Money. Besides grades, money— and how to get more of it— is the chief concern college students face at the beginning of every semester. Unfortunately, many make poor choices during these four or five years that lead to debt and bad credit.
Joseph A. Sharpe, a financial adviser for Raymond James and Associates Inc., said there is actually a way to keep out of debt and still maintain a less than destitute lifestyle.
“You have to follow a simple plan,” said Sharpe, a former University of Memphis student. “The first very basic and important step is to have a good estimate of what your costs are going to be.”
The cost of books, meals, tuition and other activities must be taken into account, according to Sharpe.
Second, Sharpe suggested that the student have a written plan.
“Would you want to work for a business without a written business plan? We are our own business managers, so we need a business plan,” said Sharpe.
Once all of the expenses for the semester are documented, the third step is to establish the budget, which, to be effective, must be realistic.
“Fourth, we have to live within that budget,” said Sharpe.
Admittedly, living within the budget may be the most difficult part of the plan, but it is also the most important, along with looking for bargains, according to Sharpe.
Students who live on campus may want to begin with comparing prices from different stores on daily expenses. For example, the General Store in the University Center, which is convenient to students who live on campus, is also more expensive for some items than the Exxon at Poplar and Highland. Famous Amos cookies, $1.59 at Exxon, are $2.00 in the General Store. Bottled 20-ounce Coca-Cola is $1.09 at Exxon, while the General Store charges $1.25. These slight increases in price for everyday items can add up considerably over time.
Students interested in remaining socially active while adhering to a budget may want to keep up with what sports games and plays have tickets available for free or a reduced price at the University box office.
“Look for bargains on gas, meals, books, everything. These skills will last you a lifetime,” Sharpe said.
Sharpe’s final advice for students is to “be proactive.” Paying cash is one way to guarantee that expenses are not adding up on a credit card that will charge interest later.
“We always save money when we’re proactive,” Sharpe said. “Go out on Friday night. Have fun. But don’t put it on the Visa card.”
