Saving money when you are in college is a good thing yet most of us neglect the importance of doing this. We spend a lot in food and entertainment unconscious of the amount that we are spending in a day. Our behavior and habits could greatly affect our spending. We need to at least evaluate ourselves and start recognizing the essence of living a healthy yet less expensive lifestyle. We must remember that we are still students and we need to save for our future. Many college students go for snacks in between their classes and after classes.
It has been evident that most of us are tempted to eat when we have nothing to do. At the end of the day we still crave for something to put in our stomach, coffee is the best resort that we always consider. I used to go to Starbucks with my friends to get a cup of coffee and snack. I spent almost $5. 00 each time when I go there. One day I realized that I spent too much money for coffee. I calculate how much money I spent for a week and month. For example, If I buy a latte and cake.
A tall size of latte is $3. 50 and a piece of cake is almost $2. 00. That means I spend $5. 50 per day and $5.50 times 5 days are $ $27. 50 per week. If I calculate them into a month that means I almost spend $110 and about $1,320 a year. Being a more organized person would help you keep track of your finances. Creating a budget for the day is the first thing to do. There are some things to keep in mind when creating a college budget. Fist is to honestly assess oneself. It would be of importance in budgeting that you cut off the habits and expenses that would cost you much but had proven to be of little importance or of negative impacts on your studies like for example too much expenses on entertainment.
Entertainments like attending concerts and going to movies are the things that we liked a lot. It’s cool and fun but we need too consider the amount of our budget that is allocated on that part of our lifestyle. Secondly, consider your health. Budgeting does not mean that you have to starve yourself in order to save money, it is not healthy. In considering your health you have to evaluate your health needs and the cost to ensure that you are not paying twice. As an example a friend of mine wanted to save some money to buy a new ipod, she cut all her sources of cost especially food costs.
She had to skip a meal in order to raise the found by the date she had set to herself. What happened is that she becomes sick. Stress from school works and an empty stomach causes her body to breakdown its defenses. As a result, she was hospitalized the money she had been saving all the while for ipod is now spent for her hospitalization. See she paid twice, for hospitalization and then she was not able to buy her ipod. Lastly, continue saving. Saving at this moment could never be late. There can never be a best time to save unless you plan to go for it honestly.
In creating your budget you can be sure that you can spend a lot less than you usually had. (SallieMae, 2007) In budgeting you have to cross-out the use of credit cards. Credit cards are the same as debt. In a study it shows that students with credit cards had a hard time concentrating on their studies and prefer to work part time in order to pay their debts. Credits cards also are misunderstood by most college students they thought of it as a source of “free money” that could save them from regretting something they couldn’t buy. What they neglect is the fact that they are going to pay that after some time.
They find that it could meet their expenses but in reality it keeps on accumulating non essential purchases. (L. , 2003) One time I was with my classmate, he invited me to go out to shop. In the mall we had seen lots of cool stuffs. Whenever he likes the stuff he would go for it, he had a credit card you know. After that time I was not able to see him until he talked to me that he had reduced his academic load. What had happened? He was in debt to a large amount of money and he cannot afford to pay it with him having normal academic load. One of the most common ways of saving money is to go to commute to school and go on a hitch.
In college you can encounter lots of people that had a schedule same as yours. If your friends have the same schedule as you then you can share the car to save the money spent for gas. The average price of gasoline is $2. 19 a gallon, or $41 cents per liter. This means that if I can consume 2 liters per day in my way to and from school then, I can save as much as $82 cents when I share the car with my friends. (News, 2007) Non essential purchases are the ones that eat up the budget of every college student. Buying something that exceeds the budget that you set is a no no.
It could only left you with more credit than you had expected and end up with the problem on how to pay it. Saving is like counter checking your accounts. You have to spend less in a purchase but this purchase must also give you satisfaction. (Schonztler, 2006) Saving money when you are in college is a hard thing to do. Yet you have to do it. How? This could be achieved by strictly using your money on important things. Smart budgeting is necessary. It is important that you know how to allocate your resources carefully, this could be a good foundation for you to start saving money whenever possible.
“The best financial management strategy starts before you even walk on campus, by thinking about your finances and setting a smart budget,” –Tom Joyce
L. , T. D. (2003). OKLAHOMA COLLEGE STUDENT CREDIT CARD STUDY [Electronic Version]. Retrieved September 24, 2007 from http://66. 218. 69. 11/search/cache? ei=UTF-8&p=college+student+credit+cards&fr=slv8-msgr&u=www. ou. edu/education/csar/credit_card/credit_card_report. pdf&w=college+student+credit+cards+card&d=OWooj_4-Pf22&icp=1&. intl=us. News, C. (2007). The Price Of Oil [Electronic Version]. Retrieved September 24, 2007 from http://www. cbc. ca/news/background/oil/.SallieMae. (2007).
Budgeting for College 101: Sallie Mae offers tips to help college students create a realistic budget and stick to it [Electronic Version]. Retrieved September 24, 2007 from http://www. salliemae. com/about/news_info/newsreleases/082307. htm. Schonztler, G. (2006). College students fall deeper into debt [Electronic Version]. Retrieved September 24, 2007 from http://www. montana. edu/wwwbor/CollegeStudentsFallDeeperInDebt. htm. TODAY, U. (2007). Starbucks to boost coffee prices in U. S. [Electronic Version]. Retrieved September 24, 2007 from http://www. usatoday. com/money/industries/food/2004-09-28-starbucks-prices_x. htm.Sample Essay of PapersOwl.com