Common College Life: Finances

College comes with a big cost, and with tuition prices rising everywhere, many students are stressed about making ends meet. Add onto that eating out, meal plans, groceries, gas, textbooks, sports passes, coffee, entertainment...the list goes on and on, and as a student entering college it's very wise to prepare ahead of time on how to balance your finances. If you are already a student, it's a good idea to check and see if there is room for improvement in how you manage your money. Whether your parents are helping you out or you're working your way through college, the secret to making all it work it out is in planning, following through with the plan, and approaching money from a Christ-centered point of view. Christ has called us to be stewards of the gifts and time given to us in this life, and money is very much included in that. As a student about to enter my sophomore year, I'm still learning and improving on how to better manage money, but during my first year I learned a lot on the subject and picked up some tips that I'd like to pass on to you.

Before College:

• Talk to your parents. They may have planned for your college and intend to help you out, either all the way or up until a certain point. I've found they also give great advice! Who knew ;)
• If need be, look into student loans. Some good advice I once heard is that there is 'good debt' and 'bad debt'. You want to aim for none at all, but since none is so hard to come by today, focus on having as little as possible while knowing that 'good debt' includes college, house investments, and other bigger loans that are worth it.
• APPLY FOR SCHOLARSHIPS! There are SO many out there and you just never know what you could be awarded or what you qualify for.
• Fill out your FASFA on time and go over every detail with your parents
• If money is tight, look into taking some courses at a community college; it's way cheaper.
• Think about getting a job while in college.

During College:

• Make a budget-and stick to it!
• Go to money management classes; I know Texas A&M provides a few each semester.
• Keep track of everything you spend in a checkbook so that you know where each dollar goes.
• If you make a checking/savings account for the first time, ask your bank about student accounts; they often come with certain privileges to meet your needs as a college kid.
• Pray that the Lord helps you in your finances by providing wisdom and self-control.

During High School, my economics teacher introduced my class to Dave Ramsey, a Christian speaker who teaches on money management from a faith-based perspective, and ever since then I've read some of his books and also some by his daughter, both of which have helped me immensely. You can find his website here.

There are six steps that Dave Ramsey outlines for how to beat debt and become financially stable:

1) $1000 to start an emergency fund
2) Pay off all debt after making a list of all current payments to make
3) 3-6 months in savings (more in the emergency fund!)
4) Invest 15% of household income into Roth IRAs and pre-tax retirement
5) Begin college funding for children
6) Pay off home
7) Build wealth and give!

Although these are steps that are taken over time and some that are meant to be taken after college, it's never too early to get started. Any college student can put aside money for savings each month to start an emergency fund!

Dave's daughter, Rachel, has started her own career on giving financial advice and has published the book and DVD series, 'The Graduate's Survival Guide'. I actually own this and have read it cover to cover and in my experience it has been incredibly helpful in making the transition from high school to college, as it covers everything from budgeting to credit cards. You can access this resource online here.