10 BEST MONEY MANAGEMENT TIPS FOR STUDENTS

Having money management skills is very important for every student. Managing money can be tricky at times especially to new students who have never had a full responsibility on how to manage money. Solution Essays is here with tips to educate students on how they can manage finances to protect themselves from poor money management which can cause large effects. Having good financial management skills will help you even later in life.

Have a bank account

Having a bank account is very important for a student when it comes to money management. A bank account will help you in managing your finances. You should start off with a savings and checking account.

Set financial goals/limits

Setting financial goals can be rewarding. This is because the goals set will help guide you on the way forward. Write down all your financial goals with milestones to help you achieve them. Prioritize all the goals and come up with a plan of action. Whenever you are setting financial goals, always set realistic goals which are achievable. Set goals that are reasonably attainable.

Create a budget

A budget is very important when it comes to money management. Create a realistic budget and follow it strictly. A budget helps you avoid buying things you cannot afford, missing payments or failing to pay your loans on time. Making this mistakes can affect your credit history, thus making it hard to borrow or purchase a car, rent an apartment and also get a job. Ensure you create a budget and follow it strictly.

Avoid overspending

As a student, avoid overspending as this will help you in money management. Avoid spending on things that do not add anything positive to your life. Only spend on what you really need by being able to differentiate between needs and wants.

Avoid over borrowing

When it comes to borrowing money, only borrow what you are sure you will be able to pay. When it comes to borrowing, only borrow what you really need. This means that you only borrow for what you need and not what you want. Learn the terms of your loan plus how the interests adds up. This will help you determine how much, and when you will make the payments. It will help determine how much interest you will have to pay and what effect it will have on your payment.

Rent or buy old text books

In most colleges, certain textbooks are used over and over every year. This means you can buy used textbooks. Buying used books is cheaper than buying new ones. You can also rent books from a book store. You can also sell all the text books you have and not using. You can also rent them to other students who might need them. This will help to reduce your expenses and thus a great money management skill.

Minimize student debt

As a student, it is important to reduce student so as to manage your money well. Ensure you spend the money you get from student debt on the right things such as food, housing, books, and tuition fee. To minimize student debt, ensure you borrow only what you require. By minimizing student debt, you reduce the amount of money you will have to pay when you finish school and get employed.

Use online money management apps

Money management can be a hard task for any individual. The good news is that there are apps you can install in your phone, tablet or computer to help you conveniently manage your money. Apps such as mint are very convenient when it comes to money management. This app will allow you to upload your bank account and expense information so you can manager all your accounts in one place thus you can do proper budgeting.

Cook your meals

Eating food from restaurants is five times more expensive than cooking your own food. You can purchase food stuffs from food stores instead of eating from the restaurants to save a lot of money. Learn to make your own meals as this is a skill that will help you for life in life outside college. You can make cooking fun by trying new recipes. Making food at home helps in money management as well as in ensuring you are feeding on a healthy diet.

Select the best credit card

Most credit companies are there to take advantage of new and inexperienced students. They are aware of the fact that most new students are excited about loan money as they view it as free money. Most students end up using their credit cards carelessly resulting to high interest payments and late payment. When it comes to selecting the best credit card, select the one with points or cash back rewards.

Having a credit card is more convenient than using cash though it encourages impulse buying. This can lead to large debts even before you realize it. Thus it is advisable to plan on how to spend money and how and when to use credit cards. You should also set a low spending limit.

Apply for scholarships

Applying scholarship is an amazing way to reduce what you spend on tuition fee. You can check for scholarship on sources such as scholarships.com. You can get information on many colleges offering scholarships and financial aid. Select the one that is most appropriate for you and your financial situation. Apply for all scholarship either small or big. Do not ignore smaller scholarship opportunities as you have better chances of getting the smaller ones than the bigger ones.

By using the above money management skills, you can be sure to make the best financial decisions that will impact you school life and even life after school in a positive way. Try using this tips and you will never regret all the decisions that you made while in school.