The Amateur Financier

(It’s always a pleasure to share a new blogger’s writing.  Here you have a teacher slasher blogger sharing some information about preparing for a good financial future.  It increasingly takes a lot of money to get through college, but it’s not impossible to get through four years of college with no debt.  If you’d like some more suggestions on just how to do that, please read on:)

7 ways to build a solid foundation for your financial future

Borrow for college or university via a student loan is a must if you have no higher education savings. Unfortunately, it can leave some students with a decade of repayment ahead once they leave campus. With the soaring price of tuition, student housing and textbooks (even if you rent textbooks and cut costs by half), staying debt free in college is difficult. However, graduating without debt (or without huge debt) is possible for those students set a budget, stick to their financial priorities, and most of all avoid the temptations that can present themselves during your first year away from home. Plus, if you learn to create a budget and stick to it in college—you’ll be learning the right skills for a solid financial future.

It’s possible to stay debt free in college…just follow these smart steps:

1. Choose your school wisely

Any old college won’t do. Don’t choose one just because your friends are going or just to live in a major city center. Instead, do your research on the cost of tuition, student accommodations and living expenses in the area to see if you can afford it. The general rule is that private colleges and universities have more expensive tuition than state colleges, and if you decide to go out of state for college, get ready to pay for the extra living expenses compared to staying in your home state and continuing to live at home.

2. Seek out scholarships

Look to grant and scholarship opportunities for first year college and university students, such as:

• Pell Grants
• Minority foundations, e.g., National Association for the Advancement of Colored People
• Government grant foundations, e.g., Veterans of Foreign Wars

If you can’t find a grant or scholarship that applies to you, ask your institution to send you a listing of scholarships you can apply for.

3. Create a budget

Creating a financial budget before you leave for school will help you stick to it and manage it properly. Just create a simple Excel spreadsheet to track your monthly bills. Enter the amounts you spend to keep track of any incoming money (from a part time job) and outgoing money (your room and board, and bills). As time progresses you can refine your budget by cutting small amounts in certain areas—this will give you a bit of savings for entertainment and to pay back debt.

4. Get a part time job

Yes, having a job can take away from study time, but it also teaches students the value of hard work and gives you extra money for entertainment and to contribute to bills and other expenses. Plus, if you get a part-time job that relates to your field of study, it will give you an edge in your career upon graduation. Look into paid work-study opportunities where employers understand that school is the number one priority.

5. Start an emergency fund

In addition to your living expenses or basic necessities, you should put away a bit each month for emergencies. For example, emergencies are not entertainment or clothing, but instances like getting sick and needing to cover medical costs or should your computer crash and burn. An emergency fund will give you peace of mind knowing you have funds available in case of a medical injury or another emergency. Keep these funds in a tax free savings account so they aren’t mixed with your regular bank account, but still easily accessibly if needed.

6. Avoid the credit card trap

The biggest financial temptation for students is the credit card. However, keep in mind that avoiding one will help you stay debt free by forcing you to spend what you have on hand. Unpaid credit card debt carries high interest fees and late payment penalties—and it can damage your credit rating for life.

7. Take advantage of student discounts

You have a student card—so use it to cash in on student discounts on textbooks, public transit, grocery store purchases and even restaurants (on special occasions). Students get a lot of perks—such as student discounts and free events on campus—so don’t be afraid to go to the free movie or concert on campus rather than the paid events off campus.

Author Information

Brenda Ortega works as both a substitute teacher, freelance writer and sometimes finds time to write her own blog The Educational Bar. She loves delving into the research side of writing, which mostly focuses on educational issues. She has written for a variety of material, giving tips for students on cutting university costs; to parents on saving money for your child’s education; and even hopes to help educate others with her learning enhancement-based topics.