About This Lesson
Finances change at every stage of life. Kids that are out of high school that transition into college are going to be on their own for the first time. They will have to find ways to budget their money from student loans, part-time jobs and work study pay checks. For most teenagers that are transitioning into college life there is going to be a steep learning curve. They need a little bit of guidance to get themselves situated.
New To College
When students are getting into their freshman year they are green to the world of finances. They may also be getting their first job as they start juggling college courses. These students are going to get a W2 Form for their taxes, and for most college students tax responsibilities will be something new. It is going to be cheaper for college kids to do their taxes themselves. The key is making sure that their deductions are correct.
The thing that college students need to realize is that they are going to have to budget their money and think in terms of budgets for an entire semester. A lot of students will get thousands of dollars back from student loans. This is after tuition and dorm fees have been paid. The student is going to have the responsibility to plan for using this money wisely.
The Debit Card vs. The Credit Card
The credit card is shiny and alluring. Many teenagers that have delayed loans will take interest in the credit cards to pay for books and other essentials that they need while they are waiting for the loan reimbursement check. The credit card should be paid back in full if the student is waiting on a loan check. Credit cards should only be used to handle emergencies in a college environment. It is easy for students to find themselves paying for lunch for friends and hanging out much more than they can afford to.
Students that cannot resist the urge to overspend should avoid the credit card altogether and use a debit card instead. If they are working they may have to wait until they get paid to buy books. These students should download the app for their bank on their phones. They should sign up for email alerts so they will know when their balance is below a minimum amount. College students should also utilize the resources for these banking institutions to make sure that they are putting money aside for emergencies.
Making Every Dollar Count By Pursuing The Discounts
College students should look for the discounted meals and find all that deals that will help them save on food. If they have the meal plan for the campus cafeteria they should use it. This is going to play a big part in helping them save money.
College students should never forget that their first job is school, but they also need to remember that money management is a closely connected unofficial second job. Managing funds and stashing money away for savings should be a priority.
