5 Budgeting Pitfalls College Students Need To Be Aware OfBy Chris Brandt, UniversityHerald Reporter
Those who are working have already got a hard time budgeting their money. How much more if you are a college student with a limited budget? Here are 5 expenses you need to avoid that will surely ruin your budget.
Being more generous than your budget can afford
Students love going out and if it's one of your friends' birthday, you will buy a gift along with the celebration. Although there's nothing wrong about celebration and gift-giving, it is wrong when you are spending more than you can afford. On the other hand, it does not mean that you don't give a gift but rather, stick to what you can afford. Another way of solving this is to personalize your gift. Now, if it's your birthday, just go Dutch and tell your friends that you have a limited budget. If they are your real friends, they will understand.
Paying your bills late or forgetting to return on time that DVD you rented can hurt you more than you realize. The interest rate you pay every month might be small but becomes big as it accumulates overtime. In order to avoid late fees, sign up for automatic bill payment or a budget app that reminds you about your financial obligations and tasks.
You have FOMO
How does the "fear of missing out" or FOMO affect your budget as a student? When you begin to desire what friends have and buy it even if it's way beyond your budget, then you are setting yourself up for debt or worse, financial failure. Never ever compare what you have with other unless you want to be miserable.
Using your phone too much
Mobile phone charges are increasing the way tuition fees are. Aside from your monthly phone bill, there are also hidden charges you may not aware of when you signed that contract. Before this happens, compare different plans from different carriers before committing to a contract.
Monthly subscriptions you rarely use
If you don't really need that magazine, video streaming service, or gym membership, cancel it. This is not a wise way of using your money. Instead of paying for a video streaming subscription, there are websites where you can watch free movies. Instead of going to the gym, jog around the campus. Find alternatives instead of wasting money.