College Lesson #185 - Get Your Finances in Order

By now, you have made it through one and a half semesters in your first year of college. So, how are those finances looking? Have you made some financial blunders? Did you charge five dollars on a credit card because you already ran out of money due to the new outlet stores that opened in town? While you might have thought all the learning would take place in the classroom, you are probably seeing that the important financial lessons are occurring outside the schoolroom. Before your finances grow even worse, let’s take a moment to do a little financial lesson now, so you can be better prepared for next year! And to those of you who are just now receiving your college acceptance letters and are gearing up for your freshman year—this would be a good time to start the practice of taking good, detailed notes!

Set Yourself Up for Financial Success Now!

While your head might be spinning at this point trying to figure out how you are going to handle all the responsibility of your finances while in college, there is really no need to be scared. The main thing is to have a plan in place.

First, you want to write down all of your concrete expenses. This is your rent, cable/Internet, cell phone, utilities, groceries, gas, etc.—the monthly bills that are not going anywhere and that you need to make sure are taken care of first. Then, you can look at what you have left over for the things you do not necessarily need—but maybe want—each month, such as clothes, eating out, entertainment, etc. The key is to take care of your business first. If you have money left over, then you can go for your wants. But, if you want to establish really good money habits now, to make it easier on you later, also set aside some money to put into a savings account each month. This way you have a resource if you need it for emergencies, like if your car breaks down, washer and dryer dies, an unexpected medical issue occurs, etc.

Also, be sure to use your “student” status to your advantage. Many times, places on and around campus offer student discounts. Before buying, be sure to see if a discount is offered for being a college student. If you can purchase for less—why not do it?!

Whatever you do, do NOT go for the credit card! It is NOT worth it. It may seem worth it because you are able to obtain what you want now, but it will not be worth it when you are ready to purchase a new car, buy your first home, etc. If you want something and cannot afford it, save up until you can.

Let us be your financial professor! Come by and see us today to learn about the different options we have to fit your college lifestyle!