Managing money effectively is a lesson many people are not taught in school. Even students who take a money management class or get financial guidance from parents or advisors often discover that there is a learning curve when it comes to putting this valuable knowledge into practice. College is the first experience many people have with managing bills, rent and other expenses on their own. Since inexperience is often the culprit for bad financial decision making, poor money management affects college students from modest and affluent backgrounds alike. Whether a student’s income is from employment, parents or a student loan, financial responsibility entails delegating funds in a way that inevitably commands some degree of sacrifice and self control. Here we examine some common financial mistakes that college students can avoid to help establish financial habits that will benefit them for years to come:
*Living beyond their means. Attempting to live a lifestyle that exceeds affordability is a mistake that can get students engulfed in debt fast. To avoid this financial pitfall, carefully assess all related costs when making a major commitment, such as signing a lease on an apartment. This means determining if you can live comfortably after paying not only rent, but all monthly living expenses�"utility bills, phone charges, student loan payments, car payments and any other financial obligations you may have. Ensure that your income is sufficient to cover regular financial commitments with enough left to cover costs such as food, textbooks, gas and the like.
*Letting bills slide. Getting behind on payments and bills is a mistake many college students make. It is not uncommon for students to neglect financial obligations even when they have the money, or simply spend the money on something else. It is important to distinguish between living expenses and luxuries, and take care of living expenses first. Delaying or neglecting payment on a monthly bill will only result in the arrival of another, more daunting bill in just a few weeks. If paying a $150 utility bill now seems unappealing, owing $300 plus late fees in a month will be even worse.
*Spending every cent. Contributing regularly to an interest earning savings account is a good habit for anyone. Even if you can only spare twenty dollars per month, saving is saving. Whether you build up a sizeable nest egg before graduating college or you have to use the money for an emergency, saving money is one financial decision you will not regret.
We have all heard the adage of being a “poor college student." Though this expression may lead the optimist to assume that financial woes become suddenly non-existent after college, this could not be further from the truth. Most college graduates work in unglamorous entry level positions for a few years out of college, and making ends meet does not suddenly get easier. Developing good money management habits in college can set students on the track to a bright financial future.
In recent years, laptop computers have become much more popular than desktops, especially among students. It is estimated that well over 90% of college students that own a computer will buy a laptop instead of a desktop. The advantages of portability and the growing number of available wireless internet hubs make this an easy choice.
The downside of buying laptops is that they are generally much more expensive than desktop computers that have the same amount of power and memory.
Fortunately, this is one area where college students can easily save a lot of money. Many laptop computer manufacturers, such as Dell, HP, and Gateway, all have a wide selection of used laptop computers which are refurbished and resold at prices much lower than you would pay for a brand new notebook. Although they are ?used?, they have been refitted and re-inspected by the manufacturer and even given a warranty that usually covers the first 90 days after purchase.
At today's prices, it's hard to find a new laptop computer for less than $750, and even then you are buying the cheapest model with the smallest screen size and minimum amount of power. To get a bigger screen, more memory, and more processing speed, you can easily end up paying from $1,000 to $2,000 or more for a new laptop.
With a used laptop, you can get the same power and screen size of the pricier new laptops without paying the higher price. The lower-priced used laptops can range from $300 to $800, and these aren't weak little Celerons or Semprons. At this price range, you could be getting a Pentium M, Centrino, Core Duo, or Turion 64 with 512MB to 1GB of memory and at least a 14? screen. Used laptops in the $300 to $800 price range also typically have a hard drive with 30 to 120 gigabytes of space, plus a preloaded operating system, such as Windows XP or Vista. Brand new laptops with the same specifications would easily cost two or three times the price of a similarly-equipped refurbished model.
So, if you're looking for areas to save money as you head off to college, start by buying a refurbished used laptop instead of a brand new one. You'll be walking around campus with a very capable computer for your college studies, except you'll have a few hundred extra dollars left over for other expenses.
Both Edmund Rogers & Richard Thomason are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Edmund Rogers has sinced written about articles on various topics from Personal Finance, Credit Card Offers and College Education. About the Author: Edmund Rogers, a graduate student in English, is the editor for iStudentLoan.com, a and student loan consolidation provider which also sup. Edmund Rogers's top article generates over 9900 views. to your Favourites.
Richard Thomason has sinced written about articles on various topics from College Education. Richard Thomason is the webmaster of PC Bargain Hunter, an online shopping and comparison site about , refurbished computers, and other computer accessor. Richard Thomason's top article generates over 9900 views. to your Favourites.