Seven Ways To Use Your Scholarship Money Wisely

Seven Ways To Use Your Scholarship Money 52% of college students said they were at least somewhat concerned about their financial security for the next academic semester, according to 2019 survey by AIG Retirement Services and EVERFI.

Whatever the case may be — whether your parents are footing the bill or you are juggling college loans, scholarship money, and a job — as a college student, you will need to keep track of your college money especially if it’s solely scholarship money. To figure out how to consider these seven suggestions:

1.  Be Vary Of Online Shopping

Shopping is fun, therapeutic and oftentimes hassle-free (hello pandemic lockdowns). But being a student, it’s necessary that you don’t get carried away. With all your budgeting, allocate a certain budget to online shopping. Plus, always be careful of where you are shopping from and putting in your credit card information as online transactions have opened up a new problem of credit card information phishing – something you as a student can definitely not afford.

Another problem to be wary of is price gouging. When you buy something on the Internet, the price depends on your location, just change it and you will be surprised how the price might be changed. The easiest way to avoid these problems is by using a free VPN for Firefox. Using a VeePN will provide a safe and secure connection for your online shopping.

2.  Make A (Realistic) Budget Before You Leave For College

Making a budget will be the last thing on your mind once the school year begins, so do it now. There’s no way to know how much things will cost or how your spending habits will change until you actually become a college student. However, you should do your best to estimate (using the college’s Cost of Attendance as a guide) and then revise your budget after the first month of school.

You could use an Excel spreadsheet, a free budgeting app, or a template. Among the items that should be included in your budget are:

How much money do you bring in every month? Money for college typically comes from a number of different places, including scholarship money, savings, investments, gifts from family and friends, work, and loans. Institutions of higher learning typically distribute student financial aid (scholarship money), deducting the necessary tuition and fee amounts and forwarding the remainder to the student.

The amount you need to spend. How much money you will need to cover all of your living expenses and academic expenses (after tuition and fees). All of your living expenses such as rent, books, food, cell phone, laundry, medicine, etc.

Your discretionary budget. What do you anticipate spending on luxuries like entertainment (restaurants, movies, concerts, trips, video games, presents, etc.)?

3.  A Budget That Accommodates Saving, Spending, And Surprises

You should set aside some of your budget for unexpected opportunities and unexpected emergencies. Would you like to go on a trip during spring break? Create a line item in your budget labelled “savings” and put away the amount you’ll need to put away monthly to reach your goal. If you want to treat yourself every once in a while, you should set aside some money in your budget for that purpose. That way, you’ll have a better chance of sticking to your financial plan and resisting the urge to make impulsive purchases with your credit card.

4.  Keep A Budget

When you arrive at college, spend a full month keeping track of every cent you spend. You can use a mobile app to do this, but keeping your receipts is also a good option. You can make the necessary changes to your budget once you know where every dollar is going.

5.  Scrutinize Your Financial Plan Extensively

A weekly budget checkup is recommended by some financial experts. Even though you have a lot on your plate, it’s important to take time every so often to evaluate your budget. Schedule it in, or do it before or after something you always do, like a weekly study group or yoga class.

Have a look at the money you’ll need to spend this week, as well as the money you have to spend from the assigned scholarship money. There will be some sacrifices to make if your spending money is getting low. The most glaring place to look is at your discretionary spending, but you may also find ways to cut back on your mandatory outlays. Consider alternatives like a cheaper meal plan or textbook rentals.

6.  Establish A System Of Direct Deposit

Having a separate account for each of your three main spending categories (bills, spending, and savings) is a great way to stay on top of your finances. Set up separate bank accounts for your various budgeted expenses and have the allocated funds deposited there on a regular basis. Savings and bill money won’t be touched as often. If you have no money in your bank account, you have no money. You can put an end to your habit of ordering pizza at 3 a.m.

7.  Make Smart Use Of Credit Cards

Stick to one credit card with a low limit and only use it for purchases that fit comfortably into your monthly budget. If you pay your bill on time and in full every month, you can avoid late fees and costly interest charges. Also, for online transactions, don’t forget to use a VPN like VeePN.

Budgeting doesn’t have to be a downer during college. Maintaining a budget and sticking to it can make you feel good, lower your stress levels, and set you up for a secure financial future. The best part is that you’ll have more financial security as a result, allowing you to fully appreciate your time spent in higher education.

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