As college students begin to enter the workforce, learning beneficial spending habits can pay immediate and future gains. Proper money management and financial choices starting early on have been linked to advantages in the future.
“Practicing good money management habits now will follow students for the rest of their lives. When a student effectively manages even a small amount of money it is a great start to developing good financial habits for future income,” Angela Weaver, Lewis and Clark Financial Aid Director, said.
Students may run into money constraints during their college years, further encouraging wise money management. Weaver recommends that students open a savings account at a bank of their choosing, to help ensure some security for emergencies and future needs.
“Learn about the banking services that your bank offers and use them to the fullest. As an example there are typically several types of checking accounts (as well as savings accounts) to choose from, so you’ll want to talk with your banker to find and open the one that best fits your needs”, Kara Plunkett, a Personal Banker at Liberty Bank on Godfrey Road, said.
Weaver explains that students opening their own accounts can allow for better safety of their money, while also being able to electronically see their transaction history and therefore can track their spending and available funds.
But along with dedicated saving to a student’s bank account, Weaver notes that students should reward themselves.
“I often encourage students to pursue ‘delayed gratification’. What is meant by ‘delayed gratification’ is not spending all of your earnings on material things. Paying yourself first is taking a portion of your earnings each pay period and depositing it in your personal savings (for calculated future wants)” Weaver said.
Student education regarding financial planning, terminology, and management is a wise choice for young people to learn about.
“The truth is everything a person does with his or her finances from day one is tracked and can positively or negatively affect your financial future. An early start to good money management will save you thousands of dollars during your lifetime”, Plunkett said.
Most banks offer different types of benefits and breaks for their student members. Speaking with a bank representative is the best route to finding out individual bank’s offered perks for college students.
Plunkett encourages students interested in opening an account or with financial questions to visit with a bank of their choice to examine the options and benefits that are available.
L&C is currently working on creating additional informational resources regarding money management for students. Weaver working to develop a Financial Literacy webpage for the school’s website.
In addition, financial literacy workshops are held every semester to aid students in financial matters. The spring workshop date is to be determined, further information will be released early 2015.
For immediate tips and direction for money management and financial decisions, smartaboutmoney.org offers a wide range of helpful details for college students and their money habits.