Coffee break, bagel, ATM stop, must-have shirt for tonight's party - it's no wonder that by midday many students find the change in their pockets dwindling. Money management may seem like a far-off problem, but experts say becoming proactive now will only help avoid immediate and future financial problems.
"You have a lot more power over your financial situation than you think," said Libby Morsheimer, an advisor with Student Advising Services. "Small savings and investments become large savings and investments over time. College students still have time."
There are three essential money-saving rules for shopping, according to Morsheimer. Purchasing generic products, especially medications (which must be equally effective as name brands), is an excellent way to save.
Students should also consider heading to the grocery store with a list, Morsheimer said. Bringing only enough money to purchase what's on that list and leaving credit cards and debit cards behind means avoiding impulse spending and unnecessary ATM fees.
"Try to eliminate or at least reduce habitual spending habits, or find an alternative," Morsheimer said.
Cigarette smoking, excessive bar spending, eating out, and even twice-daily breaks at expensive coffee shops are expenses that can add up fast. Morsheimer said that breaking one bad habit and directing the money to a bank account could lead to big savings. Dropping one expensive weekly spending habit and directing the funds to an account can add up to over $1,000 at year's end, Morsheimer said.
Morsheimer admits that while some costs are absolutely essential, it isn't necessary for students to overspend just because their wallets are already open.
"Whether you're traveling or eating, don't forget to ask for a student discount. A lot of businesses offer reduced rates for students but don't advertise it," Morsheimer said.
According to Morsheimer, attending a safety driver course is an excellent way to reduce car insurance, an expense many students cannot get around.
Students should realize that there are good reasons to save now: future education, emergencies, and even retirement are not as far off as students imagine, Morsheimer said.
"The notion that you have to be a brain surgeon to be wealthy is a really flawed idea," Morsheimer said. "Anyone with a paycheck can save money for their future."
