Learning About Financial Literacy While in College
You may be hearing a lot about financial wellness right now, and it's more than just a buzzword. There's a lot that goes into building a solid and secure financial future. Learn all you may need to know, and those things you didn't know you needed, here.
By Dr. Gwendolyn Maria Parrish — January 25, 2023
Learning About Financial Literacy While in College
Starting college is exciting but requires appropriate planning to ensure you are academically and financially ready for what is to come. Before enrolling, it is important to know and understand your financial responsibilities, and how they will impact your personal life, both during and after graduation, so there are no surprises. Financial health is a term used to describe having your finances in order, meaning you are not overspending. Spending more money than you have available to you eventually causes a collapse in your finances which can lead to serious complications. Financial literacy, however, is your understanding of the difference between what items are needed vs. wanted. Knowing the difference will help your long-term financial well- being. One of the most effective ways to manage your money during your college journey is to create a budget so you know just how much you should need for each of your living expenses. Once you have mapped out your budget, staying on track will become much easier.
Ask the Right Questions
Managing your finances can be challenging, especially when you are just starting on your own, but you have a support team at your institution who are there when you need assistance. Always be bold and ask questions about how to get help covering your tuition and expenses. This way, you know everything you need without breaking your budget. Understanding specifically how much money you have allotted to monthly costs can help you afford the things you will need as a student, whether you live on campus or not. You should never be ashamed if you do not have all the answers about money management; many people have this issue even if they are not enrolled in college. You will learn to manage your money over time by practicing a few financial health strategies. Your first step in financial planning is to fill out your FAFSA so that you can receive the aid you need. Learn more about getting financial help in this article. You will need a health plan for both short-term and long-term financial success.
How to Stay Financially Motivated
Staying motivated to manage your money effectively may take time and effort. It is suggested by many financial advisors that you set a little money aside each month for things not included in your expense list that you want to buy. You can set aside $10 or $20 each month and allocate it for something you have wanted, which will keep you from overextending your budget and having financial issues later. If you do not have a wish list, continue adding it to your extra savings, and you can continue to build on it until you graduate. It may not seem like much money, but it will quickly become significant savings.
Sticking To Your Budget
While it won't be easy to stay within your budget always, you will need to do it. For example, if you are an impulsive shopper, take a few minutes before making a purchase that was not planned or on your list of expenses. Give yourself time to reflect and note whether you want to spend that amount on this item. Chances are, you will decide that you can save your dollars for another day when it is better spent. Be sure to speak with your financial team at your institution, your parents, and anyone else with a demonstrated financial well-being history. You will eventually master the art of financial health and feel confident about your spending habits. Read this article to learn more about completing your application for student aid (FAFSA) and becoming financially independent. Once your application is completed and approved, you will be notified about your expected contribution (how much you need to plan for tuition expenses).
Dr. Gwendolyn Maria Parrish
Dr. Gwendolyn M. Parrish is a graduate of MSU, where she received a BA in Elementary Education and an MS in Educational Leadership. Maria has more than ten years of experience in the classroom and two years as a high school vice-principal. She is a graduate of Capella University, where she completed a Ph.D. program in Curriculum and Instruction and Administration. Maria has also been a writing consultant for Capella for the past three years and enjoy working with learners of all ages.
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