I would be amazed to hear of any student who has not heard of the “Broke College Student.” Whether parents are financially responsible for tuition or not, far too many of us are starting to get into that funk that tells us we can’t: We can’t eat that, we can’t do this, we can’t go there, even when it’s just a slice of pizza… and who would blame us? For many, this is the time when we are opening our first credit cards, being responsible for our first apartments and being in charge of feeding ourselves. This can be a daunting task, and if any of you are like me, you will one day find yourself on the verge of tears staring at a ridiculously small account balance, not knowing how to make your life work.
I am here to tell you not to worry.
If you are like me and freaking out about your balance, then take my advice, and stop sweating the small stuff. I’m not suggesting you go buy a thousand-dollar ticket to Europe tomorrow, but rather I am encouraging you to not be afraid to spend 10-20 bucks every now and then. There is a degree of responsibility that we all must have with our money, and I completely encourage that responsibility, but it doesn’t have to hurt.
So here are the reasons why you can say “yes!” to getting that pizza, and hopefully encourage you to get out of the slump.
1. Most things that cost the most money are already part of your tuition.
Data from the Federal Bureau of Labor shows the three things Americans spend most of their money on are housing, transport and food. So if you are a boarding college student, chances are that you have a meal plan, a dorm room, and a walk to class. Right now, the three biggest household expenses are already part of your tuition (which is already budgeted for). Use this unique time in your life to your advantage, and realize that you will never have as much spending money as you do now (relatively). Let’s also not forget that with the countless student discounts, everything is a little cheaper right now than it will be in four years.
2. You have the least amount of bills right now
Taking from the above point, if you live on campus, you likely don’t have a rent bill, electric bill, and heating bill, and probably not insurance bills, membership bills AND five various credit card bills. Right now, your money is going to be the easiest to keep track of that is ever will be. This is going to be the easiest time to figure out how to afford things that you need or want to afford.
3. Spending money will give you good credit score
For pure practicality, don’t forget about the importance of credit. Credit cards, when used right, are incredible tools. A good credit score can get you a cheaper rent, a better deal on a car, or simply a higher credit line when you open a new card. Spending on these WILL help you out later in life, and will do you much more good than throwing all your money into a savings account. These are especially good for many small transactions that you can pay off right away. Having this good credit will help you later on when you really need it.
4. Money sitting around does nothing
Right now, interest rates on saving accounts in the US are very low. Having your money sit around in a savings account isn’t going to do much for you in the long run except teach your how to budget your money. I am all for saving and getting into the habit of it (I put away 10-15 percent of each paycheck, and I like to keep enough in there to get me through a month of living costs), but don’t forget what you are saving it for: your life. Believe me, one transaction of $10 isn’t going to make or break you in 40 years. Which leads me to my next point…
5. The point of having money is to make life more comfortable
Whether this be to live in a nicer home or apartment, eat a little better (or more), be healthier, be safer, travel, have a pet, or anything that make you a little bit happier, money is best spent on things that add to your life. It is typical US culture to “live to work,” but work and school are not always going to make you happy, no matter how much you may love what you are doing. There are always bad days. So get a cat, go out for a garbage plate, drive to Lake Ontario at 2 A.M., say “yes” to travel plans with a friend, go home for break, buy those concert tickets, buy a mattress pad: you will thank yourself, and soon realize how quickly the stress leaves, and the money comes back.
