Finances 101: The College Edition
We all know college is supposed to be the ‘golden parachute’ right? When you graduate you’ll get this great job and make awesome amounts of money so you don’t necessarily SAVE while in college, most people usually SPEND thinking this magical job will pay it all off.
Well for most students that magical job does not come soon enough to save their credit or financial situation and students that attend graduate school are swamped with even larger expenses for school.
With the help of my Twitter pals I have compiled a list of simple things that can be done to keep you on track while in school as well as things you should remember when spending. Don’t wait until graduation to attempt to keep finances in order, start NOW. Your responsibility now will help form discipline and can also be a factor in the hiring process for your ‘dream job’, employers do check credit scores!
1. Don’t rely solely on loans and credit cards, maintain a job, even if it is for a few hours. This helps put actual cash in your hand, manage time, and keeps your resume active for employers to review.
2. Don’t borrow $1 more than what is absolutely needed for tuition and books, work for everything else.
3. STOP using credit cards if you have begun, don’t get any if you haven’t.
4. If you are using credit cards ask yourself, “what is my income to pay these off in the future?”
5. Create a budget to balance wants vs. needs. Wants should only be bought with cash after needs are paid for.
6. Understand the fine print of your loans FULLY, what it will take to repay them, and when they must be paid.
7. Rent only where you can afford to live! A cool apartment does not trump being debt free or the house you will need a good credit score for in the future.
8. Know your means, don’t live above them or at the same level, live below them and save!
9. Big refunds may look nice but remember most of that money must be paid back with interest.
10. Attempt to put yourself in a position where your final refund check can be saved for after college expenses.
We all know college is supposed to be the ‘golden parachute’ right? When you graduate you’ll get this great job and make awesome amounts of money so you don’t necessarily SAVE while in college, most people usually SPEND thinking this magical job will pay it all off.
Well for most students that magical job does not come soon enough to save their credit or financial situation and students that attend graduate school are swamped with even larger expenses for school.
With the help of my Twitter pals I have compiled a list of simple things that can be done to keep you on track while in school as well as things you should remember when spending. Don’t wait until graduation to attempt to keep finances in order, start NOW. Your responsibility now will help form discipline and can also be a factor in the hiring process for your ‘dream job’, employers do check credit scores!
1. Don’t rely solely on loans and credit cards, maintain a job, even if it is for a few hours. This helps put actual cash in your hand, manage time, and keeps your resume active for employers to review.
2. Don’t borrow $1 more than what is absolutely needed for tuition and books, work for everything else.
3. STOP using credit cards if you have begun, don’t get any if you haven’t.
4. If you are using credit cards ask yourself, “what is my income to pay these off in the future?”
5. Create a budget to balance wants vs. needs. Wants should only be bought with cash after needs are paid for.
6. Understand the fine print of your loans FULLY, what it will take to repay them, and when they must be paid.
7. Rent only where you can afford to live! A cool apartment does not trump being debt free or the house you will need a good credit score for in the future.
8. Know your means, don’t live above them or at the same level, live below them and save!
9. Big refunds may look nice but remember most of that money must be paid back with interest.
10. Attempt to put yourself in a position where your final refund check can be saved for after college expenses.
Also check out Keith Reed a journalist who blogged about my college finances question as well. His thoughts are found here at http://keithreedsmoneycorner.blogspot.com/
Hope this helped! Put these tools to use and please leave some of your own tips in the comments!
Hope this helped! Put these tools to use and please leave some of your own tips in the comments!
KG
1 comment:
We received a few more tips that I wanted to share!
-Renting a home instead of an apartment with friends may be cheaper and also a way to prepare for homeownership responsibilities that you don't have in an apartment.
-Student loans are not ALWAYS bad when they are neccessary. Research the interest rates and fine print. It may be a better alternative to a credit card which gains interest right away.
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