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8 Money Management Tips for College Students

You can feel financially secure if you have enough money to pay for what you need today and in the future. And, this is one of the many reasons many of us save money and invest (if need be). Here are 10 simple money management tips that can help you even if you're still finishing college.

1. Set aside some cash in different compartments of your wallet. 

Ever found some extra cash in your wallet? Did you feel happy finding them "out of nowhere"? I know I did. By doing this, I trick my mind into thinking I have lesser cash on hand to spend, so I won't spend unnecessarily. This is especially useful in "emergency" moments.


wallet with dollars

2. Carry less cash. 

Withdraw just enough money from your bank. The idea is to hold lesser cash. When you open your wallet and find that you only have $5, chances are you're less likely to spend it. Of course, if you do need to spend it, you'll have to withdraw money from your ATM card. This gives you more time to think whether it is a need to spend that money.

3. Track your cashflow. 

About 95% of my peers, in college days, do not know where their money come from and go to. They have little or no idea they spend an obscene percentage of their money on entertainment, food, transportation, and clothing. I challenge you to track your money-in and money-out for three whole months. You'll know what I mean. I use an iPhone app to help me do so. It is ExpenSense. You can use any other similar applications to help you too.

4. Save before you spend. 

This is essentially the "Pay Yourself First" principle. This compels you to treat savings as an expense. This way, your habit will be to earn-save-spend, rather than earn-spend-save. This habit will have a huge impact on how rich you become in future.

5. Go home early. 

Saying staying out late is expensive. Imagine calling a service late night just to get home. The more you do this, the faster your money will deplete. If you have your "own" car, you have to know that the fuel requires money too. Who pays that money? You can always go out with your friends in the day time and go home before the late night charges kick in.

6. Pay with your credit or debit card. 

By using your credit or debit card, you can track your expenses for the month on a single record. This will help you have a better idea of how you spend your money, i.e. your spending pattern.

7. Always pay up your credit bills on time. 

If you do hold on to a credit card, you ought to know that an average interest rate is 20% of your credit bills if you fail to pay up. For example, if you spend $100 on credit and you missed your payment at the end of the month, you're going to pay an additional $20 on top of your $100. This is not worth it. Pay up on time, at the end of the month. Avoid delayed nightmare.

8. Be accountable of how you spend your money. 

Talk to someone whom you can trust. It is even better if that someone is more experienced in handling money wisely. It need not be your parents. If you really could not find anybody, you can journal down your thoughts on how you spend your money every month. This way, you'll be more aware of the stewardship of your money.

After following the tips above, get yourself some financial education. It is, by far, the best financial investment anybody can have. It is relatively inexpensive. You can grab a book to read and learn. You can attend seminars. You can talk to people who have more insight in a certain money topic than you. Keep learning.
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