Are you a college student struggling to find the time to manage your finances? You are not alone as most students do get into debt problems during their college life. Irresponsible management of your finances at this stage in your life you can lead to major money problems in the future so it is important that you organize your finances now to make sure you get into good habits for the rest of your life. Below are five important tips that are designed to help students survive college and have a financially healthy future.
Build Your Credit History
This is the best time to start building up your credit history. Without a decent credit history, you will not be able to take a mortgage or a car loan in the future. Worse, you might even have to pay a penalty for a loan application with short credit history in terms of higher interest rates. To help build history take out apply for a credit card, even if you don’t use it. However try not to use the credit card to much as this is one of the most common ways in which a student can get into debt.
Lead a Frugal Life
As a young adult, this is the best time to start building the frugal habits that will help you to survive in later life. It will help you to maintain financial stability so try to create a budget that fits your lifestyle. This will help you achieve your financial goals, hopefully without starving or going without the essentials!
As an example, if you invited some guests over this weekend and need some extra chairs, borrow your neighbors instead of buying them as you may not need these things in the future. This way, you can entertain your guests without wasting money. You can use the money saved for other more necessary purposes.
Control Your Debt
If you plan to take a student loan to help pay for your higher education, it is crucial that you shop for a low interest loan. This will help you keep your of debt lower. If you decide to apply for a credit card then work with the company that offers the best interest rates – many offer better rates for students.
If you do find it difficult to manage your student debts within your budget then go see a debt counselor as soon as possible. This will help you solve your debt problems and many colleges and universities offer this advice for free on campus.
Earn Money from Your Skills
You can try to make extra cash during your free weekends. Perhaps as a bartender or working in a local nightclub as a glass collector. Using your skills learned it could even be possible to give tuition to children in the area – which will help you to hone your skills and earn extra money at the same time. The additional dollars will help give more flexibility to your budget whilst at college.
Avoid Making Late Payments
Make sure that you always pay your bills on time. If you cannot pay bills on time you will find that many lenders could impose late payment fees on you which will increase your debts. In addition to that keep an eye on the latest interest rates on your loans as these may increase which could cost you more money than you originally planned for.
As a last piece of advice, and besides the points mentioned above, you should start saving money from today. This will help you reap the benefits when you enter the workforce once graduated and in addition you can also use the money saved to pay for any expenses until you find a job.
About the Author: Jenny Barter is a financial analyst currently working in New York. Jenny also advises students who need finance advice to subscribe to the Wall Street Journal Student Edition as the newspaper contains hints and tips on a weekly basis, as well as internship opportunities in some of the leading Wall Street companies. For more information and the best deals please check this WSJ Student Discount website today.