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Heading off to college comes with an exciting sense of freedom. Now that you’re living away from your parents, your new environment provides new opportunities to become more independent, including the chance to engage in some real financial planning to ensure you make sound economic choices now and in the future. Here are several tips to help you manage your personal finances while in college.

4 Tips for Managing Your Finances While in College

1. Establish a Budget

List all your monthly expenses, including rent and utility bills, so you’ll know how much is needed to pay them. Create a budget based on work-study wages or other sources of income. Ensure you use the funds to pay the essentials first. It’s fine to leave a little financial room for fun activities without busting your budget. Determine what the amount will be and commit to it.

2. Use Credit Cards Wisely

financial-planningCollege students are typically inundated with credit card offers, especially during their freshman year. If you decide to use a card, remember to use it sparingly and only in emergencies. Always pay the balance off in full each month. Establishing credit while in college is a good start towards building your credit score, which will come in handy for your post-college financial planning. With a higher score, you’ll be able to access better interest rates on car and home loans in the future. 

3. Create an Emergency Fund

From an unexpected auto repair to needing an additional textbook, many different scenarios may call for immediate access to cash. If possible, create an emergency fund designed to cover these scenarios. Financial planning specialists suggest starting with an amount that works with your budget and income and build on it until you’ve reached at least $1,000. Resist the temptation to use it for impulse buying. This will ensure that the funds will be there when you’re in a tight spot.

4. Start Saving

You may think it’s hard to save while in college. However, with a bit of planning and diligence, it’s possible. Determine how much you want to save each month. If you’re employed, arrange to have this amount automatically withdrawn from each paycheck into a savings account. You can increase your monthly deposits as you see fit. 

 

 

Nicole Gumm Groseclose Insurance Solutions in Clifton Forge, VA, provides customized financial planning strategies to individuals from all walks of life, including college students. Having served the community for more than 16 years, Nicole understands the importance of budgeting, saving, and making adjustments for life’s milestones. As the owner of an independent insurance agency, she takes the time to listen to her client’s unique needs and offers personalized guidance. To learn more about how Nicole can assist you, call (540) 968-1569 or visit the website

 

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