8 Finance Tips for College Students

Never having enough money is something you never quite get used to--even while in college. The following finance tips may help.

Spend Less on Food

Because you don’t have a lot of discretionary cash, you need to limit your purchases. Instead of eating at restaurants every night, you should eat in the cafeteria as often as possible, and when you don’t have the time, you eat in your dorm room. Buy a small refrigerator and hot plate for your room and start cooking your own meals. Buying groceries from a store is much less costly than eating out. Being frugal is all well and good, but you may soon get bored with it, so treat yourself to a restaurant meal once a week--but opt for a less expensive eatery, and don’t order the most expensive meals. The ‘night out’ will break up the tedium without breaking the bank.

Use Credit Only When Necessary

Having a credit card to pay for things is speedy and extremely convenient--in some cases it may be too convenient. It’s far too easy to get carried away while you’re shopping if you don’t have to pay cash, but instead simply whip out your credit card. Unfortunately, you will receive a bill for those purchases and then you’ll have to pay, probably with interest. Instead, you should reserve your credit card use for times when it’s absolutely necessary.

Pay Off Credit Cards

If you do use a credit card, don’t let the amount you owe build up. You should make every effort to pay off what you owe at the end of each month. If you allow a little bit to carry over then the interest will multiply, and before you know it your monthly bill will be huge and you could end up only having enough money to pay the minimum--when you do that, the majority of what you pay goes toward interest, and the amount you owe won’t be reduced by much.

Pay On Time

Whether it’s a credit card or monthly bills, such as rent, food, or heat, pay your bills on time. If you don’t, there’s a very real possibility of being charged a penalty for late payments. On top of that your credit rating will suffer, because whether or not you pay your bills on time is one of the chief criteria used by credit bureaus to establish your credit score.

Use a Debit Card

Using a card to pay for purchases instead of carrying cash is not only convenient, but reduces the chances of losing your money. Fortunately, there’s a way to carry a card without having to worry about going into debt--use a debit card. A debit card looks and feels like a credit card. The major difference is that with a debit card your expenditures are limited by the amount of money you actually have in your bank account--you never have to worry about overspending.

Buy Used

In order to save a little bit of money, consider buying used instead of opting for the latest and greatest. Visit thrift shops to pick up used clothing and furniture. Most thrift stores carry a wide variety of useful items, some of which are nearly new. You can also save some money by buying used text books. Frequently students will sell their old text books and you can pick one up for a fraction of its original price.

Start Saving Now

Although money is usually pretty tight for college students, it would be a good idea to start saving for your future right now--it’s never too early to begin saving money. If you get in the habit of putting a little aside each month and stash it in an interest-bearing savings account, your money will earn more money. Watching your money accumulate will hopefully give you the incentive to continue saving throughout your life.

Create a Budget

The best way to keep track of your finances is to create a budget, and stick to it. If you are realistic when you make it out, you shouldn’t have any trouble abiding by it. Having a financial plan is one of the best ways there is of making sure you live within your means--providing you exercise the will power to adhere to it.

Guest post from Taylor Harris. Taylor writes about the best online colleges for BestOnlineColleges.com.