Financial Management for the College Student - Part I

Being a financially responsible student while in college can be one of the most difficult things to manage. It is usually easy for most people to tell college students to just save their money or not spend too much. To be honest, in some circumstances, especially for the students who go away for school, this is easier said than done, but we will dig deeper into that later. For example, I heard so many people say that college students do not have good financial management skills. In actuality, though, most college students do not even have many finances, to begin with. Before we talk about ways to manage your money in college, let us consider different ways to earn income in college.

Finding Income

There are several traditional and non-traditional ways to receive income while in college. One way is to find a job on campus, such as in the library, cafeteria, student center, and so on. You can even look at jobs off-campus at a neighboring shopping center, gas station, or fast food restaurant. Additionally, you could even become a Resident Assistant at one of the dorms on campus. Some untraditional ways, but valuable options nonetheless, include being a per diem tutor (charging per sessions), selling snacks and food, or even starting your own business such as a clothing line or becoming a barber/hairdresser. Since this is college, after all, you can even consider becoming a party promoter, and throw off-campus events while charging each person for entry. Lastly, and typically the most important, one of the most anticipated streams of income for a college student is the refund check.

Now with all these different forms of income, let us discuss how to manage it.

Budgeting & Saving

Budget and save are probably the two least favorite words any college student wants to hear. I get it, someone is always selling something, there is always some campus fair, and there is always a school-sponsored party every weekend. So, it seems as if the money goes as soon as it comes in. There is a way, though, for you to enjoy these events while still being able to save money at the same time.

Budgeting is typically the go-to action when it comes to financial management. Having a budget allows you to see, dollar for dollar, where exactly your money is going. It also gives you the ability to plan for upcoming months, and determine where you want your money to go. Once the budget is in place, the next step is to follow it. Keep in mind that a budget is not permanent, you can always move money around. You may want to save more in one category or spend less on clothes so you could be able to spend more on food.

Following a budget is not as easy as it sounds, especially for a college student. However, with the right discipline, and even by establishing realistic benchmarks for yourself, you will be well on your way to financial freedom.

Written by: Kagame Li-A-Ping