3 Secrets to Managing Your Money in College

When you are in college, away from home, balancing that bank account can suddenly feel monstrous and overwhelming. If you are not careful, you can lose control over your finances very quickly. Managing your money in college requires a certain amount of skill and willpower but you can do it with these proven tips.

Set Up A Checking Account

Many banks offer students free checking and saving accounts facilities, which help students save on withdrawal or fund transfer fees. Find out which banks offer this facility to college students and preferably set up a checking account with a bank that has convenient ATMs located in close proximity to the college campus to save on out-of-network charges.

Control Your Spending Habits

Are you an impulse shopper? If you are, you will have to change your spending habits and learn to exercise restraint. Start by learning to distinguish between your needs and wants. That expensive software that you had not accounted for in your budget may be necessary for the program you are enrolled in but do you really need to buy the most expensive pair of running shoes? Think of what it will do to your budget. Is it worth it?

Even if the purchase is not likely to upset your budget, if you don’t need it don’t buy it. Instead, it may be a better idea to put that money towards repaying your loan earlier.

If you have to choose between two ‘needs’, prioritize what you spend on and buy the second item later. Try as much as possible not to borrow money unless absolutely necessary.

Name Your Checking Accounts

Todd advises creating multiple-named savings accounts! For example, you can name one for clothes, travel, whatever you want.

Learn more about checking accounts in Todd’s Do Money Differently course.

Managing your money in college may seem overwhelming at first but if you lay the groundwork for smart budgeting and spending habits right at the outset, it will become easier for you. More importantly, you will learn to handle money more responsibly, a skill that will stand you in good stead years after you graduate.