Tips for college students

Updated on: Saturday, July 25, 2009

Chennai: Proper self and financial management is highly imperative today for all the youngsters, as these fundamental principles take a person through his life without falling a trap to various problems and financial liabilities.

But personal finance can be easy, even if you're just starting out. You just have to know how it works. All of the following are concepts I wish I had known before heading to college.

Money Management

Now that you're grown, you might be tempted to spend money on all the things your parents wouldnâ€™t let you have before. Go slow. If you play it smart, you can avoid the sort of money troubles that plague many young adults.

Join a bank that has a good creditability. Donâ€™t just sign up for a random bank giving away exuberant interest.

Don't get a credit card unless you absolutely need one. Those sitting behind the sign-up table are not going to help you. Theyâ€™re there to make money.

Avoid non-academic debt. It might seem like a good idea to put that on a credit card, but itâ€™s not. Focus on developing good money skills with cash. Worry about credit later.
Save and then flaunt. If you decide you must have that particular thing, then save for it. Wait until you can pay cash.

Pay your bills on time. Basic advice, but it's surprising how many people lose track of things. If you pay your bills as they arrive, you wonâ€™t have to worry about forgetting them.

Track your spending. Use a notebook, or dairy if you have it. Good records will prevent you unnecessary problems like bounced cheques, unwanted payments to irrelevant customers. This habit allows you to detect spending patterns.

Make a budget. It doesnâ€™t have to be pretentious. At the start of the month, estimate how much money you'll receive and decide where the needs are. Remember: you donâ€™t need to spend it all.

Save your receipts. File them up and preserve them. Youâ€™ll need to be able to compare them with statements at the end of the month. And some youâ€™ll need to keep for several years.

Don't give out your security number or your credit card info except to known and trusted sources.

It seems like there are several things awaiting for your money. Sometimes, it's hard to know what to do. Here are some ways to reduce your expenses on academics.

Buy used textbooks. You're just going to sell them back at the end of the term. Sometimes you donâ€™t need new textbooks.

Skip going back home unnecessarily for another trip. You can have a lot of fun close to campus for little money. You might be surprised at times how much fun it can be to stay on campus, too.

Live without a car. Cars are expensive: gas, maintenance, insurance, registration, and parking. Stay close to campus. Learn to use mass transit. Join along with a friend who has a car.

Donâ€™t go along with spendthrifts. Some students have parents with big pockets. Going along with them can lead you to spend more than you can afford.

Take advantage of campus activities. There would be always something going around. Attend free movie festivals, symphony and sports activities. Attend lecture series. Get the most from your student ID!

Personal Life

Self-discipline is more important now than it ever has been in your life. Take care of yourself. Your parents aren't around to remind you to brush your teeth. Nobody's going to scold you for eating three chicken pizzas.

Go to class. You're in college to learn. Everyone skips now and then, but don't make it a habit. What you learn and do now will have a profound impact on the rest of your life.

Get involved. Staying busy shuns boredom. It also helps you build skills and form social networks that will last a lifetime. Try out for a play. Join the astronomy club. Write for the school paper. Find something that sounds fun to you and do it. Take little risks!

Stay active. A healthy body costs far less to maintain than an unhealthy body. You donâ€™t have to do much to avoid gaining weight in college. A walk around campus each day will probably do it.
Eat healthy. It's possible to eat well on a small budget if you know what youâ€™re doing.

Limit misconducts. Beer, cigarettes, and grass are expensive. They also do lot of harm to your body and mind. Take it easy on the vices.

Have fun. Your college years will be some of the best of your life. It's trite, but true. Make the most of them.

Decision Making

Get in the habit of making smart choices now itself, and you'll develop a pattern of behavior that will stand by rest of your life.

Make smart choices. You can do anything you want, but you can't do everything you want. Decide whatâ€™s important to you, and pursue that. And remember to give time for yourself.
When you want to buy something, ask yourself "Do I need it?" If you think you do, then wait. Don't buy on impulse. Write the object of your desire on a piece of paper and pin it to the wall. Look at it every day for a week. If, at the end of the week, you still think you need it, then consider purchasing it.

Making Money

If you can master even one of these, you'll have a head start on your friends. Master all four, and you'll be on the road to wealth. For sure..

Spend less than you earn. Don't earn much? Then donâ€™t spend much. If your spending and income are roughly even, you have two choices: earn more or spend less.

Be an outstanding employee. Good work habits can pay enormous dividends, leading to recommendations and contacts that you can use after you're out of school. Several of my classmates turned work-study jobs into launching pads for future careers.

You can start your own business. Can you install a computer system? Can you perform minor car repairs? Do you have a pickup truck you could use to haul furniture? Are you a fairly good guitar player? Charge cheap rates and exceed expectations. Word will spread. When youâ€™ve built up a customer base, you can raise your rates a little. This is a great way to make money.

Above all the most important thing is to develop the investment habit. Ten years from now, you'll thank yourself.

Now stop fretting over money. Get out there and have some fun. I'll be here when you return.

Tips for college students

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