As a college student, you’re going to finally feel like an adult. You’re going to get out of the house, live on your own, and work toward a better financial future. Not only is college going to make you feel better about yourself, you’re going to become a better person.
When it comes down to money as a college student, there are a lot of things that you may not know about, and I wanted to point out a few things that can help you better understand your finances, so that you can live a better, debt-free life.
Know everything about your bank
Your bank is more than just a place that holds your money. If you’re going to have a lot of money stored in your account, I would recommend that you look into a money market account. These accounts are going to give you more on your money in terms of interest. Your local bank generally just gives you a lousy percentage. There’s nothing better than watching your money grow!
When I say that you should know your bank, I want you to know what fees there are, what you’ll be charged if you overdraft, etc. You’ll want to find a bank that has as little fees as possible. Most banks that are good will give you a free checking account if you’re a student.
Know how much money you have
Yes, it sounds silly, but if you overspend what you have in your checking account, you’re going to pay some hefty fees. A great way to keep track of your spending is simply by either logging into your online bank account, or by writing down what you spend each day, and comparing it to what you have in your account.
Just watch your spending
Many people go into debt because they are compulsive spenders. If you can hold back on purchases, or refrain from purchasing, you can watch your money go a long way. For example, if you know you’re going to spend a lot going into a store, bring cash only, or look into getting a prepaid credit card. Both of these items will help you out tremendously when it comes to controlling a budget.
Just watch your budget
Sure, you’re going to have to eat, and yes, occasionally buy some clothes, but you’ll want to watch what you spend your money on. There’s no need to go out, and purchase name brand clothes, when you can get the same looking shirt for 75% off. Know how to budget, and you can save a load of money.
Money can be tight in college, and as long as you know how to manage your budget, you shouldn’t have a problem maintaining a positive bank account. Follow these tips above, and you should be just fine.