Question: I am in college and I come from a low-come house hold.

Question: I am in college and I come from a low-come house hold. I am paying for colleges through loans and scholarship's. Since my family is Low in come and I have no idea how to budget money or save money due to my family just not having a lot and being pretty bad at budgeting all together.

My mom is giving me money here and there. I been trying to find a part job/seasonal for a month but no luck. I just do not want to have no money when I need it because I have been there and Its pretty scary when am trap somewhere and cant get out of it but thanks am still trying to learn how to be a functional adult.

Answer:

Financial Tips for College Students from Low-Income Households

Hello! It's commendable that you're taking steps to manage your finances and become financially independent. Navigating college finances can be challenging, especially without prior experience. Here's a guide to help you budget, save money, and build financial confidence.

1. Create a Simple Budget

Why Budgeting Matters:

Control Over Finances: Helps you understand where your money is going.
Avoid Debt: Prevents overspending.
Achieve Goals: Enables you to save for emergencies and future needs.

Steps to Build a Budget:

List All Income:
- Money from your mom.
- Scholarships or grants that provide stipends.
- Any part-time work or side gigs.
List All Expenses:
- Fixed Expenses: Tuition (if not fully covered), rent, utilities, phone bill, insurance.
- Variable Expenses: Groceries, transportation, personal items, entertainment.
Track Spending:
- Use a notebook, spreadsheet, or budgeting app.
- Record every expense to identify spending patterns.
Adjust as Needed:
- Prioritize needs over wants.
- Cut unnecessary expenses.

Budgeting Tools:

Apps: Mint, You Need a Budget (YNAB), PocketGuard.
Templates: Free budgeting templates in Excel or Google Sheets.

2. Reduce Your Expenses

Housing:

On-Campus vs. Off-Campus:
- Compare costs; sometimes dorms are cheaper when considering utilities and transportation.
Roommates:
- Sharing accommodation can significantly lower rent.

Food:

Meal Plans:
- Opt for a campus meal plan if it's cost-effective.
Cooking:
- Prepare meals at home.
- Plan meals to avoid impulse buying.

Textbooks:

Buy Used or Rent:
- Check online marketplaces like Amazon, Chegg, or your campus bookstore.
Digital Copies:
- E-books are often cheaper.
Library Resources:
- Utilize the campus library for required readings.

Transportation:

Public Transit:
- Use student discounts for buses or trains.
Walking/Biking:
- Healthy and saves money.
Carpooling:
- Share rides with classmates.

Entertainment:

Campus Events:
- Attend free or low-cost events hosted by your college.
Student Discounts:
- Always ask for student rates at movies, museums, and other venues.

3. Increase Your Income

Part-Time Jobs:

On-Campus Employment:
- Positions in the library, cafeteria, or administrative offices.
- Flexible hours that accommodate your class schedule.
Work-Study Programs:
- If eligible, federal work-study provides part-time jobs for students with financial need.

Off-Campus Jobs:

Local Businesses:
- Restaurants, retail stores, tutoring centers.
Freelancing:
- Offer skills like writing, graphic design, or tutoring online.

Gig Economy:

Task-Based Apps:
- Apps like TaskRabbit or Fiverr for small jobs.
Surveys and Microtasks:
- Websites like Swagbucks or Amazon Mechanical Turk (though earnings are modest).

4. Apply for Scholarships and Grants

Why Continue Applying:

Reduce Debt: More scholarships mean less reliance on loans.
Unclaimed Funds: Many scholarships go unawarded due to a lack of applicants.

Where to Find Them:

College Financial Aid Office:
- They have listings of available scholarships.
Online Scholarship Databases:
- Fastweb, Scholarships.com, Cappex.
Local Organizations:
- Community centers, businesses, and non-profits often offer scholarships.

Application Tips:

Start Early: Deadlines can sneak up quickly.
Tailor Each Application: Customize essays to the scholarship's goals.
Stay Organized: Keep track of requirements and deadlines.

5. Manage Your Student Loans Wisely

Understand Your Loans:

Know the Terms: Interest rates, repayment options, and grace periods.
Subsidized vs. Unsubsidized: Subsidized loans don't accrue interest while you're in school.

Minimize Borrowing:

Only Borrow What You Need: Accept the minimum amount necessary.

Stay Informed:

Regular Check-Ins: Review your loan balance each semester.

6. Build Financial Literacy

Educate Yourself:

Books:
- “The Total Money Makeover” by Dave Ramsey.
- “I Will Teach You to Be Rich” by Ramit Sethi.
Online Resources:
- Khan Academy's personal finance section.
- Blogs like NerdWallet or The College Investor.

Workshops and Seminars:

Campus Events:
- Attend any financial literacy workshops offered.

7. Utilize Campus Resources

Financial Aid Office:

Advising: They can help with budgeting and financial planning.
Emergency Funds: Some schools offer emergency financial assistance.

Career Services:

Job Placement: Help finding part-time work.
Resume Workshops: Improve your chances of employment.

Counseling Services:

Stress Management: Support for anxiety related to finances or academics.

8. Open a Student Bank Account

Benefits:

No Fees: Many banks offer accounts with no monthly fees for students.
Budgeting Tools: Access to online banking and financial planning tools.

Credit Union Option:

Local Credit Unions: Often provide better rates and personalized service.

9. Plan for Emergencies

Start an Emergency Fund:

Set Small Goals: Aim to save even a few hundred dollars.
Automate Savings: Set up automatic transfers when possible.

10. Network and Seek Mentorship

Find Supportive Communities:

Student Organizations: Join clubs related to your interests or major.
Mentorship Programs: Connect with upperclassmen or alumni who can offer guidance.

11. Practice Mindful Spending

Needs vs. Wants:

Prioritize Essentials: Focus on what you need to survive and succeed academically.
Delay Gratification: Wait 24 hours before making non-essential purchases.

12. Consider Affordable Housing Options

Housing Assistance:

Resident Assistant (RA) Positions: Often provide free or discounted housing.
Cooperative Housing: Shared responsibilities can lower costs.

13. Stay Positive and Persistent

Mindset:

Resilience: Financial independence is a learning process.
Celebrate Milestones: Acknowledge your progress, no matter how small.

Final Thoughts

Managing finances is a journey, and it's okay to start small. Every step you take toward understanding and controlling your money counts. Don't hesitate to reach out for help—many people and resources are available to support you.

Remember: You're not alone, and seeking advice is a strong first step. Keep educating yourself, stay proactive, and you'll build the financial skills that will serve you throughout your life.

Best of luck on your journey!