Wouldn’t It Be “Dope” To Be Financially Literate While In College?

Save Money In College

I Think So.

 

So…lets get into some things that have probably already happened to you during your freshman semester. You may be one of the “flyest” people on campus but, being “fly” isn’t helping you succeed in college. That outfit you bought averaging over $800 is not necessary.  You do not need that $300 belt because it says “Gucci” on it, nor that $250 pair of Jordans because it is the new release. I know you want to look decent going to class, but who are you trying to impress? The dean? The professors? The future employer or is it that cute girl sitting in the corner? You are always in the mall or online shopping, yet you barely have any money left to buy your textbooks, gas for your car and you are constantly borrowing from your friends.

The Re-Evaluation

Its about time you start reevaluating yourself and your money. Do you have any idea what you could have done with the money spent on frivolities? You could have started a business, you could have shopped more responsibly and buy things that you actually need for class. College goes by fast and it’s time to start planning for your future. Think before you spend your money. Is this purchase a “must have” or is it a” want”?  One of the best ways to save money that will go a long way in college is by completely cutting out fast food and takeouts. Add up all of the money you spent on ordering takeouts  in just the last 7 days. Surprising isn’t it?

Save Money In College

Assets & Liabilities

Every time you spend money it falls into one of two categories. It is either an “Asset” something that benefits you or your future and “Liability” which is money spent that takes away from your future or offers anything that will benefit you. People that are financially literate have more assets than liabilities.

For example lets say you go out to eat at Chipotle with your friends 3 times a week. Yes, it’s a nice ritual that you have developed as a college student, but it is a triple homicide crime scene financially.  A burrito bean bowl does not add any benefits to your future. That money spent is gone with the value only lasting about 10 minutes after you finish eating it. You spend $25 a month on a math tutoring website. This is an asset, because it benefits your future of passing your math class, which is needed to graduate and further more the potential of never forgetting what you’ve learned from the tutor.

Common Examples of Assets & Liabilities In College

Assets

  • Calculators, pencil, pen, notebooks, 3 ring binders
  • Textbooks
  • Website programs free and non-free (Khanacademy etc)
  • Tutors
  • Any start-up business cost (for the entrepreneur student)
  • Bike
  • Phone
  • Iron

 

Liabilities

  • Car (unless you have to travel far to work or its unsafe otherwise)
  • Buying food, takeouts, fastfood, snacks (most college tuition package includes a meal plan)
  • Expensive clothes 
  • Parties (depnds on the type of party, networking parties are always good)
  • Events (depends on the event)