It's no secret that going to college can be very expensive. As of 2012 the average student debt was approximately $27,000. What the what? Finances can be tricky to navigate in college especially since for most young people this is the first time you are in charge of handling such large amounts of money. We’ve got ya covered though. Here a few tips for cash-strapped students.
1. Keep track of your spending
This is the first step in handling your finances. Keeping track of your expenditures will help you become more aware of your spending habits and help you see where you can potentially cut costs. There are plenty of apps and websites that can help you easily do this. Most large banks also have apps and web versions that keep track of your expenses.
2. Cut back on unnecessary spending
Before buying anything, no matter how low the cost, (it can all very quickly add up!) you should always ask yourself these three questions: “Do I have to buy it?” If it's not possible to borrow the object or exchange it then ask yourself, “Did I find the best deal?” The last question you should ask is, “Will I use the item enough to justify its cost?” Don't buy a $500 iPad if all you're going to do is occasionally play Fruit Ninja on it.
3. Try lower-priced alternatives
Many of us are often loyal shoppers who swear by our favorite stores. Try something as small as switching from Starbucks to a cheaper coffee shop, we promise it won't kill you and you might even fall in love with the new place!
4. Be careful with credit cards
Although it may sometimes seem like credit cards are magical pieces of plastic that can let you buy whatever you want whenever you want it, this is far from the truth. A missed or late payment here and there may not seem like a big deal but these things can easily make your interest rates skyrocket. You need to be careful when managing credit cards. Credit cards aren't really as necessary as they seem and usually a debit card works as a great alternative – plus, no interest charges.
5. Create a budget
After looking over your expenses and making cuts where you can, it's time to make a budget and stick to it! Be reasonable and realistic when making your budget, this way you won't feel the urge to run to the nearest ATM when you realize you underestimated your budget.
-Tanaz Ahmed is a University of Michigan student who loves all things related to books, movies and music. Her favorite cause is education.
