Being a college student is tough. You’ll encounter new challenges along the way specially about money. Some of us may struggle how to truly manage our money effectively. Below, we provided some financial tips for students like you to help you manage your funds during your college life.
Use Your Financial Aid Package Wisely
As students, our day will be filled with joy once we receive a financial aid award letter. Maybe it’s because of the big “Congratulations! Here’s *insert amount here*” written on the center.
It’s a good thing to receive a financial aid, but you have to pay attention on how to use it wisely. Once you have made some calculations on your college expenses, take a look at your award letter and see what scholarships are offered to you.
Now subtract the amount of money you received from grants and scholarships from your estimated calculations of your college expenses earlier. What’s left to you is the one you have to deal with.
This is Where Loans Will Come into Play
If you ever feel hopeless and really need the money to be able to attend school, then maybe this is the time to borrow student loans.
And when it’s time to borrow, don’t ever try to borrow money more than you need. The financial aid office may offer you a thousand dollars for you to borrow but only take the right amount that you only need.
You can evaluate each loan offered to you. Check things like interest rates, whether it’s subsidized or unsubsidized, and if it’s federal or private. Once you’ve decided what option to take, go to your school’s financial aid office and tell them the exact amount of the money you want to borrow.
Here’s an advantage of not borrowing much:
- You won’t have as much loan interest to pay back in the future.
- You’ll be able to control your money without splurging the extra money that you just borrowed.
- You’ll learn how to spend wisely so you don’t have any extra payments to make.
It’s not a bad thing to enjoy and buy something for yourself, you just have to be mindful on how to spend your money wisely to avoid any unexpected payments in the future.
Don’t Be Tempted! Get a Hold of Yourself
In college, you’ll experience freedom. Gone are the days where your parents will guide you on how to make certain decisions. It’s all up to you now.
Even though this feeling of freewill may be overwhelming for you, temptations will also make its way to empty your wallet. Once you have nothing left, you have to wait until next week to spend money again.
To overcome temptation, here are some tips for you to follow:
- Make a Budget – It’s a simple rule that money students fail to follow. When you fail to manage your funds wisely, you might drain your account without even realizing it. So it’s important to spend your money wisely.
- Don’t Stop Looking – Once you’ve started college, you can never see some grants and scholarships for you anymore. If you feel hopeless, don’t give up! Start looking for more financial aids. There are plenty of scholarships that are offered for upperclassmen and students who are pursuing certain majors.
Here are some tips to help you look for more financial aid:
- Conduct a search about “Scholarships for upperclassmen”
- Contact your financial aid staff and inquire for grants or scholarships they might have
- Visit websites like FastWeb or Scholarships.com
- Search for scholarships that’s in your given major or area of study
- Join Finance Classes – Taking finance classes can help you gain knowledge how to invest or use your money in certain things. If finance classes aren’t available at your school, try going to your local bank and see if there are available. You can also find plenty of resources online for free.
Be wise on how you handle your funds. You can use these financial tips above to help you establish a plan. Take time to organize your finances and if you don’t know how, don’t be afraid to ask for help. Knowledge is the key to money management.