5 financial strategies for college students
If you read our last post (infographic about student life) you probably noticed the section about financial stats and facts that are crucial to student budgeting. It is imperative that college students pay attention to their spending habits and plan well in order to graduate with a manageable amount of debt. College student’s average debt after college is $23,700, and the monthly payments are average $432 per month. How can a student plan, in order to have a healthy financial life? Retire happy.ca shared 5 simple money strategies for students, that will help you managing your financial situation.
1. Finding the right bank account
Most banks provide no-fee accounts for students, but each bank might provide different benefits, such as number of transactions available. Research and choose the best option for your pocket.
2. Understanding you cash flow
Take some time to understand your cash flow: when and how much comes in and out your account. This is essential so you can budget and plan how much money you can actually spend.
3. Budgeting for play time
Based on your cash flow, plan your weekly or monthly spending, and stick to the plan. From accommodation and board, tuition, books and supplies, entertainment, transportation, vacation, and shopping, know how much you can spend.
4. Looking for deals
Students can take advantage of many deals, from events, to shopping, to grocery shopping. Bring your student ID with you at all times, and search for deals. Overtime, you might save hundreds of dollars over the time you are in college.
5. Being careful with your credit card
In 2008, 84% of undergrad students had at least one credit card. Credit cards can be one of the biggest traps available for students, as it offers credit based on students’ future earning potential, and not the current ability to qualify for a card. Be careful when using it, so you don’t accumulate a lot of consumer debt.
Follow these rules and plan for your financial life.
Read the full article at RetireHappy.ca.