Most college students find themselves stuck between wanting to spend money on whatever they want and attempting to save for the future.
It is crucial for college students to be more conscious of how they spend their money and choose to spend it wisely. This is the time in our lives where we begin to prepare for our future. Therefore, it is important that we are more aware of our spending habits and to have some savings set aside.
There are many different ways that students can cut back on spending and start saving their money. The first way students can save their money is if they cut back on unnecessary spending.
Jenna Hersh, a senior finance student and President of the Economics and Finance Club, said, “The two main areas that students need to cut back on spending are takeout food and for clothes and other items that you don’t need.” Most of the money that college students spend is on food. Whether you’re out with your friends, grabbing Chipotle, Jr’s, or Panera, all of these trips will add up and cause your bank account to shrink.
Nicole Simpson, a business major, added, “Depending on your age, going out to bars now will have you spending a lot too. Therefore, it’s important to pick and choose what you spend your money on.” The same rules apply for shopping. A lot of people go to the mall and spend large amounts of money at a time on clothes and other things they don’t need. Simpson advised, “If you don’t need it, don’t buy it, because the odds are, you’re not going to use it.”
Another way you can use your money wisely is to take some of it and invest it.
Specialist professor of management and decision, John Buzza, said “You have to look at your situation because everyone is different and then sit with a financial advisor to give you a head start on where you want to put your money in order to see long term growth.” Additionally, it is important for students to start building credit now. A lot of college students open their first credit cards during these four years and don’t want to fall in debt or lower their credit scores. Buzza said, “You have to make sure you have the money set aside for what you’re going to purchase with the credit card, so that way you can pay it off right away.” It is important to establish good credit now so that way after college when you go to buy a car or house the interest rates and loans you get will be lower.
The last and the simplest way to save your money is to always set some of your income aside into a savings account. Hersh, said “A way I save my money is every time I get paid I put a certain amount in my checking and the rest goes into my savings. It’s also important to make a budget sheet to keep track of your finances.” By doing that you will build up a savings account. That is important to have if you don’t have one already. Setting up a budget sheet will also help to monitor you’re spending habits.
Living in an area close to the city and where expenses cost more than in other parts of the country can hurt the college student’s pocket. Therefore, it does take a lot of self-control to avoid the temptation of dipping into your savings account for things you don’t need. It is important to remain strong, so that way, in the future, when something comes up you have the money set aside. Remember, saving a little can go a long way.
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