A GRADUATE’S TIPS ON FINANCIAL ADVICE FOR COLLEGE STUDENTS Let’s face it, The majority of high school graduates lack adequate money management skills. It’s just one of those things that high schools don’t teach you but really need to.
Can I be frank?
Once I started college, I was a financial disaster (where were the articles on financial advise for college students ten years ago?!). I discovered that I was taking out school loans without even considering how I would pay them back afterwards. All that mattered was what I intended to use the money for at the time, such as going out to dine with friends, taking weekend getaways, etc.
I didn’t really understand how fiscally poor some of my choices were until my junior year. Even though I was working a few part-time jobs to cover the bills, I was still ill-prepared to graduate, especially because I had thousands of dollars in student loan debt (you can read about how I’m addressing that in 7 Tips for Paying Off Student Loans).
I’ve been “adulting” for nearly five years now, and over that time I’ve learned a lot about money management, including things I wish I had known before entering college.
I want to provide college kids some financial advise because of this.
Please remember that while I am by no means an expert in finances, I am a college graduate who has been in your position and am aware of how alluring it may be to keep borrowing money without considering the repercussions. I want you to think about what you may be doing differently to position yourself for financial freedom in the future as you leave this page.
You get a gold star if you’re already on the right track! Continue your wonderful effort!
If you sound more like a narrative, I hope the following financial guidance will put you on the correct path.
COMPREHENSIVELY COMPREHEND YOUR FINANCIAL AID PACKAGE Most pupils stare in awe when they see a letter announcing their financial aid. It could be related to the loud “Congratulations! They centered it with “Here’s $$$$$.”
Receiving financial aid is a fantastic thing, but if you don’t pay attention to the fine print, it might ruin your finances. To be sure you’re prepared, read Financial Aid Tips from a Former College Student!
In the end, you need to determine how much your annual college expenditures will be. When you have a ballpark figure for that amount, check your award letter to see what grants and scholarships you were given. These don’t require repayment.
Subtract from the predicted sum you noted earlier the amount of money you earned in grants and scholarships. What you need to concentrate on is the number you still have.
THIS COULD BE WHERE LOANS GET INVOLVED If all of your other choices for paying for college have been exhausted and you still need the money to pay for your education, you may need to take out student loans. If this is the case, make sure you followed these advice: Money Saving Tips for College Students: Save Thousands.
Here are some of my top pieces of financial guidance for college students: Do not. I reiterate AVOID taking out more debt than is necessary. I am aware that the financial assistance office most likely gave you a few thousand dollars more than you require. I am aware that it is alluring. Don’t do it, though!
Instead, I want you to consider each loan that was presented to you. Consider factors like interest rates, whether or not it is subsidized, and if it is federal or private. Contact your school’s financial assistance office and let them know how much of the loan you actually want once you’ve determined which choice is the best one.
In this case, you benefit yourself in several ways:
In the future, you won’t have to pay back as much loan interest. With the extra money, which isn’t really your money at all, you won’t be inclined to indulge (since you have to pay it back) You’ll discover how to manage your money more wisely so that you don’t have any more payments to make. I’m not suggesting you shouldn’t have fun and occasionally buy a few items; rather, I’m just urging you to be careful with your money and plan ahead.
The best financial advise for college students is to plan ahead rather than in the now, if you take nothing else away from this piece. Don’t let the money symbols fool you.
CONQUER TEMPTATIONS
College offers a completely new degree of independence. You no longer have your parents micromanaging or directing your every move, depending on how you want to look at it.
No… Now it’s all up to you.
Although this freedom is frequently embraced with open arms, it frequently comes with incentives to spend more money.
Create a weekly activity fund for college students who have a tendency to overspend or are easily persuaded. You have to wait until the following week to make purchases once your funds have been depleted.
That brings up one of my favorite advices.
MAKE A BUDGET IS THE BEST FINANCIAL ADVICE FOR COLLEGE STUDENTS. Even though maintaining a budget sounds so easy, a lot of college students don’t do it.
I understand that you have internet access to your bank account and a phone app that performs all of the calculations for you. That’s why technology is amazing!
Unfortunately, the majority of pupils don’t even use such basic tools.
You could empty your account without recognizing it if you don’t regularly check your finances.
With this FREE budgeting printable for college students, I’ve done all the work for you because I know how busy you are with your studies. This is a fantastic application that is specifically designed to help you manage your student spending!
NEVER GIVE UP SEEKING I believe there is an unstated presumption that once you enroll in college, you are no longer eligible to apply for outside grants and scholarships.
My financial counsel to already enrolled college students is to keep looking!
I understand that you have a busy schedule with classes and studying, but try to find a few minutes here and there to look for more financial aid. Numerous scholarships are available for upperclassmen and students pursuing particular degrees.
The following suggestions can aid you in your search:
Enter “scholarships for upperclassmen” into the search bar. Discuss any grants or scholarships available with your financial aid personnel. Look at FastWeb or Scholarships.com websites. Look for scholarships in your field of study or major. TAKE A CLASS IN FINANCE (IF AVAILABLE) When I was in school, I would never have thought about taking a finance or investing course, but now that I’m giving financial advise to college students, I must include this on the list.
You’ll probably have the choice to invest in a 401K or another investment portfolio when you graduate and land your first job. Understanding your alternatives and the hazards involved is highly important information to have.
If your school doesn’t offer a course like this, consider looking for one at a nearby bank. Online resources that are free abound as well!
DO YOU FEEL OVERWHELMED? Make a plan with this financial advice for college students. Spend some time getting a handle on your finances, and don’t be shy about seeking assistance as you go. When it comes to financial management, knowledge is definitely power!
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