How to Start Saving for Your Future While in College

By Uloop Guest Writer on January 22, 2014

By: Lionel Bryant, University of Southern Florida

With just four states requiring kids to learn about personal finances in high school, it’s little wonder that most American college students are clueless about money. Half of them have four or more credit cards, and more than 80 percent fail to pay off their credit card bills. But with a little hard work and determination, you don’t need to join the masses swimming in debt. In fact, you can even start saving money for your future.

Stick to the Essentials

 Image via Flickr by Images of Money

Credit cards might free up your finances, but they also make it easier to spend money on things you don’t need. Evaluate what you’re spending money on and decide what’s necessary and what’s not.

If you see an item that you’ve “just got to have,” go away and think about it rather than buying on impulse. Avoid grocery shopping while you’re hungry, as your rumbling tummy can see extra items sneaking into your cart. Examine your cable, internet, and phone packages and see if you’re paying for extras you’re not using.

Adopting these frugal habits could put you on the path to becoming the next John Ferraro!

John Ferraro wasn’t too different from you when he was a student at Milwaukee’s Marquette University College of Business Administration. He earned a Bachelor of Science in 1977 before becoming a certified practicing accountant and joining Ernst and Young. His money smarts saw him quickly rising up the ranks. Today, as the company’s global chief operating officer, John Ferraro E&Y oversees all facets of the organization.

Don’t pay penalties

Sneaky fees and charges can quickly eat up your finances and leave you with nothing to show for it. But you needn’t just accept these penalties; it just takes a little organization to avoid them.

Using a credit card is a great way to establish a good credit rating, but it’ll attract interest unless you pay off the balance every month. The average college graduate racks up $20,000 of credit card debt. Even with a low-interest credit card, this balance attracts around $167 in interest every month. Most college kids wouldn’t want to give this kind of money away, so why give it to a credit card company?

If you pay your bills late, chances are you’re being slugged with fees of around 10 to 15 percent of your outstanding balance. Paying promptly can save you big bucks in the long run. Add bill payments to your calendar or sign up for direct debit to avoid the charges.

Take Advantage of Your Student Status

Your student status is the key to plenty of discounted and free goodies. Many retailers offer discounts to college students, so make sure you shop at places you can save. Seventeen’s website has a great list to help you get started.

College campuses also offer plenty of perks for students, so why not take advantage of them? You can get a campus gym membership for free or close to it. Many also run movie nights and other social activities for far less than you’ll find in town.

So don’t just accept that college life means financial ruin. Adopting good money habits early can help you build a stable financial foundation for your future.

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