Cash Course - Managing Your Money in College

Traditionally, college students are not known for their affluence. For most, cash flow is quite limited during those college years. Students can learn to manage the funds they do have, however, starting with a few simple steps(Bankrate.com Sept 11).

1. Track spending for two to four weeks to find out where the money goes. (Are those daily trips to Starbucks really necessary?) First write out a budget. List sources of income such as scholarships, loans, money from summer jobs, and cash supplied by parents. Then write down expenses such as tuition, books, groceries, transportation, and so on. Figure how much is available, and set a spending limit for each week.

2. Use credit cards sparingly. Avoid using plastic for small purchases such as sodas and snacks. If you're worried about maxing out a card, call the credit card issuer and request that the credit limit be lowered.

3. Plan ahead. If you know there's a big expense on the horizon, such as a car insurance payment, start putting money aside early. Also, get in touch with your roommate before the semester starts and decide how you'll be dividing up expenses. Don't be afraid to ask for help. If finances spin out of control, ask someone at your credit union for a referral to a credit counselor. The longer you put it off, the worse things can get.