Best Financial Advice for Students

Many college students get amazing grades in school, but fail when it comes to personal finance. Many take out student loans and don't fully comprehend that they are going to have to pay it back later. They think that they need everything now and don't realize that they are in college, meaning that you can't necessarily have everything that you want.

Here are a some tips and ideas that you can use to avoid flunking personal finance.

1. Start with a budget. Write down what you think you'll spend in a month and then check to see how close your estimate was. Budget your expenses and bills as well as groceries and other necessities. Don't forget to add fun things to your budget such as going to the movies and eating out with friends.

2. Try a budgeting smartphone app. It's not always easy to find time to come up with a budget as a student. There are a great (and free) budgeting apps and computer programs out there that can help reduce the time that it may take to do a monthly budget.

3. Limit credit card debt. Learning to manage your credit is important, and it definitely helps to establish a credit record for after you graduate. Many banks offer a credit building card that is perfect for students. There are also store credit card that don't have annual fees, and is less tempting to use all the time because it can't be used everywhere. You can also make a rule for yourself, if you want something that you can't afford then simply wait to get it.

4. Only take out loans for what you need. If a loan provides more than is truly needed, then you should pay the extra back immediately before it starts racking up interest costs.

5. Manage your meals. Meal planning can sometimes be difficult while you are in school. While on campus you can either bring food with you or find cheaper cafeteria food. For other meals find deals and coupons for the grocery store, stock up on cheaper foods.

6. Shop around for books. Buying new texts at campus bookstores may be a lot more expensive than other options. Check Amazon to make sure that you get the best deal. Amazon offers eBooks, rentals and used books and they even have an awesome program for students. You can get Amazon Student (same as Amazon Prime) for free, all you need to do is use your school email. Click Here for more information.

7. Part-time job for income. There are many places that hire students and accommodate their busy school schedules. There are often jobs available on campus too.

8. Watch out for hidden costs. Make sure that you know what you are getting yourself into when getting loans, buying books or even when signing up for a club.

9. Begin a savings account. Spend a little less each month and use the extra money that you have to set up a savings account. Put money away for a rainy day. 

10. Free Fun. Look for ways that you can have fun for free. Most colleges offer free activities that you can have fun, unwind and meet new people. College shouldn't be all work and no play, have some fun. 


What do you do to stay financially smart in college?