By Tabish Hussain

For the Collegiate Review

Have you ever craved Chipotle, Chick-fil-A, or any fast casual restaurant for a quick meal and then shortly realized that you do not have enough money to pay for it? Or that it simply does not fit your budget at the moment, and then you decide to walk to Port Sky for something a little more reasonable? Especially as college students, I think it is safe to say that we have all had at least one of those not so great experiences. 

Many of us as we get older and start a completely new life in college come to realize that we do not have nearly as much money as we had when we were back home, or under the wings of our parents. Instead we learn that we have to make diligent purchases and make sure that we save our money for anything ranging from necessities to immediate emergencies. However, for so many young college students, it is difficult to properly save money and manage their finances. 

There are different ways that you can take charge of managing your finances such as, creating a savings account, an investment account, or even cutting back on your spending to only things that are a necessity. As a college student, especially a Penn State student, we always want to attend the amazing football games, try all the food downtown, and ride the spin bikes, however all of these things increase our expenses immensely .

One of the biggest adjustments that you can make right now to further improve your finances is to slowly start cutting back on unnecessary purchases. Some unnecessary purchases that drain our bank accounts include, purchasing coffee every morning, eating out everyday, buying bottled water, and buying the most expensive clothes instead of finding cheaper alternatives. With controlling your desires and staying disciplined with where you spend your money, in just a short amount of time you will realize how much of a difference it makes. You will notice how you have a little bit of extra cash to spend and you’re able to do whatever you desire. 

 One way to help create a balance in enjoying activities at a reasonable budget is to set aside a savings fund solely for the purpose of certain activities. For example, setting aside a portion of your earnings every month in an account that is only for “going out with friends”, “traveling”, is a very powerful tactic in saving money. 

Another helpful tactic that helps accumulate wealth is opening an investment account. Many people believe that in order to open an investment account you need a lot of money to start out, but you can actually start out with as little as $50 or $100. With opening an investment account, you can set aside money every month that can grow over a span of years. Ultimately, this will leave you with more money than you started with down the line and allow you to be comfortable with your spendings.

 Furthermore, for those out there who are college students and hold a job, such as working in the Port Sky Dining Hall, it is really advantageous to set aside a certain amount of your paycheck each week to an investment or savings account. A rule that is often overlooked in the world of investing is the 70/20/10 rule created by Warren Buffett. The 70/20/10 rule expands far beyond grown adults, and rather can be applied to all groups of people as the rule advocates for 70% of your income to be used for everyday spending, 20% for saving/investing, and 10% for repayment of debt or donations. 

To make a difference as soon as you can, treat everyday step by step and start with the little things that you can control. Start with cutting back on unnecessary purchases and setting aside money every month. Then, ultimately build yourself and your finances to the point in which they are stable and you are comfortably living as a college student. 

About the Author

My name is Tabish (Tabi) Hussain and I am from Massachusetts and plan on majoring in Finance as I am a part of the Smeal College of Business. Managing my own personal finances has been so important to me because it has allowed me to become more responsible, knowledgeable, and develop good habits that will carry with me for the rest of my life when it comes to spending money. I hope that this article will help kickstart Penn State Altoona student’s desires for financial planning and help them get an understanding of where to start. I also hope that it will allow students to realize how important finances are and become more comfortable in talking to others about it.