Student Loan Dodgers

If you’re a college student, you need to become very good about handling money. That’s the unfortunate reality of college life. Most kids come to college unprepared to handle finances, and that usually spells trouble.

If you find yourself in this situation, learn as much as you can as fast as you can about managing money. Check with your Financial Aid office, groups on campus, banks, credit unions and even the local community colleges to see if they can recommend courses on personal financial planning. Also check online for resources that you can use free of charge.

Develop a long term plan for managing your money. Set some goals and create strategies that will help you accomplish your long-term plans. Part of your plan may be setting limits on how much you’ll borrow, devoting time to seeking out grants and scholarships, and researching student loans to make sure you’re getting the best deal possible. Your long-term plan might cover the next two years, or even the entire time you’re in college.

Develop a medium-term plan. Know what expenses you have to address in the next six to nine months and figure out how you’re going to cover those while still making progress on your long-term goals. Looking ahead will help you avoid being blind-sided by expenses you may have overlooked.

Develop a short-term plan. Know what expenses you have to address in the next three to six months. Develop a plan for covering those expenses, in light of your medium- and long-term spending plan.

Develop an immediate plan. Know what expenses you have immediately. Also keep your regular monthly expenses in mind. These can include rent, transportation, loan and credit card payments, food and utilities. Understand how much money you need to have each month to pay these regular expenses, and figure out how much additional you’ll need to have to reach your long-term goals.

If you plan in these stages, your needs and resources will become apparent, and you can avoid being surprised. You can also begin to apply some financial discipline to your spending, if you have a clear picture of how much your lifestyle really costs.