Effective Financial Strategies for Students In College
Going to college can bring many privileges but along with that, comes the responsibilities. If you are about to enter college or has just started your freshman year, this article presents useful tips on money management and financial strategies for young people.
On Money Management
Use your student credit card for schooling purposes. A student credit card is a great tool for building credit history but if used incorrectly it can also you to bad credit. Therefore, make sure that all your charges are officially for your education. More importantly, you must make sure that you will be able to pay back your balance in full before your due date ends. This way, you can avoid the interest rate fee and protect your credit history as well.
For non-schooling purchases, use cash. If you want to reward yourself with a new gadget or a new pair of shoes, do not charge it on your credit card. Instead, save your cash and wait until you have saved enough to buy that item.
Keep track of your own spending. Train yourself to become financially responsible by monitoring your own spending. A lot of student credit cards today provide an Online Account Access which means you can check your account from your computer at anytime. Check if there are unfamiliar purchases reflected in your account. If there are, call up your issuer right away to correct those charges.
If you notice that you’ve been using a large percentage of your credit limit, then put yourself in check and do the necessary adjustments. For instance, you may strictly keep yourself from using your credit card on new purchases until you manage to completely pay off your balances.
Create a budget plan. Based upon your monthly allowance, create a realistic plan to make sure that your budget is properly distributed according to your expenses. Be sure to set aside your bills payment and some amount for your personal savings. Having a written plan will enable you to see where your money goes so that splurges or unplanned purchases can be avoided.
Keep financial records in a safe place. After checking your monthly credit card statement, keep it in a safe place as you may be able to use them for reference in the future. Aside from your credit card bills, be sure to keep purchase receipts and other important financial documents.
Protect your personal information. College students are not exempted against the threat of fraud and identity theft. Educate yourself about the strategies used by identity thieves so you can be alerted against their tactics. Be cautious about giving away your personal information especially your Social Security number, credit card account numbers, etc.
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