Money management is a learned skill. It is important to understand how basic budgeting and finances work while you are still in college since, well, eventually you'll have ginormous marketing budgets to maintain for corporations. Young adults may be tempted to spend money on frivolous items as they face large college tuition bills, rent and other necessary expenditures. By following a few great tips, marketing students can take control of their financial future and learn how to live more frugally.
Make a Budget
The basic principle of good financial management is to ensure your expenses aren’t exceeding your income. There are several ways to make a budget. You can create a line-item document on which you outline your expenses and your income every month. Be sure to include all your bills, rent, tuition, and maybe even a little money for entertainment. Once you can actually see how your money adds up, you may be more inclined to make good financial decisions. Another newer form of money management are prepaid debit cards which work like credit cards except there’s little risk and they are reloadable. Spendsmartcard.com has recently been on the forefront of this initiative helping marketing students and teens learn the fundamentals of financial responsibility.
Self-Control Is Key
Parents can help their teenagers learn self-control by helping them budget their money. If you give your child an allowance, consider doing so on prepaid cards for students or credit cards with low monthly limits. You can review your child’s expenditures and talk to them about unnecessary purchases versus saving money. Students with credit cards should keep track of all their purchases to ensure they can pay the balance in full when the bill comes.
Stretch Every Penny
There are always areas in which marketing students can trim their spending. Some great ways for students to save money include finding used textbooks and living with other people to split rent and utility costs. Paying bills on time can help avoid late fees, and walking or using public transportation can save on gas money. Lastly, look to eliminate any unnecessary expenses, like pricey cable packages or phone plans.
Debt can follow you like a nasty smell. Remember that credit cards are not free money; it is a loan you have to pay back. Pay off your entire balance every month to avoid late fees or high interest rates. If you do have debt, pay it off as quickly as possible. If you cannot pay your credit card bill in full, pay at least 10 percent of the balance instead of making the minimum payment. Avoid charging additional purchases until you have paid off the balance. Instead of a credit card, consider using prepaid cards for students, which can limit how much you add to the card each month.
Start Saving Now
It is never too early to start a savings account. In fact, it is a good idea to put a line in your “expense” budget for your savings account, so you are, in essence, paying yourself. Even tucking away just a little bit of money can end up being a life-saver down the road should there be an emergency. If you have the good fortune of never having to use it, you will have created a nice nest egg for vacations or a deposit on a home. Putting money in a savings account with a bank or even researching investment options may be a good idea.
Creating responsible habits as a marketing student is a good way to ensure those habits carry into adulthood. Learning how to make and stick to a budget are the biggest factors in managing money well. Pay off any debt and save money when you can, and you will be securing a good financial future.