Personal Finance for Students

• Chris The Grad
• 0 Comments
• November 17, 2024

By: Chris the Graduate 

College life is busy, full of classes, clubs, and (hopefully) some downtime with friends. But handling your finances doesn’t have to be another big stressor. A bit of planning can give you control over your money, help you save, and still leave room for fun! 

 Get Clear on Your Income and Expenses

First things first: know what you’re working with. Track your income (like part-time jobs, scholarships, or allowances) and compare it with your expenses. Here’s how to break it down:

• Essentials: Rent, utilities, groceries, transportation, and bills.
• Savings: Set aside a small amount each month – it could be as low as $20, but it adds up!
• Wants: Eating out, entertainment, new clothes, etc. (This is the fun stuff we don’t want to sacrifice, right?)

By dividing expenses into these categories, you can get a clear picture of where your money goes and identify areas to cut back if needed.

Pick a Budgeting System

Budgeting doesn’t have to be complicated. Here are two easy methods for beginners:

• The 50/30/20 Rule:
  • 50% on essentials (housing, groceries, etc.)
  • 30% on wants (dining out, Netflix, etc.)
  • 20% on savings or debt repayment (building up an emergency fund or paying off a credit card).
• Weekly Allowance: Decide how much you want to spend weekly after setting aside essentials. Put this amount in a separate bank account or withdraw it in cash.

Choose a method that works for you, or even try a mix. Apps like Mint, You Need a Budget (YNAB), or PocketGuard can make it easy to track spending on the go.

Cut Costs Without Cutting the Fun

College life doesn’t have to be expensive. Try these cost-cutting hacks that don’t leave you missing out:

• Meal Prep & Groceries: Instead of eating out, save by cooking meals. Buy groceries in bulk or split with roommates to save even more.
• Student Discounts: Tons of places offer student discounts! From streaming services to clothing stores, always ask if there’s a discount available.
• DIY Entertainment: Look for free events on campus, host movie nights, or join clubs for social activities that won’t cost much.

Save Smartly for the Future (and Unexpected Expenses)

Start a small emergency fund for unexpected expenses like car repairs or last-minute school supplies. Even saving $10 a week will add up over time and give you a cushion if something unexpected comes up.

Set Financial Goals (and Reward Yourself!)

Whether it’s saving up for spring break or a new gadget, setting goals helps you stay motivated. Treat yourself along the way – a small celebration when you reach a savings milestone can keep things exciting.

Use Credit Wisely (and Don’t Let Debt Pile Up)

Credit cards can be useful, but it’s easy to overspend. Keep these tips in mind:

• Only use credit if you can pay it off each month.
• If you have student loans, keep tabs on what you owe, even if payments aren’t required until after graduation. Avoid adding more debt unless it’s essential.

Keep Checking In

Personal finance is a marathon, not a sprint. Every few months, check in on your spending to see if your goals still align. Don’t stress if you make mistakes – building financial habits takes time! By taking control of your finances now, you can set yourself up for a secure future without sacrificing the best parts of college.