In US news and world Report, we understand that college life is busy. You may feel that studying financial literacy – even with your research – is just too much to handle. Well, you can stop worrying from now on because our goal is to make this super easy for you.
If you focus on managing your money properly, you will be able to graduate with zero credit card debt and a good credit score. And what will that great score do for you? This will help you get approved for an apartment or auto loan if needed. Depending on where you want to work, it can also help you land a job as you wish.
US News experts are passionate about financial literacy for college students. We’ve put together a guide that covers hot topics in your life, such as living on your own and setting a college budget.
You are at the beginning of an exciting life! This is the right time to become a money lover. Take a cup of coffee or soda and dip it.
Live on your own
Once you have been on your own for a while, you will begin to realize this annoying fact: Life is expensive.
But this does not mean that you have to go into debt to survive or live on ramen noodles to pay for your books. With a little research, you can save anywhere from a little money on everyday expenses.
At US News, we know you’re busy, so we’ve done the legwork for you. And as you know, there is an art to being frugal and you are still getting what you need. Just relax and explore these topics so that you are ready for life on your own.
Pulling Your Grocery Dollars: There is a great sense of freedom to know that you are in charge of choosing groceries. But, of course, you are also in charge of paying for them. You can do some treatment, but you need to make sure that you do not overdo it.
Deciding how much you can afford to rent: Okay, this requires a lot of honesty. Set your fare limit before shopping for a place. Don’t be at risk for an apartment you can’t pay for. A common way to determine how much rent you can pay is to calculate 30% of your monthly income. But there are other factors and expenses to consider before signing the lease.
Cost reduction on utilities: And what about the cost of utilities? We have got your back. Check out these simple methods to reduce utility costs.
Pay your taxes: This is an obligation we all must bear. Try to think of it as a way to give back to society. Know that tax laws and filing dates are not guidelines; They have strict rules and dates to follow. Read the tax advice here carefully, and you’ll be all set.
Avoiding Common Money Mistakes: When you are new to wealth management, you don’t know what you don’t know. There is a lot more to personal finance than limiting your lattes. That is why we have collected the most common money mistakes from students and have given advice on how to avoid them.
Working while going to college: If you need additional money, which applies to almost every college student, then check out this federal financial aid opportunity.
Travel on break: Well, spring break may be in your future, too, when it is safe to travel again. Or maybe you are a senior and you need to move to the city where you plan to live. Whatever the reason, there are many ways to save on travel expenses.
Savings and Investment Basics
Now that you are on your own, it is important to build your financial foundation. But it is not as intense as it seems.
Your foundation includes a budget and a way to track spending. Luckily, there are many free options for you to choose from. And many apps are multifunctional, allowing you to budget and track in one place.
We are going to talk about credit cards in the next part, but before you think about getting a credit card, you have to keep your financial base. It is important! So let’s correct this.
Own the budget. Having a budget and actually following it will sink you into debt or there will be no overdrawn checking account. If you have no way to control your money, it will control you.
Since your phone is with you all the time, a budget app can mean a lot. But there are also free options online, if you like it.
Save money for a rainy day. It may seem impossible to save money while in college. Everything is so expensive, isn’t it? But that’s why you have a budget. You will find that you can cut some corners here and there and save a little.
Find a new bank. You probably already have a checking and savings account in a bank. When you were in high school, your parents probably helped you. But if you need a bank in your new area, here are some guidelines to follow.
Start thinking about investing. No, you do not need to become a Wall Street expert before graduating. But college is a great time to learn how investing works.
This is an area that travels a lot of people. Not just college students, but people of all ages. reason? Credit is not comfortable. This is really something that takes little effort to understand.
To make it easy, let’s divide this topic into three specific areas: credit report, credit score, and credit card.
Basics of Credit Report: Your credit report includes personal information, credit accounts, and any negative items, such as a collection account. The report is basically your credit history. Your credit score is calculated using the information in your credit report.
Basics of Credit Score: There are some people who believe that you do not need a credit score, but it is slightly lower. Having a great credit score saves you money in many areas of your life, including car insurance and mortgage rates. And graduating with good credit helps you get approved for your first apartment.
Credit Card Basics: Note that if you do not use the credit card responsibly, something bad will happen. You can graduate with credit card debt not only to pay off student loans. But if you have self-discipline and your financial foundation is in place, you can use a credit card to build a good credit score.
It is hard to get without a car, especially if you are coming to college. Here are some tips that will help you get the right car and get the best deal possible.
How to buy a house
Thinking about buying a house or condo after starting a new job is not insane. If you are building credit responsibly in college, you can get ahead of the pack.