As a student, you may feel college is going to be an exciting phase of your life. You will obviously spend most of your time buying necessary textbooks, stationery, clothes and finding the right dormitory for yourself. However, you also need to be responsible on how you spend your money because you cannot always rely on your parent’s wallet. Andrew Corbman is a prominent financial advisor from Ashburn and President ASC Financial, Inc. For last 20 years, he has been assisting people in the region at a personal level to develop their wealth, overcome financial difficulties and effectively manage their money matters. He says it is important for students to keep in mind the following tips when it comes to managing their finances:
-
Devise a budget
This is the most important task you need to do at the onset. On one hand make a list of your sources of income, which could include money you earn from doing part-time jobs and parental allowance. Next write down all your expenses for a particular month. Such costs could be in the form of items for personal hygiene, the amount you spend on food, college supplies and laundry. Identify areas where you can reduce such expenses to that you do not run into debt.
-
Distinguish between your necessities and wants
After spending some time settling down to college life, it become easier for you to recognize the expenses you need to incur. This can help you to prepare an effective plan on how you are going to manage such costs. Andrew Corbman says at this stage you become aware of how money you need to allocate towards laundry, food and lodgings.
-
Open a saving account
Most banks have branches near campus that allow students to open savings accounts where they can deposit money and checks they receive from their relatives. These financial institutions also permit such freshmen to make withdrawals and transfer money without having to incur fees. However, while opening such an account you should make it a point to keep an eye on their balance so that you do not make the mistake of overspending.
-
Do not run into credit card debts
While in college, you may find it easy to use your credit card to make purchases. However, you could fall in the trap of incurring huge debts if you are not careful. It is important for you to find out ways to build your credit worthiness at this stage of your life instead of overextending.
-
Do your research on financial loans for college students
Most students have a tough time trying to repay their ever-increasing educational loans by the time they graduate because the declining remunerations in the job market. It is important for you to know the amount outstanding on your student loan and come up with a plan to repay this debt.
Andrew Corbman says college life can be a very expensive time for you. However, if you are able to master the above money management skills, you can easily graduate without incurring huge debts. Learning you spend within your budget at this stage of your life can help you to become more responsible with your financial matters later in life.