Friday, September 8, 2017
Habits You Should Develop in College: The Money Mentality
This week has delved a little bit into life as a student. We’ve touched on budgeting for students, the student debt trap and even wasteful student spending. Today’s post will be a little different. I wanted to wrap the week up by giving some credit to students. I believe it is important to give credit where credit is due. I think this generation of post-secondary students is the most engaged, most conscious and most savvy of any other generation. With the access to technology and therefore the easy access to information, this generation has the whole world at its fingertips. Despite this, I still think there is work to be done. The good thing is; I think our young people are more than capable of getting on the right track in life. In this post, I am going to bring up the traits many students have that will translate into good money management as an adult. In college, you will learn a lot of information, much of which you will never need after you ace the exam. These lessons are the ones to hold on to for life.
1) Rock that Pre-Game
Why do people get drunk before they go out to get drunk?? Simple, it costs way too much to drink at a bar. The Pre-Game is often more fun than the actual night out itself. Why is this relevant? That answer is simple as well. When you get older you will need to understand that going out often costs a fortune. Staying in is always free and often more fun. The Pre-Game prepares you for thinking about the cost of events and if they are really worth it. A night out with friends isn’t about the bar or the restaurant, it’s about the friends. Good company always trumps good atmosphere. Anyone who has partied in a barn will tell you the same. Don’t let graduating college dampen your Pre-Game spirit. Take that with you wherever you go, you’ll save a tonne of money.
2) Cohabitation is more than living with your friends
Why do students live in houses with 4 other friends? It is not because they love tripping over empty pizza boxes. It is because they know living with friends is cheaper. Sharing the cost of rent, cable, internet and hydro with several other people makes life much less expensive. When you leave school, carry that mentality with you when it comes to housing. Now I don’t recommend having roommates for the rest of your life, but I do recommend keeping housing costs at a minimum. There is an epidemic of young people getting in way over their heads with housing costs. Don’t believe me? Read any article this week about the prime interest rate going up. They speak of many people being “house poor” and hanging on by a thread to be a homeowner. For some reason, you were ok living above a garage last year and now you need a 6 bedroom mansion? Don’t fall for it, stay house humble my friends.
10 Ways to Avoid “Lifestyle Creep” – Budget Boss
3) Getting involved doesn’t end with a diploma
One thing that college students are is involved. Almost every student I meet is part of some club or association. Many of these organizations have a charitable aspect and spend much of their time giving. Don’t drop that once you leave college. It is that spirit that will land you the good job. It is that spirit that will get you the big promotion. It is that spirit that will build the connections you need to advance in life. Most importantly, it is that spirit that makes our communities a better place to live. Almost as cool as all that is the fact that getting involved in your community is almost always free. It promotes community building at a very minimal cost and as mentioned in point 1, saving on activities should be a lifelong goal of yours.
4) Research the s*** out of life
It always amazes me how many college students will know quantum theory and yet don’t know simple credit card interest. All day, every day, your professors are demanding extensive research out of you. Read this book, perform this experiment and debate this topic. How about you read this credit card statement, perform this budget task and debate your interest rates. Use that discipline and determination when it comes to getting good grades and translate that to your own finances. Challenge the bank when it comes to the work they do for you. Come prepared for meetings with your financial advisor. The more you know, the better off you will be.
10 Wealth Secrets the Rich Don’t Want You to Know – Budget Boss
5) Think Long Term
I have never heard a one-year university degree. Even one year diplomas from college have internships or further education that follows. Apprenticeships, on the job training and job placements, are all part of the game. That long-term thinking for a solid goal needs to be carried with you into your life after school. The major goals in life will not be easy and they will take time. Raising kids to adulthood takes decades. Paying off your dream home could decades as well. Saving for retirement could take even longer. These aren’t Gucci Purses or trips to Cancun. You can’t hold them in your hands and there is no tangible reward. Just like your diploma, all they are is an idea. Financial Freedom is an idea. Being debt free is an idea. Retirement is an idea. They are a lifestyle like being studious. Utilize the mentality you gained in college to think long-term and you will experience all the joys in life.
College is not all about the books and the classes. It’s not even all about what you learn. Most people will tell you that the most important thing you can learn about in college is yourself. Learn what makes you tick. Learn what you are passionate about. Learn your own fears and inadequacies and work to overcome them. Learn the habits that will last you a lifetime. These include frugality, discipline, collaboration, civic responsibility, determination, and self-sacrifice. Those are the lessons that you will take away from school. Those are the lessons that you can apply elsewhere in life that will help you out with employment, family, love and of course, money. That’s where the tuition money is really earned.
Thanks for tuning into Student Week here at Budget Boss. Thanks for all the great feedback and engagement. Don’t forget to tune in at noon for our recap of the week going live with SixFive.co from Innovation Works in beautiful Downtown London. If you have any questions or want to start your own student budget please don’t hesitate to contact me at joe@budgetboss.ca. Have a great weekend friends!
“Without frugality, none can be rich, and with it very few would be poor.” – Samuel Johnson
Email – joe@budgetboss.ca
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