I get it. First of all, it feels like spending money is, in principle, a fundamental part of being in college. As college students, something is always being sold to us, be that a new computer or a going-out top. Also, I’d be ignorant if I failed to admit that my personal caffeine habit has done me wrong financially this semester. My love of coffee and energy drinks has frustratingly cut into my hard-earned savings.
Now that I’m officially halfway into my first semester of college, I’m learning about the importance of taking care of my finances. Here are some tips I’ve learned through my own personal experience, as well as some motivation that helps me avoid unnecessary spending.
First, here are acouple general financial tips to help you get started:
1. Open a credit cardÂ
If you haven’t yet, now is a great time! Start building up your credit score early. It’s not as intimidating as it seems, and I’ve personally really enjoyed learning to take care of my credit! Just make sure you make all your payments, and talk to a trusted financial source (parent, sibling, friend in Haas, financial advisor) when you decide which card is right for you.
2. Open a savings accountÂ
Similarly, putting cash in savings is an excellent habit to get into early! It’s like an adult piggy bank. I add part of each of my paychecks to savings, and it’s both fun and rewarding to watch my balance grow. Unlike a piggy bank, you can also collect a modest amount of interest from your bank, which is one of the highlights of my month.
Now, here are the things I think about when I really want to spend money but logically know it’s unnecessary. Basically, things I really want to save up for:
1. Grad schoolÂ
Education is so important and something I’m extremely passionate about, but it’s also an investment! I want to do everything in my power to make sure I’m set up well to attend grad school in the future without the burden of my past financial mistakes holding me back.
2. TravelingÂ
One of the best ways to learn is through exploring. The greatest barrier to seeing all the wonderful things the world has to offer is cost, both in time and money. In the future, it will be a cost to take off work to travel, and it will naturally cost money to physically reach my dream destinations. I like to think that savings account of mine directly correlates to things like future plane rides, gas, and hotels. Being mindful about my finances now will support me in all the future journeys I wish to embark on. Some places I would absolutely love to visit include Costa Rica, Copenhagen, Cape Town, Rome, and Tokyo.
3. Big ticket itemsÂ
I would love to be able to buy a car and a house when I want to! Saving a little bit of money here and there by allocating a bit of each paycheck to investing in your future adds up over time. That savings account balance is for future you to enjoy, and houses are super amazing and super expensive.
4. ExperiencesÂ
I crave experiences, like Coachella, Outside Lands, Rolling Loud, and every music concert and festival ever, in addition to opportunities like experiencing all the MLB ballparks, swimming with sharks, and overall just doing lots of things while I see new places. Again, the only thing really standing between me and all these insanely cool experiences is money, so I want to do everything in my control to budget, save, and plan now so I can have an enriching life as a young adult.
5. Down the lineÂ
This one is lame, but it’s cool to save for retirement and all early. It’s like studying for a test. Work smarter, not harder. Start preparing earlier so it’s less stressful down the line.
As a college student, it can be difficult to prioritize caring for your personal finances. We’re already so crunched for time, everything is so expensive, and advertisements seem to be constantly pushed on us. But, there are a couple easy ways you can start taking care of your finances early, and there are plenty of good reasons why you should try to avoid unnecessary spending, but make that effort to grow your savings and improve your credit instead.