Money, Honey

WeHeartIt

I really don't like talking about money. I don't like thinking about money much either. With college costs rising almost every semester and jobs getting harder and harder to find, contemplating finances can be incredibly overwhelming. I never forget how fortunate I am that my parents are paying for my education and barring any unfortunate financial changes, I'll be able to graduate undergrad without any student loans. I'm equally fortunate that my parents don't charge me rent or utilities. The fact that I have been lucky financially could have made me very spoiled and naive about financial matters, but I'm far from that. I'm a proponent of very basic financial ideas and that's helped me to have a financial plan for the future.
Here's how I'm managing to move toward my financial goals:

• Start saving early: Working while in college is difficult and I definitely understand not being able to work 4 days a week. However, a job is a job and it will only help you in the future to have employment. Whether you're working retail or as an office assistant on-campus, if you're making money you don't have to take out loans to cover books or all of your living expenses. Another benefit to making money is saving it. The general financial rule is to save 10% of every paycheck. If you make enough money and you don't need to spend it all, you can always save more. By doing so, you could graduate with a solid emergency fund or save up for a trip, a car, or another big ticket purchase.
• Avoid credit cards: Freshmen in college are inundated with student credit offers. I don't have a credit card because I believe that if I don't have the money for something right now, I don't need it. The idea of credit cards, like loans, makes me very nervous. I can understand having one for larger purchases later in adulthood, such as buying your first home, but as a college student, credit cards really are not necessary. 
• Be smart about loans: These days almost everyone has to take out some type of loan to get through college. As I said, it makes me nervous, but in many cases, it is a necessity. The problem isn't necessarily the loans, it's the amount of money people take out in longs and the amount of interest that will subsequently accrue on those loans. There is honestly no need to take out $100,000 in loans for undergrad (unless you are an Engineering major at Harvard or M.I.T., I think then you can get a pass). If you have to sacrifice a trip abroad or attend state school instead of private school, it will be worth it. It's understandable that you may not know what your major will be before entering school (I've definitely changed my mind about 5 times), but it is important to do research to find out the earning potential of your major so you don't end up with exorbitant loans. 
• Work with what you have: I have to be honest here, my car is sitting not-so-pretty at 113,000 miles and it's not in the greatest condition. My laptop just may be ducktaped to keep the screen intact. I could afford to get a new laptop and car, but it's not a necessity and I'd much rather focus on saving my money. It's easy to forget that, although economic times are tough, there are so many people who make it work with so much less. 

Posted in: finances, lifestyle, money, saving