Managing Your Money in College

Hi guys!
I hope you're all enjoying your summer vacation, I know I am! But let's talk about something serious: money. In college you have all sorts of new freedoms and one of them is being able to manage your own money. When you turn eighteen you are also eligible to have your own credit card and this can be a huge issue if you misuse it. While you should have fun in college, you shouldn't be spending all your money in one semester. I know it's summer but having this knowledge now, will better prepare you for when you enter college later in August. Here a just a few tips for you on how to manage your money in college.

1. DON'T Sign Up for a Credit Card
   Let's be honest, credit cards are cool. They eliminate carrying cash around but they can also be extremely bad for you. When you use a credit card you're just swiping the plastic through the machine and aren't really keeping track of how much you spend. This can lead to huge problems down the road if you rack up a bill you can't pay. No one wants to be in that situation and normally it takes something like that to make you realize you need to be more conscious of how you spend your money. My advice to you is not to even apply for one. At some college campuses during the 'Freshman Week' or whatever your school calls it, credit card companies might be there to try to get you to sign up. You walk by the booth, you hear the 'amazing' things the company can do for you and you think to yourself, I'm an adult and having a credit card will help show that. So you sign up for one. A month later you get a bill for items you don't even remember buying and then you're in a bad situation and your credit is horrible. This can effect you later on in life when you're trying to get loans for big ticket items such as homes and cars. Don't put yourself in that situation.
   Instead, try these other methods of payment. Debit cards for example are a great alternative to the credit card. You put money in your checking account and then when you swipe your card, the money is automatically taken out of your account. It's a lot less work then having to deal with credit card bills but it is a bit riskier. If you lose your debit card and someone finds it they could use it and you might not be able to get any of your money back. Also, if you spend more than what is in your checking account, you might be subject to fees by your bank. So while having a debit card is better way to keep your money in check, it can also lead to other problems. If you do decide on a debit card, just be careful.
   Another way to have access to your money is to co-sign with your parents. Since all banks are different I highly suggest that if this is the route you take, you talk with your parents and your bank to make sure all rules and procedures are clear.

   You could get a pre-paid credit card. Different companies have different types of pre-paid credit cards. The basis of the pre-paid card is that your parents put money on your card and once you use it, the money's gone until more is reloaded onto it. Different companies have different policies so make sure you shop around before settling on one.

   Or just consider a gift card. If you're going on a trip and don't want to carry cash around with you then think about a gift card. You can load as much money as you want on it and it works basically like a credit card. Only with a gift card, you have a limit on what you can spend (which is different than a line of credit), so as soon as you spend all the money on the gift card, it's gone. It's a good option but be careful of hidden activation fees and things like that. Read the fine print before you decide to get one.

All in all, if you don't have a steady source of income, then don't get a credit card. If I were you, I would wait to have a stable good-paying job before I even considered applying for one. But even when you do have your card with a good-paying stable job, that doesn't give you the right to go on a shopping spree on 5th Avenue. Just remember that you have a card, but that doesn't mean you have to use it.
  

2. Budget Your Money
Budgeting your money is extremely important, especially in college. Whether you get a weekly allowance from your parents or have a job that pays you, you should be smart about your money and not go spend your paycheck on the first thing that catches your eye. By seeing how much money you have it will help you figure out how much you want to save for a Black Friday Shopping Spree or just to save for a rainy day. You should see how much income you have then decide on how much you want to save. From there you can decide what you want to spend your money on.
   If you're not really looking for a budget but want to save there are a few good habits you could start.  One really good habit to get into is when you get your money, to take half and allow yourself to spend it while saving the other half. If you can't save half then put ten dollars in an envelope every time you get paid (every week is even better) and after a semester you will have a nice amount of change to use to pamper yourself with for getting through finals.

Budgeting sounds scary but you can do it! All it takes is a little planning and by no time you'll have some extra money to spend.

3. Talk to Your Bank
If you have a bank account (which at this point in your life you should) go have a talk with them. A lot of banks will help you manage your money. If you're concerned about going to talk to your bank about something you might not completely understand, go with your parents! Yes, go with your parents or someone you trust. Your parents and mentors are your number one guide to life so why not use them? Not only that, but I'm sure they'll be happy knowing that you have an interest in managing your finances.

These are just a few tips I use to manage my money and will continue to use while in college and probably beyond that. If you get creative, I'm sure you can find other ways to manage your money so you can afford that new laptop you've been wanting forever or that designer bag. Managing money isn't hard, it just takes time, effort and commitment so keep at it!

All the best!- Becca