Not Just Extra Credit: Tips for Student Money Management
As students navigate all the experiences of college life, they may notice it’s increasingly important to cultivate healthy habits around spending. Chatham student Chenoa Baker— not an expert, but known for being a frugal person— gives her fellow students tips on how to create a zero-based budget, manage credit, balance checkbooks with cashback, and cultivate financial self-discipline as an act of self-care.
Unless you are an accounting or business major, finances might make you dizzy. There are so many things that demand your attention and dollar bills— student loans, tuition payments, shopping, meal plans, textbooks, bills, and random, unplanned expenses. Before you tune out because managing those things is stressful, have no fear! There are many ways to keep your college spending habits at bay.
This semester I created a zero-based budget. A zero-based budget is a way to account for all your earning and spending by budgeting for what comes in and goes out until there are zero dollars left unaccounted for. After Googling it, I learned that making an excel spreadsheet detailing my earnings (income, gifts, internship stipends) and my spending (groceries, textbooks, self-care) can balance my input and output. If the money going out exceeds what is coming in during a month, there is a problem. This monitors spending and identifies where to cut back. If you are not a fan or do not want to do something as intense as a zero-based budget, try to keep track of receipts, and put at least 10% of your income into savings before paying for monthly expenses.
Another huge thing to be aware of, as a college student, is credit. Oftentimes credit card companies market to college students— my advice is to ignore them and keep it simple. Get one credit card, if you desire, and use it as a tool. Use it only to boost your credit, not when you don’t have the money in your checking account. Also, mark on your calendar when your credit card payment due date is and plan to pay it then every time.
Finesse your budget by finding ways to get cash back. My family would call this tip “making a dollar out of fifteen cents.” Get cashback by reselling textbooks (or only renting them in the first place), consigning clothes at local thrift stores, filling out product reviews, and utilizing goods and services that operate on point systems that eventually allow for discounted items (like some hair salons, Sweet Frog, etc.). Cashback is a great way to stabilize the input and output of your money.
Lastly, spending wisely and abiding by a budget boils down to self-discipline. Contrary to popular belief, obsessing over finances or not buying anything will not help you. Simply living within your means is key. Always ask yourself: do I really need this? Truth is, that is hard. Therefore, balance that mentality with giving yourself grace. Just develop boundaries with yourself, which you will appreciate in the long run. This is an essential tenant of self-care because if you cross boundaries with yourself, it causes unwarranted stress.
Since I view financial security as an important component of self-care, I am happy to splurge on art events, candy (for study motivation), and tea. I am happy to live within my means and enjoy great things life has to offer in a budgeted way— this keeps the stress low and fun at an all-time high. I hope that you find ways to manage your finances in college, too.