Successfully managing your finances as a college student requires discipline and a healthy sense of respect for money. Respect doesn't mean greed; it means being mindful of and responsible with your money.
Begin your fiscal training by always being aware of how much money you have: In your wallet, keep your paper money in order by denomination — don't just shove them in; and review your bank statements every month. These small steps pave the way to budgeting wisely; keeping track of your savings and checking account; and knowing how much "fun" money is available.
Here are some ways to keep your finances organized:
Invest in some inexpensive budgeting software. Set a personal-spending budget and stick to it! Determine your monthly income by listing all of your money from your job(s), cash gifts, and savings. Next, list all of your monthly expenses. Be sure to place your fixed expenses — rent, utilities, water, parking, etc. — in one section that can't be tapped for other reasons. Deduct monthly fixed expenses from your monthly income. The money that's left is what you can spend on extras such as entertainment, eating out, and clothes.
Review all bills and keep them safe. Don't just toss that unopened envelope onto a pile of stuff. Open it up. Read it. File it in an appropriate place until you're ready to pay it. Errors do appear on bills, and you don't want to pay out on something you don't have to. Carefully reviewing your bills can also alert you to unauthorized spending in cases of identity theft. Invest in a shredder to deal with anything that has your personal information (date of birth, Social Security number, and so on) on it, including bills, bank statements, medical statements, and credit card applications and statements.
Set up automatic online payments for fixed expenses. If necessary, jot down the due dates on your calendar so you'll know which bills got paid and how much money got deducted from your bank account.
In general, avoid getting a credit card — they do serve a purpose, but there's a high potential for misuse among cash-strapped students. Instead, use a debit card that immediately takes money out of your bank account. Plus, you can never overdraw it, as it's set up to pull from your savings account if your checking is for some reason emptied. This way, you're never spending money you don't have.
Try to set aside a bit of money for crises that inevitably arise. This one can be a challenge since money is already so tight, but you'll be glad to have it in an emergency. Saving even just a few dollars from each paycheck will help. Skip a night out once in a while and put that money into your savings. Consider any other expenses, such as dining out, that cute outfit, or buying a round of drinks for your new "best friends" to be luxuries (or even foolish!). It all adds up!
