Many high school students graduate financially illiterate, putting them at risk in today’s day and age. The weekly actions of an average civilian include writing checks, using credit and debit cards, and making trips to the bank—all of which college students should possess the capability to do. But some university attendees, especially underclassmen, are still reliant on their parents/guardians to be responsible for their finances. Because of this, it leads them to believe that they do not make their own financial decisions, but the truth is that they probably already are. For example, when students go shopping, whether it’s on Washington Street or at the Stevens BookStore, they are the ones who have the power to decide how they go about their purchases. They choose if they want to pay with cash or a card. They choose what they want to spend their money on. They choose whether or not something is worth its price. Hence, why they require financial knowledge to make the best choice.
One of the most effective ways to balance your money is to budget. Budgeting is when a certain amount of money is established for spending, but it is not surpassed. While mindlessly online shopping, many students will fall victim to making purchases on items they do not need, but rather ones they want. This is why it is imperative to focus on what money should or should not be spent on. If this is not followed, it would not be considered a budget. For example, when you are online shopping within your budget, you are faced with the decision of either purchasing a new phone, since yours has broken or a new jacket, even though you have a sufficient amount at home. You would rather spend your money on the jacket, but you should obviously choose the phone. This is the way a budget would work. You are forced to make logical decisions that will have the most beneficial results, all while staying under your budget limit.
Additionally, it is crucial that the set budget limit is effective. If you usually spend $100 while shopping for clothes but decide to cut back on expenses, you would increase how much money you save. So if you decide to spend $60, it would be considered an appropriate amount to purchase clothes for, while saving $40. However, it is vital to avoid setting it too low, as it could result in a lack of necessary products since you don’t have enough money to purchase the adequate quantity. If you opt for buying cheaper items just because of their price, it could backfire and result in the product use time decreasing. Since this would lead to the item being bought more frequently, it would lead to more money being spent in a shorter time span, meaning that it would overall be counteractive as more money would be spent than saved. Making an investment in products that are worth it should well be considered while shopping on a budget.
There are also occasions when people may need to surpass their budget for certain necessities. This could occur due to a rise in the prices of groceries, the need for a new car, or a treat for an accomplishment. It is important to keep in mind that a budget should not be restricting you to make your life strenuous, but help you manage your finances and stop overspending when unneeded.
So the next time you catch yourself scrolling through Amazon and start contemplating buying something, ask yourself if it is a purchase that falls within your budget and/or will add to your life. If it is, then congratulations! You’ve got yourself a new delivery to be on the lookout for. But if it’s not, make a note of it for when your budget limit increases. Your future self will thank you for deciding not to splurge.
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