Money Management Lessons Every Student Should Learn by Lakeisha Rolle
When it comes to college students, money management may not seem like a huge deal, especially if they are depending on the financial support of others. Financial literacy is considered a basic life skill and we must be intentional with teaching our children about adopting healthy money management choices which leads to increased financial wellbeing.
Money Management for College Students
Open a Bank Account
Here are a few quick tips when opening a bank account:
Open a separate account just for saving to keep it separated from where your income is received and where the bulk of your transactions take place.
Monitor your account activity frequently and take advantage of online banking to track your spending patterns.
Keep personal and business finances segregated. Opening separate accounts is the best way to avoid using personal income for business expenses and business income for personal expenses.
Impulse Spending Habits
Do not be afraid to pause and ask a few questions before making a purchasing decision whether you are purchasing an article of clothing or investing in a business venture. Use the 30-Day Rule to think about it over the course of 30 days. In addition, you may also consider using the cash envelope system to reduce the use of credit cards and determine how much cash you will spend in advance for each expense, by placing cash in envelopes – once the envelope is empty, that is it!
Earning Additional Income
As a college student, consider applying for an internship in your area of study or even starting your own business. Summer and Winter breaks provide great opportunities for employment. Additional opportunities to earn income include blogging, selling products you no longer use or starting your own business. Once you begin to receive income, open a bank account, be careful not to spend before you save and make wise investing decisions.
