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Four years of college have a way of flying by, with graduates often wondering where the time went. Dissipating faster than time, however, is money. In fact, many collegians see their bank accounts dwindle to mere cents more than once during their academic careers. Unless students are independently wealthy, most will encounter the reality that money is finite. If going without meals or wearing dirty laundry is not enough to drive this message home, inability to purchases required textbooks or make rent will undoubtedly make the point. The good news is that cultivating five financial virtues early on will spare a young scholar such shortages, allowing for a comfortable—if not extravagant—existence while going to college.
Budgeting and Bill-Paying
Taking stock of assets and liabilities is foundational to successful financial management. Students are well advised to first write down their estimated costs, and then determine if their current savings and income are sufficient to meet them. Prompt payment of bills is essential to building good credit and avoiding penalties. To this end, online bill pay is a service that produces these benefits. A student should save any receipts and check them against budget estimates so those figures can be adjusted for greater precision.
Working
Work may not be an immediate necessity but its contribution to financial stability is substantial nonetheless. Granted, an engineering student who studies for nine hours daily just to make Cs might consider a job a poison pill in terms of academic success. For most, however, working 10 to 15 hours a week affords them the ability to grab a meal out or see a movie, to visit friends on other campuses or take a weekend trip home. Funds that would otherwise come from savings or parents can be generated by part-time employment. Furthermore, when payday rolls around, students can learn the value of a dollar by comparing how much they work with what they can buy.
Saving
Much is said and written regarding saving for college; much less so regarding saving while in college. It is equally important, however, because there are no guarantees in life—including a well-paying job at graduation. Acknowledging that income will be limited during these years dominated by studying, papers and exams, collegians do well nevertheless to regularly put a few dollars away with every paycheck, allowance installment and gift. Not only does this practice build a needed reserve for the future, it also imposes a discipline on spending that can extend for a lifetime.
Restraint
Key to adhering to a budget and building up savings is the power of no, i.e. self-denial. Another late-night pizza or case of beer may be tempting, but at what cost? What obligation will go unmet? How much will your savings account stagnate? What about emergencies? These questions are not asked to prohibit a student’s investment in entertainment, recreation or socializing. They serve only to moderate those investments as far as well-prioritized finances will allow.
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Thrift is an attitude more than a practice. In the case of college students, thrift is about sniffing out deals, using coupons and buying generic brands. Saving a few pennies here and there adds up to many dollars at month end.
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