So, you’re in college and out on your own for the first time. That means that you are in the perfect situation to start building your own financial security, so you are in a good financial position by the time you graduate. When you prioritize financial security as a college student, you can get even more fun out of college life.
Create and Stick to a Budget
The first step to financial security is to make sure that you have a budget and that you actually follow it. To create a budget, according to Ameriprise, you first need to know what your income looks like. This may come from financial assistance, your job, or even help from your family. Then you need to consider your expenses. In a good budget, your major expenses are covered but you should still have a little room for saving and discretionary spending. The most important elements are making sure your housing and eating needs are covered in addition to your school costs.
Cover Your Insurance Needs
Next you need to make sure that you have insurance coverage, so you don’t face unexpected expenses when you aren’t prepared. In college you can generally still be on your parents’ health insurance, but you may still need other coverage. Rental insurance can cover your belongings in your apartment. Car insurance will make sure you are covered if you are ever in a car accident. Car insurance is also legally required, so it’s important to make sure you have coverage. According to Insurance Center Associates, you should have at least $100,000 in liability coverage on your policy.
Pick Up a Part Time Job
While you are in college, it is important to focus on school, but having a part time job can help make your financial situation a little easier. Having an on-campus job is a great way to have work that is flexible and allows you to prioritize your education. Once you start working make it a point to put away money into your savings account from each paycheck. According to Making My Way, building up your savings will help you to have more security if anything was to happen.
Becoming financially secure in college is a pretty big challenge, but it is totally manageable if you make it a priority. Sometimes colleges even offer seminars or even full classes on becoming financially independent. Taking time to secure your financial security in college will set you up for a financially stable life.
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