By Jacob Lotkowski
Compared to the college price previous to 2008, the financial landscape looks drastically different for recent graduates.
As the college going rate in this country increases–the price is increasing with it. Although college is becoming more expensive every year, students are still expected to absorb it’s price.
The SLA Perspective
Junior Jamie Murphy worked over the summer at Almaz Cafe. During this time she put away all the money she made into the bank.
“My savings are going towards car insurance while in college,” says Murphy.
Junior Delena Bui has been working at a nail salon for the past few months.
“I receive my checks and put the money into my checking account, and I’m saving the money for college or as an emergency fund,” says Bui.
What You Can Do
Debt after college is almost inevitable, but students can better manage their personal finances to minimize their overall debt when they graduate.
Monetary loss in college falls into lifestyle choices and bad spending habits. A basic understanding of how money works can help you make smarter decisions with your money.
Formal money management can enable you to be more accountable for your money by tracking spending and setting savings goals.
Making a checking account before you go to college will save a lot of hassle for the first few months. Your parents can transfer money onto your card, and when you get a job you can put the money you earn onto it.
Checking accounts are for money you plan on depositing and withdrawing often. You choose this account because it is free of many penalties that saving accounts will give you.
On the contrary, checking accounts will give you almost no interest. You only put your money in this type of account so it is easier to manage.
You can use a website like Mint.com. Mint is a free online service provided by Intuit, and is a secure way to track spending across all of your accounts.
The core services of Mint are tracking are:
Credit card transactions
In addition to not being in the dark about where your money is, you can also set budgets and and get reminders to pay bills.
Combining the tips above, you can be accountable for your own finances and be better prepared to fight imminent debt through college.