As high schools across the country prepare for and hold their graduation ceremonies, the graduating students are now looking forward to the college years. These outgoing seniors from high school and incoming freshmen in college will be put in an independent situation for the first time in their lives.
But while such independence is often exhilarating for the young adults, mature adults understand that with independence comes responsibility, namely financial responsibility. Financial responsibility entails a host of different items, but mostly it can be summated into being wise with expenditures, careful with savings, and handling money with care.
Start With Managing Your Money
The first thing that a newly independent freshman college student can do to become financially responsible and to begin to learn how to manage their money well is to understand the aid that online money management tools can give. Most banking institutions can provide a form of online banking and money management tools so speaking with one’s bank may be the best place to start learning the online tools available.
Online money management tools are effective for many different reasons. One of their primary functions is to assist in the creation and adherence to a budget.
Budgeting has long since been the foundation of proper money management and the backbone to financial success. Without a budget, college freshman especially are vulnerable to over spending and wasted resources.
Creating a budget for the first year of school is a relatively simple task. A college freshman can begin by examining all of the necessary expenses that they will be facing for their first semester at school.
Typically these expenses will include such things as rent, meal plans, textbooks, and transportation costs. After list all of the known expenses that will be incurred over the course of the semester, a college freshman can total that cost compared to what they will be earning every month from their jobs.
Once the necessary costs of food and shelter are accounted for, the remaining money from income can be distributed among other items in the budget such as for savings and entertainment. Beyond helping a college freshman to create a stick to their budget, online money management tools serve to help the student in all forms of financial responsibility.
Set Up Your Online Budgeting Tools The Right Way
With the online tools available, a student can set alarms for bill pay or set up an automatic bill pay service for the regular costs of things such as rent or utilities. In addition, an online money management tool offered by a bank or independent third party will help to assist the student see their total money map, or where their money is being spent, and thus allow them to make changes to their expenditures where necessary.
Along with the aid of an online money management tool, an incoming freshman student can help themselves to regulate their spending and learn quality money habits by using prepaid debit cards or debit cards from their traditional checking or savings accounts. Prepaid debit cards are especially handy for a freshman student because of the fact that prepaid cards eliminate the likelihood of incurring credit card debt.
Consider Using a Prepaid Credit Card
While still maintaining the effectiveness, usefulness, and convenience of a credit card, a prepaid debit card does not allow for an inexperienced young freshman to make big time financial mistakes while using their card. This is made possible by the fact that a prepaid card is a card that has a set amount of prepaid money allotted to the card.
In this way, a prepaid card only allows the card holder, in this case a financially novice freshman, to spend the amount that is on the card and therefore prohibits incurring debt. Prepaid debit cards teach a college freshman how to responsibly handle money by not giving them the temptation of false or fake money that credit cards allude to.
Instead, with a prepaid debit card, a college freshman will be able to regulate their own spending by understanding that there is a set limit to the financial backing on the card. Prepaid debt cards do usually come with a high startup fee initially, however, so those who are considering using one for their freshmen year should shop around for the best deal on a prepaid debit card.
Or, if they choose, an incoming college freshman may wish to use their debit card that their bank gives to them upon the setup of a checking account. Often checking accounts at banks can be set up for little or no cost with a specified minimum to begin the account.
By using money management tools online and using prepaid debit cards or debit cards from their bank a college freshman will be able to learn sound money management techniques. And by learning how to manage their money early during their first year of independence, freshmen will be able to set good financial habits that will aid them throughout their lives.