Managing Your Money
Creating a budget and sticking to it doesn't sound like a lot of fun to most students. However, if you've never had to worry about your finances, this is a good time to start practicing for the real world.
A few basic tips:
- There is a difference between a "need" and a "want." Needs are things you must have...college textbooks, tuition, housing, food, clothes, and so on. Wants are, the latest music CD, a video game, and that trendy new jacket. Think about what you are spending - do you spend too much on what you want and run out of money for what you absolutely need?.
- Don't spend what you don't have. Avoid using a credit card for all but emergencies. That new outfit is not an emergency.
- Buy used when possible. Used textbooks can save money. Garage sales, second-hand shops and discount stores often have very reasonable prices for items you need.
- Avoid impulse buying. Buying because the price is right or it looks good at the moment may lead to buyers remorse later when you realize it doesn't fit right, it the wrong color, or wasn't really what you wanted in the first place.
- Have a budget. There are a lot of computer programs out these days that will help you develop a personal budget. Organizing your spending will help you save a lot of money. Financial software packages developed for the non-accountant are available at many of the larger computer and office supply stores.
- Don't grocery shop on an empty stomach. If you have to go to the grocery store, make sure you eat before you go to keep yourself from buying things just because you are hungry.
- Keep your receipts. It will make returning an item you don't really want later much easier.
- Plan your fun. If you know you are going to want to go to a concert or buy a CD work a savings plan into your budget.
Check out the links provided
in the table on the right to learn
more about money management.