For the actual 2minute video, check: Here
But here’s a summary:
If you’re going to be getting off of financial aid from parents/family, here are a few tips to help you live through your college years without drowning in debt that you could have easily avoided.
College students are usually short on cash, but yet still over-spends. The average college student has $3100.00 USD in Credit Card Debt.. On at least 4 different cards.
So how can you deviant from that norm?
Step 1:
Distinguish your wants and needs. You can do this mentally. For example, going to the movies every week with friends? That’s a want. Healthy food at the grocery to prevent you from starvation? That’s a need.
Step 2:
Establish a budget. Anticipate your expenses for the entire term, write it down, and compare it when your bank account balance/income. Don’t just keep it in your head. For example, Rent: $800, Phone: $40, Groceries: 250, Entertainment: $100, Clothing:$75, etc.
Why is this important? Because on a day by day basis, you can’t really comprehend how much those extra luxury items are costing you over the long-run. A Starbucks coffee (let’s guess $3, because I don’t drink coffee) will cost you $240 if you drink every weekday for 4 months. (That's almost half the cost for a roundtrip plane ticket to Copenhagen,Denmark from Toronto,Canada)
Step 3:
Control your impulses and limit your spending. One way to do this would be a prepaid debit card that can be reload up with money every month. Another way is set your budget on your credit card so that when you’ve over that limit in a specific category, your payment wouldn’t go through. (This second option only came out recently for bank of America MasterCard..)
For the ladies who likes shopping: Before buying that cute dress, give yourself 24hours of cool-down time. Sometimes you will not still want that dress enough to go back to the store after the 24hours.
Step 4:
Not really a tip to limit your debt, but important nonetheless; building a good credit rating. You’d need this later on in life for borrowing money, applying to certain jobs (yes, some companies are looking at that now to decide whether to hire you or not), etc. So keep a credit card with you, but use it sparingly. Then PAY OFF THE BALANCE EVERY MONTH IN FULL AND ON TIME!! Or else that’d defeat the whole purpose.
“Establishing strong money management habits in college can lay the ground for a solid financial future.”
...
Which reminds me that I’m over-spending on salmon lunches..
BUT IT’S SO ADDICTIVE! D:
