I thought how I wish someone would have told me this advice when I was going to College. I could have avoided some major financial issues. As I read the article there are ideas and tips I believe we all could apply.
Tip #1 - Know your Financial Aid Options.
This is a great tip for all College Students. There are so many options to help pay for the cost of your education. I first thought, well this doesn't apply to me. But in fact, it does. It applies to anyone that has children or grandchildren whom they would like to see go to college. With college tuition on the rise, and who know what the government grants will look like when my children go to college, it is my responsibility to be prepared. Just like other parents with young children we must be ready for that time. I'm afraid it will be here fast that we would like.
One of the ways, I have began to save for my children's education is using Upromise. It is an amazing website that allows you to get cashback on purchases you make on the internet. Most stores is 5% back. If you spend $200 at Walmart.com on school supplies this year, it would be give you back $10. That doesn't seem like much but if you think of all the online purchase you make within a year it can add up quickly. Last year, I received almost $500 in cashback rewards. Once you have this money in our Upromise account, you have several options to cash it out. I use the College Saving account for my children. I'm taking money that I didn't have before and putting it away for my children's education. That is amazing if you ask me.
(ps I'm not getting any compensation for this recommendation. I just think it is an awesome site everyone should use.)
Tip #2- Budget, Budget, Budget
Everyone needs to have a Budget. We all need to know what is coming in and what is going out. I found that with a simple Excel Spreadsheet I could easy see where my money was going each month. It could track expense and see where I was falling short and what I could eliminate. Budgets don't have to be complicated. They can be a piece of paper. Just some way to track where your money is coming from and where it is going.
Tip #3- Try the Envelope System.
I personally love this idea. I learned about this idea several years ago from a friend. It helped me get out of debt and keep my spending in check. I like what the article says.
"Keep it easy to stay within your budget by using the "envelope system." Under this system, you set a budget for the week, the month, or the next pay period. You might decide, for example, to spend $200 on groceries this month and $50 on gasoline.
You put that money into envelopes marked "groceries" and "gas," and you pay for those expenses out of those envelopes. Once you're out of money, you're out -- no more groceries until your next pay period.
This system keeps you from over-spending and prevents you from accidentally going into debt. When you can physically see how much cash you have left, it's a lot easier be careful with it."
Tip #4- Steer Clear of Credit Cards
Credit Cards can be so good to help build and establish credit. They can ruin your credit just as fast. The article says, "Whenever possible, try to avoid charging your expenses on plastic. Being able to "afford" an extra concert ticket or fancy dinner isn't worth having to work extra hours to pay down sky-high interest rates later. You're already probably going to emerge from school with some student loans to pay off -- don't saddle yourself with extra payments from credit cards."
I says stay far away from them while in college and even when you are out of school.
Tip #5- Establish Credit.
The article talks about using a Credit Card to establish credit. As you may have guessed, I'm anti-Credit Cards for college students. Now don't get me wrong, credit cards have their place. But they must be used right. I say this because as a young College Student, I didn't fully understand Credit Cards. I got myself in a huge mess of unnecessary debt. In my opinion credit will come. There are other ways to build your credit. If you are going to use a Credit Card as a credit builder, be an authorized user on your parents card. As they make wise purchases and payments it will build the college students credit. For other ideas on how to build credit without a Credit Card click Here.
Tip #6 - Learn to Love Frugality
The Huffington Post said it best,
"Yep, you're gonna be one of those people who look back fondly on their Ramen noodle days and their campus apartment furnished with hodgepodge hand-me-downs. And you know why you'll be looking back on them fondly? Because future you will be financially comfortable, since you made smart money decisions now.
Don't be one of those students who decide they must live the high life in order to enjoy their college experience. (On the contrary: Being broke is part of the college experience.) You can reward yourself for a long week of studying by having a game night with your friends, rather than lining up shots at the bar. If ever there was a time in your life when it's okay to play the frugality card, it's now. Your future self will thank you."
Tip #7 - Play Up Your Student Discounts
Students get unbelievable discounts, on just about everything. As a college student, always, always ask if there is a student discount. From local grocery stores, restaurants, entertainment. Business what college students and they know they don't have money so take advantage. For the rest of us. we too should take advantage of any discounts that come our way. Family, Military or Age discounts can save us money.
As all parents and children prepare for this upcoming school year. I hope this advice will empower to make smart financial decisions.
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