Skip to main content

Search

3 Effective Strategies To Prepare Your College Finances

Recent high school graduates face many challenges when planning to enter college. One of these challenges is determining how to manage their finances when applying for financial assistance. Creating and maintaining a budget can allow for the successful management of an individual's finances while in college. Budgeting can help reduce the stressors of academic life and enable them to achieve their financial goals. Budgets are specific to everyone. Here are some tips for recent graduates to prepare for college. 

College students sitting
College students discussing homework.

Borrow Smart

When borrowing money for financial aid, it's essential to understand the difference between federal and private loans. Federal loans have a lower fixed interest rate and have better repayment terms than private loans. These can include your Stafford, Perkins, and Direct Plus loans. Alternatively, private loans may have higher interest rates that are variable and are based on your credit history. These loans may not offer repayment assistance and can require a cosigner, like a parent. If loans are needed, only accept the minimum amount required.

Pay on the Loan While Enrolled

If you have additional funds available while in college, pay the interest as you are enrolled. Paying the interest will reduce your future monthly payments when you graduate or enter the repayment period. Understanding loan repayment options, when payments are due, and where to send your payments can prepare you to start reducing the balance on your loan. In addition, developing a budget while in college will allow you to pay, at the minimum, the interest on your loan and help you save towards future financial goals during and after graduation. 

Establish a Budget

In 5 Money Lessons for New College Graduates, I discussed ways new college graduates could begin budgeting and saving. Here are some more valuable tips.

  • Establish a budget when the first paycheck is received.
  • Set up automatic savings deposits through payroll deduction.
  • Pay more than the minimum on student loans and credit card payments.
  • Pay off credit card balances in full monthly.
  • Use a debit card to pay for purchases under $100.
See item number 6 in Back to School Budget Planner to find additional ways to save. 

Using these valuable tips and suggestions can create a successful money management roadmap.

Comments

  1. If you want to become a homeowner then FHA loans will be ideal for you. You can qualify for an FHA loan with a minimum credit score. Further, these loans also allow cosigners or borrowers who don’t live in the home, higher debt-to-income ratios, and gift money for down payments.

    ReplyDelete

Post a Comment

Thank you for providing your valuable insight.

Popular Posts

9 Ways Employers Can Celebrate Juneteenth

What's one way a company can recognize and celebrate Juneteenth? To help you find ways to celebrate Juneteenth as a company, we asked business leaders this question for their best insights. From supporting Black-owned businesses to hosting an African-American guest speaker, there are several ideas that may help you bring your employees together to recognize and celebrate Juneteenth properly. Here are nine ways employers can celebrate Juneteenth and make a financial and social impact within your community and with your employees: Launch a Juneteenth Team-Building Event Invite an African American Guest Speaker Line Up Activities To Help Employees Reflect and Give Support Black-Owned Businesses Go on Museum Tours Celebrate Through Social Media Choose a Way To Actually Celebrate Together Play Trivia Games Throw Virtual Parties Launch a Juneteenth Team-Building Event A company can commemorate Juneteenth by launching a team-building event, where everyone is tasked with researching and pr

Top 4 Ways To Budget For The Holidays

Holiday gift-giving is a time of joy, and the expression you see on someone's face when they open that perfect gift can confirm that you found the perfect gift. Gisele Bundchen stated that "Christmas and the holidays are the season of giving. It's a time when people are kinder and open-hearted." When searching for the perfect gift(s), it's also essential to keep your budget in mind. Here are tips to keep your holiday budget on the right track. Photo by  Jakob Owens  on  Unsplash Budgeting for the Holidays Budgeting for the holidays begins by estimating what you plan to spend for gifts, travel, and food. If you have children, budgeting for presents keeps your budget on track by designating what you will spend on each child. If you have a significant other, agreeing on gift purchase limits for each other can help ensure that one partner doesn't overspend. You can also pre-plan your travel by budgeting at least six months in advance and establishing a limit for f

11 Professionals Share Tips on Asking For A Raise

What's one thing to consider when asking for a raise?  To help you with preparing to ask for a raise, we asked HR managers and CEOs this question for their best insights. From communicating challenges you overcame to presenting tangible numbers and results, there are several tips that may help you ask for a raise in the future. Here are eleven things to consider when asking for a raise: Communicate Challenges You Overcame Consider Asking For Perks Prepare for the Worst Ask for More Than You'd Settle For Make Sure Your Industry is in Good Shape Expect a Waiting Period Determine Why Your Boss Should Give You a Raise Come Into The Meeting Well-Prepared Plan a Year Ahead Consider Your Timing  Present Tangible Numbers and Results Communicate Challenges You Overcame Your boss and company must see your real growth. Therefore, instead of raving about your achievements, narrate the stories of how you encountered a challenge, made a superior result, and solved an issue. When we're ne