Tips To More Effectively Manage Money For Students

By: Jeremy Housewright

While college students are often criticized for their careless spending, most students generally do a better job managing money than they are given credit for.

A typical college student may have a college loan, a checking account, a savings account, a credit card, an ATM card, a debit card, a pre-paid phone card and a valuable student identification card.

It is easy for many college students to mess their finances up, considering most students are new at paying bills and managing expenses. However, 3 out of 5 college students manage to pay credit cards monthly, according to the Student Monitor survey. Most college students also work at a part-time job during the school year.

The Student Monitor survey also found that only 30 percent of college students like to by things on sale and most admit to buying on impulse.

“If I want something, like a CD or DVD, I’m going to buy it right away,” sophomore Chad Mueller said.

There are some easy tips that will help college students better manage their money.

Have only one credit card. More than one card just gives students the opportunity to get into more debt. Parents need to remind their children that credit cards are for convienence and emergency, not a loan.

College students need to learn to balance their checkbooks. The habit of writing a withdrawal down immediately is good.

Students should keep better track of spending. According to Student Monitor survey, the average student spends $200 a month on casual items, such as clothing and movies.

Sharing items will also save money. Try to share or trade clothing with friends. Selling back textbooks is also a good way to save money. For those who live in an apartment, sharing a vaccum cleaner or a grill is an easy way to save.

Investing is the ultimate way for a college student to preserve money. If a 20-year old manages to put money away in stock or mutual funds, their finances will look great in 10 years.