Acquiring financial knowledge from an early age is an important process for your life as a college student since being financially prepared will allow you to make informed decisions and avoid common mistakes, such as not having a defined budget, spending impulsively, not saving, and accumulating debts that can generate stress and limit your investment options.
That’s why learning how to manage your money will help you make smarter decisions, reduce stress, and build a stronger financial future. It will also allow you to achieve your goals, avoid financial problems, and develop healthier habits.
5 tips to improve your personal finances
Miguel Alejandro Peaa, professor at the Faculty of Economic, Administrative, and Accounting Sciences and Coordinator of the Accounting and Business Consulting of the Los Libertadores University Foundation, makes the following recommendations for young people to begin to appropriately manage their finances throughout their university career:
- Set clear goals: Defining short, medium, and long-term goals will give you clear direction and motivate you to be more disciplined in the way you manage your money.
- Create a realistic budget: Write down all your income (allowance, part-time work, scholarships, etc.) and your expenses such as rent, food, and transportation, among others. Remember to include small expenses, those daily expenses that at the end of the month can add up to a large amount of money.
- Save consistently: Experts recommend saving 10% of your fixed income at the end of the month. And don’t forget, consistency is key when it comes to saving.
- Control your spending: Before making a purchase, ask yourself if you really need it. Compare prices, look for discounts, and avoid impulsive spending.
- Reduce your debts: If you have debts, prioritize those with the highest interest and look for alternatives to pay them in the shortest time possible. Also, avoid acquiring new debts if it is not strictly necessary.
Adopting these habits will allow you to build a more stable future and have the opportunity to achieve all your financial goals, such as buying that book you like so much, investing in your academic future, or making that trip you have planned since the beginning of your semester come true.
Finally, remember that financial education is a path, and as you go along it, you will realize that perseverance and discipline are your best allies. If you need more support, do not hesitate to consult a financial advisor for guidance on how to have adequate control of your personal finances.
