Heidi Albert
www.school2life.com
Learn how to be a conscious spender; learn where and how to 'trade down'
As an example, a college student might be used to going to the high-priced coffee house every day for their syrup-laden latte or drink to keep the caffeine buzz. But going to a cheaper alternative to get that same drink can save money, both for the one-time purchase as well as if those purchases were made throughout the year.
One Starbucks vente frappucino costs $4.50. What if you get that drink four times a week?
Some of the other coffee houses/restaurants in town cost significantly less (on average, $2.73 for a medium, or tall latte $2.80)
Just in 1 year you can save $368 this is BEFORE compounding interest
If you compound...for 10 years, at 2% interest, compounding 1 time annually you get $4,558.68
Be mindful of how even inexpensive "impulse purchases" add up
College students don't think about the little things, such as lip balm, that extra snack between lunch or those few iTunes downloads. Those little things add up, especially when you have to pay for the bigger things you need.
Think about what else you want to achieve in life -- and BE REALISTIC about how much it will cost
This is one where students need to swallow a little reality and plan for the future. If they want something important, such as a car, new furniture or a new computer, then they need to think about planning ahead; the money won't be there if they continue to spend.
Use Debit cards
This is an ideal tool to keep "budgets" in mind. You can't spend what you don't have
Create a budget. The budget should include money that allows you to spend on "perks" and outside entertainment, but it cannot be the majority of your budget planning
Learn how to be a conscious spender; learn where and how to 'trade down'
As an example, a college student might be used to going to the high-priced coffee house every day for their syrup-laden latte or drink to keep the caffeine buzz. But going to a cheaper alternative to get that same drink can save money, both for the one-time purchase as well as if those purchases were made throughout the year.
One Starbucks vente frappucino costs $4.50. What if you get that drink four times a week?
Some of the other coffee houses/restaurants in town cost significantly less (on average, $2.73 for a medium, or tall latte $2.80)
Just in 1 year you can save $368 this is BEFORE compounding interest
If you compound...for 10 years, at 2% interest, compounding 1 time annually you get $4,558.68
Be mindful of how even inexpensive "impulse purchases" add up
College students don't think about the little things, such as lip balm, that extra snack between lunch or those few iTunes downloads. Those little things add up, especially when you have to pay for the bigger things you need.
Think about what else you want to achieve in life -- and BE REALISTIC about how much it will cost
This is one where students need to swallow a little reality and plan for the future. If they want something important, such as a car, new furniture or a new computer, then they need to think about planning ahead; the money won't be there if they continue to spend.
Use Debit cards
This is an ideal tool to keep "budgets" in mind. You can't spend what you don't have
Create a budget. The budget should include money that allows you to spend on "perks" and outside entertainment, but it cannot be the majority of your budget planning
