Are you looking for money-management tips that will help you manage your finances well as you are pursuing your degree? If you are, then you have surely stumbled upon the right article. This is because we will be discussing several pointers that you can use to responsibly manage your cash on hand. This way, you can avoid falling into debt traps as well as compromising your financial prospects.
Six Tips on Money-Management
1. Join a credit union. Track down a credit union in town or do some research on online banks that offer credit accounts to students like you.
2. Don’t get a student credit card unless you absolutely need one. A common mistake among college students is that they hastily apply for credit cards for students without understanding its effect on their finances. And since they are very much eager to use their very first credit cards, they keep on charging all their purchases – necessary and otherwise, on their cards. And soon enough they will incur a hefty student credit card debt that will prove very difficult to settle.
So finance experts suggest that college students sign up for a credit card for student only when it is absolutely necessary. This way they can minimize the risk of running up large credit balances and of retiring large financial obligations.
3. Avoid non-academic debt. Students cannot seem to resist the urge to buy the latest gadgets and items they see in the market. So, they use their first credit card to immediately get their hands on these new products, without thinking whether or not these items are really necessary.
This is why most experts recommend that students use their student credit cards only for academic purposes; that is for paying tuition and school fees, purchasing books and school supplies, and paying for their other school needs. Should they want to buy the latest gadgets, they need to save up until they can come up with sufficient amount of money to buy the item they want.
4. Pay bills on time. College students should always be reminded to pay their bills and credit card charges as soon as they arrive. This way, students need not worry about forgetting the bills they are supposed to pay. Aside from this, they can also avoid paying penalties and other additional charges.
5. Monitor your spending and make a personal budget. College students are encouraged to list down all their expenses as well as the allowances or income they receive. This way they can identify whether they need to cut on some of their spending to spend on more important purchases. They can successfully do this with the aid of a monthly budget.
6. Guard your important documents. It is also important that college students understand the importance of protecting themselves from credit fraud and identity theft. How can they do this? Well by simply not giving out their social security number or their bank or card information to just anyone. They also need to keep their important documents and credit-related papers in a well-concealed yet easily –accessible storage. In so doing they can prevent themselves from falling victims to the illegal use of their identities as well as of their credit information.
We hope that this short discussion provided you with much information on how you can manage your money wisely. This way, you will not encounter any financial problems or difficulties as you pursue your bachelor’s degree.
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