Never Go Broke: A 5-Step Financial Planning Guide for Students Entering College

Managing money in college doesn't need to be complicated. Here’s a straightforward guide to keeping your finances in check with just a few basic principles.

1. Understand Your Cash Flow

At its simplest, saving money means making sure you spend less than you earn. Break it down:

• Income: This is what you make from jobs, allowances, or scholarships.

• Expenses: This includes everything you spend money on, from tuition to snacks.

2. Boost Your Income Over Cutting Costs

While you can cut expenses only so much, increasing your income has no limit. Look for part-time jobs, internships, or freelance opportunities. More money coming in means more flexibility in your budget.

3. Avoid Unnecessary Spending

Before buying, ask yourself: Do I need this? Can I afford this without stretching my budget? If it’s not essential, skip it. This habit alone can save you a lot of money.

4. Automate Your Savings

Set up your bank account to automatically transfer a portion of your income into a savings account every month. This way, you save without even having to think about it, and it prevents the temptation to spend all you earn.

5. Keep Learning About Money

The more you know about managing money, the better you’ll handle it. Spend some time learning basic financial skills—budgeting, saving, investing. There are plenty of free resources online and likely workshops at your college.

Key Takeaway

Keep it simple: Earn more than you spend, save automatically, and keep learning. Stick to these principles, and you won't just get through college financially; you'll set yourself up for a solid financial future.