How to Save Money in College

Living with little money in college is no picnic. Almost all students go through college this way. When your paycheck or allowance barely covers your expenses, it can be a struggle to afford all of those extra things that you need in college. Saving money where you can will make a big difference in the long run. Little by little, you can save up a substantial amount.
Overspending is a big problem among college students. Most are experiencing freedom and independence for the first time in their lives. Avoid impulse items at the checkout and avoid the mall at all costs. Shopping thrift stores and trading up outfits with friends can save you a lot on clothing. Be a bargain shopper and go straight for clearance racks. Save those pricier items that you really want for your Christmas and birthday lists! Learning patience with yourself will be one lesson that will serve you for your whole life.
Making extra money can be very helpful as well. When you do not have too much studying to do, take over shifts for co-workers or ask for a little overtime. Do not hesitate to fill out applications at places that might pay you more or give you better experience for your major. Clothing can be sold at consignment shops, books can be resold to the campus book store and household items, as well as name brand clothing, can bring in more money than you might have realized on online auction sites.
Think about your skills and determine what types of services you might can offer on the side. Are you good at painting, lawn care, babysitting or housecleaning? You may be surprised what people are willing to pay for these services. People are generally happy to help out college students over professionals in these areas as well. You can even make flyers or signs to attract people’s attention. Some other ideas include washing cars, tutoring, cleaning gutters, cutting grass, typing term papers, or delivering groceries for those who do not have time.
Saving money on your frivolous purchases is job number one. If you depend on fast food calculate how much you are spending every month and figure out how much you can save by cutting it down to once a week. Calculating how much you save every month will serve as a great motivational tool.
Saving on transportation can make a huge difference with gas prices soaring through the roof. Start a carpool, take the bus, train or subway, or simply ride your bike to work and school. Find other ways to lower your bills. Compare cell phone services, cable, home phone and internet bundle services. Cut back on the energy that you use in your home. Do not leave the TV, radio, or phone chargers plugged in when you are not using them. They still drain power even if they are turned off.
Stick to a budget. This is the hardest part! Figure out how much money you make and overestimate what your bills will be. If you really are in over your head, you might consider student loans. Make your payments on time and build your personal credit.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

Creating Your College Budget

Budgeting can be new territory for students. Managing money will be one of the biggest new responsibilities for most students. Many students have not had any guidance or education about managing their money. Most people end up learning the hard way and costing themselves a bundle in the process. It is up to you to educate yourself about budgeting and other money matters.
You may be surprised to find out that many college students do not even know what the word budget means. If you think about it, they have, for the most part, never had to worry about budgeting any kind of money because they have always lived at home. At worst, they might need to figure out how to make their gas money last another week.
Adults know how hard it can be to stick to a budget and you should realize that your son or daughter in college will struggle with this as well. It helps to remember that this may be the first time in their lives that they have to discipline themselves, something some adults struggle with.
When preparing your child for college, simply explain what budgeting is in terms that they can understand. Give them an example using a monthly income and a list of bills. Figure out together how much is needed for gas, food, electricity, phone and school. Whatever is left over needs to be divided into savings, emergency money, and fun money. It helps to figure out the monthly budget and then divide the total amount of accessible money into a weekly allowance for yourself. It may help if you open more than one account to keep money separated. A simple way to explain budgeting is to say that it is a plan that lists all of your money coming in and money going out.
Create a template spreadsheet that your child can use to track unexpected expenses month to month. They should note any extra expenses that pop up during each month. Things like oil changes, auto repairs, medical expenses, buying clothes and other unexpected expenses can be planned for to a degree. Keeping track monthly will help them look back and determine if their emergency funds are enough.
Keeping up with the budget will be challenging and you should not expect them to be really consistent. Expect setbacks and be supportive of the efforts that are made. Offer remedies for mistakes, such as taking out cash on payday instead of using a debit card or checks is a very effective way to stick to a budget. When the money is gone, you know that you are not allowed any more. Encourage your child to leave their debit card at home so that they are not tempted to spend any money from their bill or emergency funds. If there really is not enough money to get them through, then you may consider student loans to bridge the gap.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

How to Financially Get Through College

When you go to college, you have your future on your mind. Choosing a major, meeting new friends and enjoying your new-found independence can make college a very exciting time. Books, car payments, tuition, life necessities, travel and lab fees can also make college a very expensive part of your life. Many students need a little help along the way. In fact, the majority of students are now taking out student loans to get them through these expensive years.

When you start shopping around for student loans, there are a few things you should know. In the past, loans have been very hard to obtain. Students could just about never qualify due to the fact that almost every lender required a high-paying steady job. Very few college students have the time or the experience to get a qualifying job. Today, the rules are a lot more lenient. Lenders recognize that students may not have money now, but they are in college working on starting a career. Since college educated employees should make considerably more money than their non-educated peers, the potential for college students to pay back loans is much higher than other people without that high-paying steady job.

Be smart about the amount that you take out. Keep in mind that lenders may be counting on your lack of experience with dealing with money. They may have hefty penalties for late payments. They may try to sneak in some yearly or monthly fees on top of your annual percentage rate (APR). Make sure that you read the fine print and compare many loans before accepting one. Check payment schedules and pay attention to dates. Many companies have a 28-30 day billing cycle, making your monthly payment due just a little earlier each month. Over time, you may find your payment due at the beginning of the month instead of the end. Little traps like this are legal and it is up to you to pay attention to the terms of the loan.

Make every payment on-time and pay more than the minimum if at all possible. When you are in college, you are just starting out on your personal credit journey. When your credit is fresh, one late payment can be a major blemish on your record. This can bar you from future car loans or mortgage loans. Use student loans, which generally have better terms and payback options than conventional loans, to build your credit and show your responsibility on your credit.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

How to Manage Bills in College

Students generally find it very challenging when learning to pay their own bills. It is just new territory and setting limits on yourself is not always the easiest thing to do. Until college, your parents probably took care of all of the financial responsibilities of the family. Learning to teach yourself how to budget and make responsible on-time payments is easier said than done.

College is about more than getting your degree. It is literally about learning to live a responsible adult life. Getting your degree is only the first step in setting yourself up for a financially secure future. Paying your bills on-time may sound like a small part of college, but really it can have a long-lasting affect on your life.

Many students blow off a bill to take a weekend trip with their friends, go shopping, or in some cases, buy groceries! The truth is, many people only become educated about the ramifications of missing payments by actually missing them. This can take a very long time to recover from and it really is not worth learning the lesson the hard way.

Unfortunately, many people are under the false impression that a penalty fee is the only repercussion to paying a bill late. This may even seem true for a little while, until it is too late. You go to buy that first car or home and you simply get denied. This is because utility bills, rent, credit card bills and student loan payments all flag your credit when you miss a payment. After a couple of flags, you suddenly are labeled as a person who overextends themselves financially and then does not manage their time or money well. Once you are seen this way, it can take years of on-time payments to prove otherwise.

Even one late payment can blemish your record. This means that if you do qualify to buy that house or car, you will end up paying a lot more than your peers. This is because banks and loan institutions will require a lot more money down to cover the loan. They will also charge you a much higher interest rate than people that pay their debts on-time. Many mortgage companies require that all bills be paid on-time for at least one solid year before they will approve a loan at any interest rate.

The bottom line is that you really have to take every single bill seriously. Keep your credit as clean as possible so that you can eventually qualify to buy a house or car at low enough rates to afford it. Make sacrifices to pay your bills on-time. Have your paychecks direct deposited if possible and have your bills automatically withdrawn the day after your paycheck clears. Open a second bank account that is specifically for money other than your bill money so that you do not accidentally dip into your bill funds before you get the chance to pay them. Take every precaution necessary to keep your credit card payments, student loans, and utility bills paid in full and on-time.

College Student Budget

College can be an exciting part of your life. You’re having all kinds of new experiences and you’re also taking on new responsibilities. Your new found independence isn’t all fun and games. You have to learn how to live your life on your own and college is the perfect time to learn a lot of life lessons. One of these lessons is learning how to manage your money. Learning how to create and stick to a budget is nothing short of challenging for most people and you might appreciate a little guidance.

The first step is to plan out and write down your budget. Using a money management program or spreadsheet on your computer can be a helpful tool as well. First, figure out how much income you have coming in. Count allowance from your parents, student loan or financial aid money, as well as your regular income from your job. Deduct your major expenses first, such as tuition, books, room and board, power and water bills, phone bills and any other regular expense that you have leaving each month. Some people stop here and end up running out of money anyway. This is because they didn’t take it that one step further and figure out where else their money goes.

There is a lot more that you need money for than just bills. First is food and gas. Figure out what you’ll need each month to eat and get to and from work and school. Figure out the things that you periodically need and set aside money in a savings account for these purposes. Oil changes, trips home, Christmas expenses, unusually high summer or winter power bills, whatever has come up before that you weren’t prepared for. Estimate what these things cost you yearly and divide it by twelve months. This should give you and amount to save monthly so that these irregular expenses don’t surprise you and get you off track. When you don’t prepare for the inevitable, then you’ll inevitably end up in debt or in some other serious financial trouble.

Preparing for every little emergency and eventuality may sound good in theory, by it is actually hard for a lot of people to stick to their budgets consistently. It takes practice and college students are just starting out. You may find it difficult at first, but consider your budget one of your classes. You’re learning as you go and you’re not expected to do it perfect on your first try. You will find yourself adding expenses and taking others away, your income and bills will change and you’ll need to constantly adjust your budget.

Take notes each month, whether it’s in a notebook or on the computer, so that when you plan the next month’s or year’s budget you’ll be able to review what problems you ran into before. You may decide to save more for December because last year you ended up buying more last minute gifts than you expected, ended up going to more parties than you planned and spent way more than you originally budgeted for yourself. If you have big emergencies or just don’t make enough money to get through your college years, then you might consider taking out student loans or private student loans, which have special rates and qualifications for students.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.