How Students Can Learn to Manage Their Money While at College

As a student, do you want to manage your money wisely and also help to build credit while at college? Of course – learning good money management habits at college can stand you in good stead for your future life after graduation. Read the tips below to learn more about how you can accomplish this important detail in your life.

1. Get a credit card

Start yourself off in establishing good credit by acquiring a credit card and using it wisely. Choose a card that does not carry an annual fee. Do not put more on your card than you can handle, and pay off your balance in full every month if you are able. If you cannot pay the bill in full, make an effort to pay a bit more than the minimum requirement. This is a great way to build a credit history that will reflect favorably on you in the future.

2. Make payments on time

If you are making monthly payments, such as rent and auto insurance, make every effort to pay these bills on time and in full. How well you make payments, including whether they are made on time, will go a long way in creating a good credit history for you.

3. Put money away responsibly

If you are working your way through college, make a budget and stick to it. Put a certain percentage of your income away each month for different expenses so that you will always be able to make your payments on time and in the amounts that are required.

4. Check your credit reports

Once you have had a chance to establish credit for a period of time, request a free copy of your credit report from the three credit bureaus, Experian, TransUnion and Equifax. Check over your reports very carefully to make certain that there are no errors. If you do find a discrepancy, notify the credit bureau immediately and let them know. Errors do happen, and they can pull down your credit score.

5. Make purchases wisely

 Try to save money wherever you can. For example, college textbooks are often high in price. If you can save some money by purchasing used books in good condition, you will want to do so. Do not make extravagant purchases at this time in your life when you might not have the ability to pay for them as easily as you can later when you are more established.

6. Use the ATM wisely

Do not take out more cash when you use the ATM than is absolutely necessary. When you budget your money, also work out a budget for how much money you will need each month from the ATM, and try to stick to that amount as closely as possible.

7. Make use of appropriate apps

There are many apps now available that can help you greatly in keeping track of your spending habits. Use them to your advantage.

Your college days can be some of the best times in your life, especially if you are wise in managing your money and in building a favorable credit history for the future.

The author Claire Atkinson writes for Kanetix.ca. She followed the above advice when she was at college and thinks it’s an important life skill for students to learn to manage their finances at a young age.