Each week, we are sharing a financial wellness tip to help you make the connection between financial management decisions, your overall wellness, and student success. Money touches every aspect of our lives, and a lack of financial literacy can cause unnecessary stress and negatively impact our mental and physical health.
Avoid Overspending as a College Student
College is a time for exploration and growth, both academically and personally. It’s also a time when students learn how to manage finances, avoid overspending, and create balanced spending habits.
Here’s how you can get started:
- Create a budget: Before you spend, create a budget. A budget should include all your income and expenses, such as rent, groceries, transportation, and entertainment.
- Prioritize your spending: Make sure you allocate enough money for necessities, such as food and rent, and then prioritize your other expenses accordingly. Consider using the 50/30/20 rule - 50% of your income goes to necessities, 30% goes to discretionary spending, and 20% goes to saving and debt repayment.
- Track your spending: Use a budgeting app or spreadsheet to track your expenses, and see where you can cut back (if necessary).
- Use cash: Consider using cash for discretionary spending. You can physically see the money leaving your wallet, which can help you be more mindful of your spending.
- Limit credit card usage: While useful, credit cards can also lead to overspending and debt if not used responsibly. Limit usage and be sure to pay off your balance in full each month.
- Look for student discounts: Many stores and restaurants offer student discounts - take advantage of them!
- Plan ahead: Set aside money in advance so that you don't have to rely on credit cards or loans to pay for big expenses such as textbooks, a computer, gifts, or a vacation.
Don’t forget to check out the Financial Literacy website, and/or follow the team on Facebook, Twitter, or Instagram.
