It's no secret that higher education is far from cheap. What's more is that most young people aren't financially independent and can't rely on their families' help, so they have to take out student loans in order to pay for college. Add to this the costs of rent, food, books, etc., and you can see why it's so important to learn how to manage your money wisely. In this article, we'll give you some useful tips on how to do it.
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Follow the 50/30/20 Rule
First things first, you need a budget. Basically, it's a plan that describes how you're going to allocate your income. It can be pretty confusing, so we recommend starting with a simple rule of 50/30/20, according to which you can spend 50% of your income on your needs, 30% on whatever you want, and 20% on savings or loan repayments. Top financial advisors stand by this method.
So, get a piece of paper, write down a categorized list of your monthly expenses. Now, it's understandable that some people will need to spend more money on specific categories than others. Perhaps, they need expensive medicine. Luckily, you can adjust your budget and make up your own rule, one that works best for you.
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Track Your Expenses
Know that you've set a budget for yourself, it's important to make sure you follow it. There are plenty of free budgeting applications to help you do it, but you can also use anything from a Notes app to Excel, as long it works for you. Once you know how much you spend on each category, you can adjust your budget accordingly. Review your monthly spending to understand which types of expenses you should cut back on.
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Put Your Money in a Bank
First of all, it's much easier to track your spending when you can clearly see when and where the money's going. Secondly, you can even put your savings into an interest-earning account and earn a passive income this way. And last but not least, you'll have quick access to any banking service you need.
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Apply for Scholarships and Grants
There's a common misconception that it's incredibly difficult to get financial aid to pay for college. In reality, the possibilities are endless. You can get grants and scholarships from the federal and state government, your educational institution itself, a non-profit organization, and even a private company. But in order to find out what kind of aid you're eligible for, you need to do some online research.
There are scholarships for academically, athletically, or creatively gifted students, minorities, women, and so on. Plus, many tech companies offer grants to STEM students who pursue complex majors. So don't give up until you've exhausted all available options. One thing to consider, though, is that you might need to write an essay to apply for financial aid. If you're worried because you're not good with words but don't want to lose that grant, you can ask a professional writer to help you.
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Save Money on College Supplies
As a student, you'll need to spend a lot on books and other essentials, but what if we told you that you don't necessarily have to buy new stuff? Instead, you can buy used college supplies, rent them, or share them with fellow students. This way, you'll not only save money but also reduce waste.
For example, if you're an English major, you probably have extensive reading lists. Your college library may have some of the required books, but they won't always be available. Therefore, it's better to get a public library card or buy used books online. Meanwhile, STEM majors often need powerful calculators and other appliances that can be repurchased from previous owners at a lower price. You can also sell your college supplies when you no longer need them and get some extra money.
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Get Student Discounts
Many companies offer special plans and prices to students, from streaming services to retail stores. However, they don't always advertise them, so you need to put some effort into finding these deals. Always know your options as a customer. Even a 5% discount can make a huge difference when you apply it to a product that you purchase regularly.
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Choose the Right Health Care Plan
Many students neglect their health, thinking they don't need to worry about it while they're young. That is until an emergency happens, and they realize they need reliable access to quality health care. So, before you go to college, we suggest you research your options and read reviews from other students.
For example, in the USA, students can stay on their parents' health insurance until they're 26. Also, some colleges offer affordable health insurance, but if you don't like any of these options, you can get yourself an independent plan through a health insurance marketplace. Of course, some of you are lucky to live and study in countries with free healthcare, and you don't have to worry about medical expenses as much as others. Either way, remember to stay healthy and take good care of your body.
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Get Affordable Help with Your Studies
Even though it's incredibly important to save money as a college student, you should never lose track of your main goal, which is attaining higher education. So don't be afraid to get academic assistance whenever you experience any difficulties. There are plenty of options, from tutoring to custom writing services, some more affordable than others. For instance, you can join a student-run study group or sign up for supplemental courses offered by your college. If you're struggling with one specific assignment, you can get it from online writing services such as CustomWritings.com. The way it works is you place an order on the website, and then the writers help you create original essays or other types of papers from scratch.
Final Thoughts
Money management is a difficult skill to master, but getting a knack for it is a crucial step towards financial security. Even though we've written this article for students to better understand how they can spend less and save more, these tips can work for anyone. You don't need to hire a professional financial expert to create a personalized budget for you. Just be practical and keep looking for new opportunities to save money. Adulting may be hard, however, college is a great training ground where you can learn some basic skills you'll be using for the rest of your life.
