Managing Money in College

Written by Nathan Woolard

The start of college marks many young adults' first steps into a world of greater independence. Students are able to make new friends, find new interests, and explore a whole new level of financial autonomy. So it follows that college is the perfect time to start developing practical money management strategies that will help throughout school and beyond:

• Budget, budget, budget! And stick to it! Compare your income and expenses to develop a monthly budget. Remember, it's best to underestimate your income and overestimate your expenses; you'll be happier with a surplus at the end of the month than a deficiency. 
• Use student discounts. The same student ID that gets you into the computer lab and the gym can also save you money on computers, appliances, groceries, transportation, or even dinner and a movie. It's always worth asking if a business offers a student discount. 
• Apply for scholarships. College is expensive, let someone else help pay the bill.
• Be realistic with loans. You've heard the saying "never eat anything larger than your head." The same applies here. In general, it's advisable that a student should not borrow more than they can
• expect to earn in their first year out of college.
• Use cash. It's easy to ignore your spending when swiping a debit or credit card, but handing over cash can create a sense of loss and make you reconsider an impulse buy. 
• Pay off your credit card each month. When you do find it necessary to charge a purchase to a credit card, don't charge more than your monthly budget allows. Carrying a balance over to the next month will result in unnecessary interest charges. 
• Take advantage of college cafeteria meal plans. Be smart when picking your plan; don't fork out for a three-meal-a-day plan if you know you'll be sleeping through breakfast. 
• Buy or rent used textbooks. Shop around. Your college bookstore isn't the only place you can find your textbooks. Many retail bookstores offer used books and rentals and will ship them straight to your door. 
• Carpool or use public transportation. Having a car on campus means you'll rack up extra expenses for gas, parking, and insurance. Consider using public transportation or riding with a friend, or make the healthy choice and walk or bike when possible.
• Hang out with friends who share similar budget constraints. It's fun to spend a night out on the town, but doing so too often can put a major strain on your budget. Rather than spending money on repeated nightly outings, stick to your established limits and find others willing to join you for a more low-key get-together. 

In the end, just be mindful. Pay attention to your spending and don't fall into any habits that you can't afford. Learning the keys to successfully managing your money in college will save you a lifetime of hassle down the road.