Money management guide for college students

Parents are responsible to help in developing money management habits among their kids from an early age. In college years, students should be very careful in managing their budget and saving. This article offers you tips which can help you learn good money mangement skills. You can download FREE e-book "Get Money Wise" to learn more.

Save First

* If you have been saving money to pay for college, keep it up. Saving helps you prepare for being on your own. To make it a lifelong habit start now by saving regularly.
* Pay yourself first. As soon as you receive a paycheck, allowance or financial gift, save some.
* Think of saving as a bill you have to pay.
* Collect loose change. Empty your pockets and wallet at the end of each day, and put the change in a container. Every few months, deposit the change into your savings account.

Spend Wisely

* Before you buy anything, determine whether you really need it, or whether it is available for less.

* Think about the difference between your needs and your wants. You need to eat and spend time with friends, but do you need to spend money on after-class trips to expensive coffee shops or dinner at restaurants?

* Know where your money goes. Add every dollar you spend for a month and keep track of what you buy. You may be surprised how much you spend and on what things.

Follow A Budget

* Following a budget is not easy. It forces you to make choices about what you will do with your money — without letting you spend more than you receive. It also helps you get the most out of the dollars you have.
* Once you create a budget, stick to it. Do not spend money on things that are not included in your budget unless you are willing to sacrifice another expense. Adjust your budget if it is not working.

Use Credit Well

* Credit is an important financial tool, but it can be dangerous. Talk to your parent or guardian about whether you need credit while at college. If you apply for a credit card or loan, be responsible so you do not negatively affect your credit.

* Decide exactly how you will use it. Use credit only for items you know you can repay each month.
* Pay bills on time and in full. Never skip a payment.
* Limit the number of credit cards you own. One or two is usually enough.
* Know the terms and conditions of your credit card or loan(s).
* Keep credit card and loan information in a safe place.
* Keep copies of sales receipts. Compare charges when your monthly statement arrives. Call your credit card company immediately if you see a discrepancy.

Stick With It

* College can be challenging. If you get off to a slow start, experience loneliness or find that classes are more difficult than you expected, do not give up. Take one day at a time. Talk to a professor or counselor when needed, seek help from classmates and adjust your goals if necessary. The important thing is to keep moving forward. Your persistence will pay off in the end.

Source: The USAA Educational Foundation.

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