It’s September, which means most of the college aspirants are ready to transition into freshmen. While the prospects of fun, love, and building a career define the aspirations of most college students, having their finances organized is rarely a priority. And why not? Isn’t that a grown-ups’ thing? Not really, and in fact, financial mistakes you make during college can haunt you for several years in your adult life.
To avoid being a graduate with such remorse, here are some simple financial tips that will keep you ahead financially.
It’s tempting to borrow the maximum amount you can avail under a student loan. Who knows what college holds, especially in terms of expenses? However, this is one of the biggest mistakes students commit during college. More than 20% of Ipsos poll respondents repent their decision to borrow more than they needed in student loan.
The ideal strategy is to maximize the financial aid you can receive for a college education. Find out about federal and provincial financial assistance programs for college students. Ontario Student Assistance Program (OSAP) is an excellent example of provincial initiatives to make college education more affordable for students coming from economically weaker households.
Stationery is one of the top expenses for a college student. While it is necessary to have updated books, there are multiple options to lower your textbook or other stationery expenses. For instance, if your primary source for textbooks is the campus bookstore, you’re more than likely to spend at least a couple of hundred dollars extra every semester. Instead, look out for online sellers or find used books. Several sites like Amazon and eBay list a wide variety of used books. Additionally, sites like Chegg allow you to rent textbooks at a fraction of their original cost. Once you’re through with these books, list them for sale.
Being in college makes you eligible for a myriad of discounts at retailers, utility providers, and even banks. As a student, make sure to maximize your savings through discount hunting. It will probably take less than a day to identify all the discount schemes, so get started right now. Not only will it help you save money during college and university, but it will also help you become a financially-aware-spender for life.
One of the best ways to ease financial stress during college is to take a part-time job. You can find multiple job opportunities for college students. Start by asking around the campus, check student bulletins, and use your network. However, make sure that the job suits your college schedule. Most of the employers offer flexible work hours for students. Use this income towards daily expenses and leisure activities.
Roughly one in three Canadians regret not having a budget during their student life. Having a budget ensures that you spend less than you make and avoid unnecessary expenses. Keeping a budget doesn’t have to be difficult. You can use online expense trackers like Mint, GoodBudget, or Spending Tracker. Using a mobile app has its benefits. You can track expenses in real-time. Some apps even send a push notification if you’re close to your weekly spending limit.
Let’s be honest here. College students are the least prepared segment of customers to own a credit card. They are likely to treat it as free money, piling excessive debt throughout college. If you’re looking for your first credit card, we suggest choosing a card with a limit or opting for a secured credit card instead. Here are some tips for managing credit cards wisely.
Choose a secured credit card or one with a low limit.
Make full payments every month.
Consider a line of credit instead.
Most of the students overspend on entertainment. Developing a habit of eating out or partaking in social activities that cost money is a surefire way to financial ruins. Spending $15 on a movie ticket might seem alright, but these amounts add up to a couple of hundred dollars every month. Focus on entertainment activities that don’t break your bank. For instance, host a game night or rent a movie to enjoy with your friends. Similarly, look out for college activities during the weekend. There is nothing wrong with learning a new skill in your spare time.
College is a confusing period of life, and it is quite easy to get carried away. While we do not suggest not having fun, practicing a little financial restraint could go a long way in your financial success as adults. It’s even better if you can start saving a little and put these savings towards investing. You’ll reap the benefits of compound interest. Spending less than you make is the key to long-term financial success.
If you’re determined to manage finances during school and want to get ahead at the same time, click the button below to learn more about how you can save money.
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