Financial Tips for Students

Source - blognbuzz

Once you finish your school and enter college you want to concentrate on your studies. But along with studies you have a new responsibility of handling your money. Till now you were given pocket money from your parents for your expenses but now since you have grown up you will have to handle your own money. You may still receive money from your parents but it is up to you how to spend this money.
Today there is a rise in the rate of inflation and things are becoming more expensive then before. So it is time you must learn the difference between needs and wants. Many college students do not know how to handle their finances. Till now your parents fulfilled all your wishes from expensive clothes or shoes or mobiles but it is now your responsibility to value money. If you learn the basic principles of finance at this age then it will be useful to you in future, after all you are going to face financial issues once you are out of the college. So now is the time to learn how to handle money.

Students only think that money is to spend and they are always ready to spend it, but this is not correct, you must also think of saving and earning. Students also misuse credit cards and think that the credit limit gives them the permission to spend as much as they want. They are not aware that after all they have to repay the money back and that too with interest if they fail to make payments on due dates. Students think that banks want them to make use of their money but the truth is that banks are there to make money and they will take their money back anyhow. It is time to learn to value money and know the working of many financial products. The following financial tips will help college students to manage their finances and learn some rules of handling money:

1) Do not spend unnecessary:

Spending is a habit and once you get the habit of spending you will find it very difficult to leave it. So try curbing your expenses and try to spend less. Differentiate between necessity and luxury. Always keep in mind that it is very easy to spend but very difficult to earn. So buy things only if necessary.

2) Save more:

Saving is the main principle of finance. Without saving your financial plans will not work. Savings will help you in the time of emergency. Try to save on books, food, clothes and other items of use. You can refer to books from the library or borrow it from your friend instead of purchasing them, always eat home food this will save a lot of money, do not go for branded clothes or other accessories these good are very expensive. If you spend less you will save more and the more you save the more money you will have at your disposal.

3) Make a budget:

Try to make a budget and spend only from whatever money you have. Keep a record of all your expenses and maintain a book of records and write all your expenses in it. This will ensure that you do not spend on unnecessary things. Also write you incomes in form of pocket money, birthday gifts etc. See to it that your income is more than your expenses.

4) Do not use a credit card:

It is found that credit cards are the main culprit in increasing debt. Many people specially college students find it easy and convenient to use credit cards but they forget to make timely payments and thus fall into debt trap. At this age it is not good to be in debt after all you do not want to be burdened by things other than studying. Use credit cards only in case of emergency. If do want to carry lot of cash then try to use debit cards rather than credit cards. Debit cards will limit your purchases and in this way reduce your expenses.

5) Never borrow money:

Some students are of the habit to borrow money from their friends and never return it. This is a very bad habit as it will give you a bad name and people will never lend you when you are in real need of money.

6) Work from home:

Student can work from home or take up a part time job in their free time. In this way you will increase your income and you will know how hard it is to earn money. You can start giving tuitions or work in a restaurant or in a call centre for extra income. Make sure that you do not spend the extra income you earn, try to save this amount in your savings account, this money will be useful in  time of emergency.

7) Shop from places that offer discounts:

There are many places where students discounts are given so shop from places where these discounts are available. In this way you will save a lot of money.

8)  Pay your bills on time:

In case you have taken any credit then pay all your bills on time. If you do not pay your bills on time then the credit company will charge you interest with increased rate, this will be an extra burden to you.

9) Try to get scholarships:

College students having an excellent student grades or performance record may qualify for scholarships or grants  from colleges or various institutions. So try to get these scholarships and save money on fees and books. Grants and scholarships are a better option than students loan as you do not have to pay them back.
10) Don’t be with people who spend much, they will only make you spend more. So form your own group and teach them to spend less and save more.

11) Lead a simple life:

Do not waste money on unnecessary things, spend money only on the things which are really useful to you. Also reduce your travel expenses by using a cheaper mode of transport like buses, trains etc. You can always go for a movie or a night club but try and find out how you can enjoy them at a minimum cost.
The above tips will help college students manage money and learn to put their finances in order so they can focus on their studies rather than their wallet. College is the time when students learn from their mistakes and learn to manage their lives. So as far as possible learn whatever you can from your college life, if you face any difficulty then you can always approach your parents or friends or even teachers for help. Make sure you start your financial life after college without any debt and more of savings. This will make your life after college safe and secure and you can face the world more confidently. If you develop good financial habits in college then you are likely to have good financial habits for life.