Good money management is about forming healthy habits early on.
According to financial instructor, Bola Sokunbi planning is the key to managing your money well. Setting financial goals and creating a plan is a good place to start.
In her video ‘How to manage your money as a college student’ she highlights some of the areas that students should consider as they begin to plan for the future.
Embrace the B-word
Do you get a stipend or a student allowance? Even if your income is low you can implement a budget.
Learn how to budget with the little money you have so that you will be comfortable with budgeting once you start earning a bigger pay check.
Pay back the Money
“Be conscious of the amount of student loan debt that you are taking on.” Make sure that you understand the interest rates and other conditions linked to your loans.
“Start to aggressively pay off student loan debt.” Don’t allow minimum payments to become a way of life.
Save, save and save some more
Build a habit of saving. The amount of money you save is less important than the practice of saving consistently.
It might help to have a goal. For example if you are working towards buying a car it will motivate you to be more disciplined in your saving.
Think before you swipe
If you can’t afford to eat out stay in. Things like nice clothes and fancy cars are nice to haves “but you want to wait till you can actually afford them.” Learn to live within your means and don’t allow peer pressure to make you spend more than you are able to.
More credit, more problems
Sadly many students are caught up in the credit card trap. Young people don’t consider the enormity of their poor financial decisions and often have to pay the price later.
Don’t be solely dependant on a credit card. “Especially if you don’t have a job, a credit card should not be the way that you live your life.”
The future is now
Most people wait until they are much older to think about things like retirement or financial security.
If you set your long term goals now it will help you move in the right direction and prepare for the latter part of your life as your wealth increases.
For more insights watch