Managing your money in college

With the new academic session just around the corner, students who have got admission to reputed universities and colleges away from their hometowns or cities, would be looking forward to move to a new city to pursue their higher studies.

Suddenly one finds that he or she is in a class with students from diverse backgrounds. While some students would be in a position to pay the fees and other admission charges for professional courses as a lumpsum amount, the parents of students from a middle-class background and those more hard-up for finances, would have to take educational loans, apart from dipping into their savings to meet their commitment. This write-up is primarily meant for students from the latter background.

So far free of any financial concerns, students moving to a new city would have to adjust themselves to a new environment. Far from the comforts of home, students, whether in a hostel or a shared apartment, would have to manage their daily chores themselves.

Not all children are introduced to the habit of `Piggy Bank' savings in their childhood, as a first step towards financial literacy. However, it will now be your responsibility to manage your expenses within the amount sent by your parents.

When the academic session starts rolling, expenses incurred on purchasing books, making project presentations, printouts and copies of study material, personal expenses and other academic essentials, would drain you financially. Here are a few tips to manage your finances in such a situation.

1) Estimating your monthly expenses and planning your spending will ensure that you have money when you need it.

2) In a new campus, you will find that your peers come from different socio-economic backgrounds. Friendship with students whose parents provide money on demand can make it difficult for students on a budget. Splurging occasionally is fine, but stand firm against the pressure to eat out frequently or to buy the latest gadgets and fashion.

3) Those who have taken educational loans should try to secure scholarships so as to cut down on the quantum of loan needed in subsequent years. This will lessen the burden of paying interest at a later date.

4)Paid internships are available. You can use these savings for unexpected needs such as laptop repairs.

5) If you are using a credit card, be prudent while spending and check your monthly statements. Do not burden your parents.

6) Students can take advantage of free or low-cost entertainment options on campus. In many universities, fitness facilities are covered by the fees. Also, make use of free broadband services available on campus to minimise your expenses.

7) Shop for personal care items online to make use of the discounts offered on these.

8) One can also consider student concessions or group trips that may keep travel costs down.

9) If in need, consider getting a part-time job to earn for your expenses. Many big academic institutions have jobs that require you to put in a few hours each week, which can be worked around your class schedule.

10) Always keep track of what you spend and check your bank balance online to make sure you don't spend more than you have. If you are running out of money often, check your spending pattern to identify what to cut back on.

This is just to help you control and manage on a limited budget. As a student, have fun, enjoy campus life, keep yourself fit, work hard and study well.

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