Saturday, 5 March 2016

4 Tips on how to manage your Allowance

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Hello!

An allowance can be an excellent tool for teaching student how to manage their own money with confidence and self-discipline. Mostly, students are facing with the problem to manage their monthly allowance from college/parents. As a student, facing a lack of money while you are studying far away from home is a major case. How will you survive if you do not have money? you cannot depends on your friends,nor yourself.  so what will you do to manage your allowance?
Here are 4 tips on how to manage your allowance:

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1. Create a budget.
 This is incredibly important. List monthly income sources, including savings, wages and parental allowances, and then write down estimated expenses for the month. It isn't easy to identify college living expenses in advance, but you should try. Take costs such as school supplies, food outside your meal plan, personal care items and laundry into account. Then, try managing your budget and tracking expenses using an online personal finance management tool like Mint.com, which helps you easily create and stick to a budget.

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2. Separate wants from needs.
Is $30 per week for gas a "need" or a "want?" How much should you budget for non-meal plan food? How much will laundry cost? After a few months on campus and tracking expenses, it becomes easier to distinguish wants from needs and put a plan into action. Some students give themselves a weekly cash allowance rather than carry a debit card, and when that week's allowance is gone, they wait until next week for more "wants."

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3. Shop smart for textbooks.
 Textbooks are one of the biggest college expenses – a brand new edition of a biology book can cost upward of $300. Bypassing the campus bookstore at the start of each semester is an easy way for college students to save an abundant amount of money. Invest in a Kindle or iPad and download your books – they are less expensive that way. Or look for books in used bookstores or online. Even with shipping costs, the price can turn out to be significantly cheaper.


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4.Set up a checking account.

 Banks usually cater to college students by offering free checking and saving accounts, which allows students to avoid fees on withdrawals or fund transfers. Shop around to find a bank with convenient ATMs near campus to eliminate out-of-network charges. And keep in mind that when an out-of-state check arrives (say, from grandma), it may take a few days to clear, so keep an eye on the account balance before spending against it.

Goodluck!

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