Money Matters: Budgeting Tips for Students | Business

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Many freshmen arrive on campus excited about the opportunities available to them. Getting the chance to meet new people, get involved in many activities on campus, and learn about future career paths are just a few of the things to look forward to.

Yet with so much immediately thrown on a student’s plate at the start of the year, personal finance and money management doesn’t get as much attention. Unfortunately, this lack of awareness could create bad habits and limit future spending choices.

Added that college costs have increased over the years, students who practice smarter financial habits will benefit in the short and long term.

One of the best ways to develop better habits is to create a budget to monitor spending. There are many benefits to starting budgeting early, such as knowing where the money is and where it is going, establishing the discipline to be responsible, and developing the habit of checking your finances.

When creating a budget, it’s important to identify needs first, including rent, food, and clothing. These categories are the most essential and should be taken care of before anything else. Once someone has looked at their income over a period of time – a month, for example – they need to break down the amount needed for items that fall under the “needs” category.

Then it’s time to move on to the desires.

Deciding how much to spend on wants can be a difficult part of the budget. It is important to identify what one likes to do the most for relaxation and entertainment while remembering to stay within reason, as students need to be mindful of their financial situation.

Another way to save is to buy brands that offer student discounts. For example, Amazon Prime has an agreement where the first six months are free and then $ 6.49 per month thereafter. With fast, free shipping for Amazon Prime student members, users can easily purchase items for dorms and classes. Clothing companies such as Nike and Under Armor offer 10% off purchases from college-aged customers.

There are many other behaviors that can help save a few extra dollars, and if taken seriously, funds can easily add up over time.

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One way to save on studies is to rent used textbooks for the semester instead of buying new ones. New textbooks are often much more expensive than old ones. If they’re only used for a 15-week period, students get the best deal by renting them out instead of buying.

Subscription services are also a great way to save money, if roommates or friends are willing to share the costs. While this is a great way to subscribe, one of the easiest ways to throw money out the window each month is to maintain a subscription to a service that is rarely or no longer used. However, having a quality budget can help show off this unwanted expense and can be eliminated quickly.

Yet while personal finance may not get the attention it deserves, students are even less concerned about saving and investing for retirement. With quick and easy ways to set up accounts, such as a Roth IRA, there are some ways that students don’t always have to start saving for retirement.

Albert Einstein once described compound interest as the “eighth wonder of the world”, saying …

However, some companies, like fintech start-up Acorns, are taking user change and investing it for them. These apps offer many ways to start investing without having to deposit more than a thousand dollars.

While these are just a few examples of how students can start saving money and managing their finances better, the best way for students to save money is to analyze their spending and determine ways to make money back. their spending habits more efficient and reasonable. With small changes and sacrifices in daily habits, saving becomes much easier and offers more future opportunities.

Andrew Withers is a senior in finance. Contact him at [email protected]


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