Education

How to Financially Prepare Yourself so You Won’t be Living on Instant Noodles During College

student's guide to money

They say that information is the most valued commodity in the world. Having access to information can sharpen a person’s skills and, ultimately, increase their value. The most popular medium of passing information is education. However, information gained through earning a Bachelor’s degree is no easy financial task to shoulder. With the rising costs of education, it pays to be prepared. By developing financial tactics early on during high school, you are increasing your chances of being forgiven from debt.

How to Deal with College Tuition

The annual cost of attending college for a year can range from $12,000 to $30,000 depending on which college you will be enrolling to. If you were a straight A student from Junior to Senior high school, you are increasing your chances in obtaining scholarships and financial aid granted by the government to hard-working students.Otherwise, your financial management skills better be up to par. Unless, of course, you plan on succumbing to debt.For the rest, there are three kinds of loans in the United States which you can apply for:

Federally Guaranteed Loans – These loans are decided and planned by banks and lenders with an imposed fixed rate by the government.

Federal Direct Loans – These loans come directly from the government. One has to get in touch with a government agency to apply for this kind of loan.

Private Loans – As the name implies, private loans are given by private companies and banks.

One thing to be wary about with loans is the interest rate applicable to the loan. If you are attending college as a part-time working student, financially planning for your stability can bring you a long way. Research on loan rates so you can pay these loans come graduation time.

The interest rates can either be a cushion or a burden. Stafford loans, for example, are great student loans. Although it is expensive to pay back, it offers a flexible schedule for deferred payments. It literally says; “Take your time”.

How to earn extra money before college

Preparing for your pocket money in college assures you that you will be able to afford necessities and occasional leisure. Before embarking for college, you could be saving up for your pocket money with these tactics:

Summer Jobs – These short careers can give you a taste of reality. A summer job can hone your skills and earn you much needed money. Take your time to build a network and establish connections at work, so by the time you are heading for college, you can have connections to rely on.

Garage Sales – Surely, college is a milestone in one’s life. It symbolizes the coming of age, and as you grow out of your youthful tastes, you can opt to sell stuff you don’t need. Make good money out of garage or online sales and bargains on sites like eBay. Earning a college degree can make a huge difference in your future financial stability. Sacrificing your material possessions can aid you in your journey.

College living necessities

For most people, attending college leads to moving out from home. Being away from your security blanket and comfort zone exposes you to scarcity. Scarcity is life’s enlightening factor. Scarcity teaches you to become more responsible with your money and purchases.

By knowing your necessities, you can save more money to pay off your student loan. Here are a few necessities on which you should consider your monthly budget.

Dorm rent – The question is where you will have to reside during your stay in college. You will have to book a dorm reservation in advance, usually in months. Dormitories can be expensive, especially those within the campus. To solve this financial burden, you may opt to look for apartments near the campus. List down their terms and rates to find out what best suits your capabilities.

Food – For food allowance, it is always cheaper to shop for fresh foods at farmer’s markets. If you know how to prepare and cook your own food, you’re saving yourself from the more expensive restaurant and fast food price tags.

Text books – It always pays off to ask higher batch students to buy their used textbooks. You can bargain for the price and end up with more savings than having to buy a brand new one. Content is the most important in textbooks. Don’t mind the scribbles and doodles of its past owners and focus on the lessons.

Knowing how to commute – Commuting will always be cheaper than having to drive your own car. With soaring gasoline prices plus car maintenance expenses, you will be better off financially in knowing your commuting routes to get you from one point to another.


About Author: Johann is a Marketing Consultant for Debtconsolidation.com.au, a debt consolidation and agreement company. They provide assistance and advice for bad credit loans and bankruptcy issues for people and their finances.

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