Let's talk money

Photo courtesy of
wealthforteens.com

     I have a lot of coats. And shoes. And clothes. And other things. My friends call me a shopaholic. I'm either in denial or have a very different definition of what a shopaholic is. But regardless, there are things I just can't help but be drawn to and splurge on. Has anyone else been in this situation before?
     Sometimes I think as a college student, I have a hard time managing money because I'm in this "limbo" kind of world. Yes, I do have to pay for the townhouse I live in and the food I eat, but I don't have to deal with landlords or the other financial aspects of "being on my own." But of course I want to be prepared for the future because it's going to be here sooner than I realize.

     Whether you're a penny pincher or a shopaholic, like me I guess, having a good sense of how to manage money in the best way possible never hurts - even if you're a college student. So here are some tips for young adults who find themselves in the same place as I do - kind of prepared for the world of finances and kind of not.

     I'm guilty of not following this tip. As a senior this year, I've only begun to start looking at my loans to figure out how much money I'm going to have to start paying off. So, I warn all of you out there who are only beginning to consider college - do your homework!
     Here are some simple ways to be prepared and knowledgeable about how to get the best loans you can.

• Look for scholarships - this way you'll have less money to pay off when you graduate!
• Borrow only as much as you need - figure out what scholarships you'll get, take a look at how much money you and your family can put towards paying your tuition and look for other opportunities to decrease your tuition so you won't take out more money than you need to.
• Vote federal loans - comparisons of federal and private loans have shown that federal loans are the better choice because they have a fixed interest rate which means that rate will never change.

     As much as people think I have a shopping problem, I think I do a very good job of watching what I spend and when I use my credit card. It's very easy to get carried away with one quick swipe of a shiny, plastic card, but awareness of what you're doing is always necessary.

• Read the fine print - you always want to be aware of what you're agreeing to.
• Know your card limit - this will save you lots of aggravation and money!
• Be sure to pay your bills on time - this will save you money in the long run.

• Find a part-time job - the time spent working will be time not spent shopping! And when you have an idea as to where your money is coming from and how hard you had to work to earn it, you'll be more careful about how you spend it.
• Start a savings account - make a commitment to put a certain amount of each pay check into this account. You'll be surprised where you find yourself in a few years as long as you don't touch it!
• Be responsible - if you have a question, ask someone. If you don't think the option you found, or are being offered, is the best for you, look elsewhere. Don't make a decision you aren't fully committed to - this is your money we're talking about!

     Money doesn't buy happiness, and I don't think it ever will. So, managing your money isn't about becoming super wealthy to find happiness and well-being. It's about learning how to make the most of what you have, knowing your limits and finding ways to be happy and satisfied with the amount of money you have. By taking your finances and money management skills into account now, as a college student, you'll have a better grasp on this once you graduate and less to worry about in the future - and less stress always means better psychological well-being.
     Your four years in college are great years to begin learning how to manage your money because of that "financial limbo" you're in. Use this time wisely, learning the ins and outs of finances so when it's time to graduate, you've got this covered.