account balances on a regular basis. Money management for college students can be challenging so it’s smart to pay attention and educate yourself on the basics.
Money Management Tips for Lump Sums
Paying for college is an excellent way to learn how to manage large sums of money, which is something that will likely come up again later in life. For example, you may receive lump sums of cash from lottery winnings claims or lawsuit settlements and be faced with important financial decisions on how to manage them.
If you receive settlement or annuity payments, but need cash now, one option is to sell your payments for lump sum cash and take control of your financial future. At Novation, we buy annuity payments to help you take control of your financial future. We’re here to listen, so contact us today for a free quote
*Novation is not a financial advisor or consultant and strongly recommends that you speak to a lawyer or accountant before making any significant financial decisions.