Studying and keeping track of finances is a stressful responsibility. You once relied on your parents and other family members to support you financially.
As you navigate the adult world, you must also take control of your finances. Understanding how to support yourself financially is a huge step! Read some of the best ways you can manage your finances as a college student to set yourself up for a bright future after college.
Use a Journal or Calendar To Track Income and Spending
Organization is the key when it comes to managing your finances. It’s not a simple task at first. However, staying organized can make the process much easier as you grow as a student and a soon-to-be-graduate.
A money-tracking journal or calendar is a great tool for tracking all your income and spending. At the end of the month, you can determine how much you saved, spent, and earned. Then, you can decide how to adjust for the next month!
Establish Checking and Savings Accounts
The next step to properly managing your finances is to have a checking and savings account. The separation between checking and savings is essential. It allows you to create a clear line between the two and always know your financial status.
If you have an income, arrange for direct deposits to fall into the checking account. This makes it easier to spend using a debit card.
The savings account is solely for savings purposes. Don’t dip into your savings unless it’s an emergency. These funds will help you with future rent payments, a downpayment for a house, and any other large purchases that come your way.
Apply for a Credit Card
Establishing credit is the best way to prepare yourself for the future. Banks and credit unions will examine your credit score to determine if you’re a reliable individual who will pay back their loans.
You may need a few tips to increase approval odds for a credit card if you haven’t done it before. Then, make on-time payments and watch your credit score thrive!
Arrange Direct Deposit Payments
Rent, streaming services, and university payments are some of the payments that students must make each month. An easy way to never endure a late fee is to set up direct deposit payments. Instead of worrying that you may forget to pay something, you can rest assured that you’re never behind.
Gain a Better Understanding of Student Loan Debt
Soon, you won’t be a student anymore. Student loans will set in, and you’ll need to begin making payments. Log onto your designated student loan accounts before that time arrives.
Examine the loan amount, the interest rate, and how long it will take to repay. When you have a grasp of how much money you will pay back in the future, you can better prepare yourself as you’re attending school.
Consider placing money into a savings account designated to pay back student loans. Gradually add money as you can. Once you graduate, you have ample funds to support the first few months or even the first year of loan payments.
Becoming an independent, self-reliant adult is a necessity. During this period of your life, it may feel like you’re in a strange in-between state. Nevertheless, following these methods to manage your finances as a college student will prepare you for the next chapter of your life.
