Here, I will talk about some financial tips for college students. If you are a college student, you are probably concentrating on your studies and trying to get an education that will benefit you in the future.
One thing that you may not be thinking about is how to handle your money. And failing to do so can leave you in a pretty big financial mess by the time you are out of college.
It is important that you take control of your finances now if you want your financial future to be bright. The following are some financial tips for college students that can help you with your finances to avoid any college financial disasters.
5 Financial Tips For College Students
Tip #1 – Only use credit cards if you can afford to pay it in full
The first financial tips for college students are about using credit cards and debts. Once you get a credit card, it can be all too easy to start racking up the credit card debt. This is a bad way to start out and you will probably end up with bad credit if you are using credit cards all of the time.
Remember, the money you spend on credit cards will need to be repaid. It is best if you save your credit card for really valid emergencies instead of buying that new pair of shoes or paying for an evening out.
Peer pressure can be a big factor especially when you are with the not so financially conscious guys. If you are already financially literate at this early age, you will become rich. You will have more time to build up your wealth by leveraging the power of compounding interest.
Tip #2 – Pay Off the Balance Every Month
It is also important that you pay off your balance in full each and every month if you have a credit card. Let me say it again, pay it in full each month. Learn how to make a budget and then you will learn how you can determine how much you can afford. This way, you will be able to control your spending each month. And you will be able to pay your credit card bills in full.
Leaving a balance on the credit card can result in you paying extra money on interest. So, you will save money if you pay off the balance every month. This will also keep you from getting in credit card debt over your head as well. And you will also be able to claim the perks on your card by gaining points that you can use.
Tip #3 – Pay Bills on Time
Paying it full is not enough. You also have to pay the balance on time. Now is the time to start building your credit history. And you can do this by always paying your bills on time. If you fail to pay your bills on time, it can get pretty expensive. Many companies will charge late fees (plus the penalties) if you do not pay on time and your interest rates may go up as well, costing you even more money for being late.
Tip #4 – Start Saving Now
Another financial tips for college students are to start saving early. This is in connection the leveraging the power of compound interest. Many college students do not realize how important saving really is, but if you can start saving while you are in college, you can reap from great benefits when you are older.
Saving now will get you in the habit of saving, you will earn money from the money you save. And you will have extra money set aside in case of any emergencies as well. It does not matter how much.
Just save some of your money. Do not pressure yourself to save a certain amount each month yet. This is because you still don’t have an income. Just save some. Any amount stashed away for your future is pretty much better than nothing.
Tip #5 – Look for the Best Checking Account
You can actually save a great deal of money if you look around and find the best checking account. Look for an account that has no fee for starting an account and no minimum balance.
You may also want to check into any debit card fees, and fees for deposits of withdrawals. Some banks will actually offer totally free checking for college students, so take advantage of this and you can save a great deal of money every year.
I hope you gained knowledge from the financial tips for college students laid out above. My final message to the college students is that college life is exciting and full of life lessons. Now is the perfect time to be carefree on your decisions. But now is also the very best time to ensure you future by taking care of your financial status and educating yourself about handling your finances.