New students going to college for their first year may be surprised by the costs of certain things. This may even be their very first time ever living out on their own. Being able to manage finances will ensure that the student will never have to worry about running out of money by the end of each month. Here are some tips that freshman can use in order to stay on track with their finances.
Limit Credit Card Use
Credit cards should solely be used for emergencies only. If the student feels that they may spend more than their means, they should only get one credit card that has at least a $1,000 credit limit. Everything that is charged to the credit card should be paid off in full each month. This will ensure that their credit will stay in a good standing, and they do not have to worry about going into debt.
Pay Towards Student Loans
Individuals know that the student loans generally do not have to be paid on until six months after the student graduates from college. While the student is in school, the loans will not accrue any interest to the loans. This is a great advantage for students. If payments are made, it is going to go towards the principal balance only making it lower. This will save the student hundreds of dollars in interest alone by the time they graduate. This will help decrease stress and ensure that the loan will be affordable.
Textbooks can be extremely expensive when it comes to college. Students do not have to buy brand new books for each class that they take. There are used books available as well as books that are available to rent. By renting a book or buying a used book, the student can save up to 50-percent off the original price. This large amount can turn $1,000 a year worth of textbooks to around $500. This amount of savings can be used to purchase other items that are needed or go towards the student loans that were taken out.
Make a Budget
A monthly budget is going to ensure that the student will not spend beyond their means. The student needs to keep their budget in mind at all times and ensure that they will not go to the ATM when they feel the need to get more items. The ATM fees may seem small, but they can add up very quickly. This is why it is essential that the student sticks with their budget and only purchases items that they have to use in order to make it through the month. Any left over money for the month should be put back into savings.