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Money Saving Articles

Personal Finance Tips for Students

Personal Finance Tips for Students

Whether you’re a high school student saving up money for your first car, a college student saving up for your next big spring break trip, a graduate student saving for your adult life, or a grandparent budgeting for retired life, careful money management is key. With job prospects remaining low and college debt rates soaring, more and more college undergrads, graduate students, and recent grads are looking for a jumpstart into both financial freedom and financial responsibility. Here are three personal finance tips for students.

Be a Savvy Borrower

Student loan debt has been a hot topic of debate for the past year or so. Student loan debt has reached an all-time high just in time for college graduates to enter a dismal job market. Undergraduate education alone is costing some students up to 100,000 dollars of debt repayment. Throw graduate school into the mix and some students are facing some very serious numbers. That being said, there are ways to respond to student loan debt that can help out. First, you have to become educated on the topic. Understand all of your loan terms, know when payments must be submitted, know what the minimum payment is, and know how long it will take to repay this debt with the payments you plan to make. The best defense is learning more about your loan/debt situation. Next, as graduate students and business students it can be easy to default to the mindset that “you’ll find a job eventually—charge expenses and rack up debt now to pay off later”. Obviously, this is a dangerous way to look at things. Thinking about the future is smart; relying on the future you envision is not.

Saving for the Future

The best way to save for the future is to follow the mantra of “pay yourself first”. A portion of the money you earn, whether you’re being paid to complete your business degree or you’re working through school, should go to your savings account. You should consider your savings account a monthly bill you have to pay each month. Whether its 100 dollars or ten, any little bit that you add to your savings account is useful and wise. That savings is your way of looking towards the future. You want to stay on top of payments, debt, and spending now, but savings is also an important responsibility. Try to create a savings plan that actually works for your spending and money habits. Every individual has a different financial situation and deals with money in their own way. Don’t think that just any money plan is going to work for you.

Keep Careful Records

Another important aspect of financial responsibility and budgeting is keeping careful records of spending, saving, and everything else. You want to understand where your money comes from and where your money goes. Keep track of your finances, so that you can get a better idea of how to devise a budget. As graduate students, spending can be easy. You’re busy and tired a lot of the time. Eating out is a simpler option at times. But, this can also be much more expensive. Try to gain a full understanding of where you put your money. Try to get into the habit of keeping careful financial records at a young age. As a graduate student, you’re an adult and you need to know how to handle your money records. Write things down, keep important receipts, keep tax records—these things are very important. By keeping careful records of your finances, you can more easily understand your borrowing situation and more carefully plan your future.

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