According to a recent study from FinanceBuzz, nearly two thirds of Gen Zs don’t own a checkbook. Gone are the days when you’d write down every dollar that came in or went out of your account in balanced checkbook ledger. Today, most people manage their finances online. But the idea of a checkbook as a space where you track your funds on a regular basis is key to financial success. Here are a few ways to create a financial “checkbook” that works for you.
Find a Manageable Tracking Method
Whether you prefer pen and paper or a digital format, determine what medium works best for you to oversee your funds. With so many different kinds of transactions — paying for books, dining out, filling the gas tank, shopping — it can be easy to lose track of when and how you spend your money. Choose a method to keep track of your funds, such as spreadsheet, a banking app, or even a paper journal. Be sure to note both how much you are spending and what you are earning so that you have a holistic view of your finances at all times.
Create a Realistic Budget
A recent survey from Civic Science found that 76 percent of adults are at least “somewhat careful” about budgeting their monthly income and 32 percent of the Gen Pop have turned down an invitation to socialize due to budget constraints. Creating a budget allows you to look ahead and understand your current balance of available funds — and what you may need moving forward. It also allows you to create space for unexpected expenses so that you don’t blow your budget.
Speaking of budgets, it’s important to be honest and realistic when creating a budget. For example, if you know that you typically spend around $100 each month eating out, don’t allot for $50. By creating a budget, you can see exactly where your money goes and may even find ways to adjust your habits to increase your savings.
Manage Your Credit and Credit Cards
College is a time when many students get their first credit card, or perhaps more than one. Remember: with financial freedom comes risk. If you decide to open a credit card, use it responsibly. Make sure you understand the terms and conditions associated with the card. Adhere to payment dates to avoid late fees, and understand the amount of interest you’ll incur if you don’t pay the bill in full. Being careless with your credit card can lead to bad credit, which can impact your finances for quite some time.
Protect Yourself
In the past year alone, more than 52 million Americans had fraudulent charges on their credit or debit cards. Don’t become one of them. Protect yourself by keeping your personal information private; buying online from secured, legitimate sites; and monitoring your credit card statements. Being vigilant and taking steps to prevent your personal information from being compromised will help protect you from identity theft and keep your finances in check.
Think About Earning Extra Money
It’s always nice to have some extra money, and there are a number of ways students can earn additional income, including babysitting and freelancing. Consider what might be a good fit for you and then explore your options. Once you have extra cash coming in, use it to help build your savings — you’ll thank yourself later.
A financial checkbook is your key to financial success. Create a budget to better understand your expenses and tweak your habits to help increase your savings. Most important, live within your means to set yourself up for a healthy financial future.
ON TOPIC
One Cent at a Time
Money matters can be overwhelming, so start your financial journey on the right foot. Form some savvy, money-saving habits now and carry them with you through life. Little things add up, so don’t discount any effort you make to start saving.
Buy Second-Hand items
Textbooks are expensive. Before shelling out the full price, try to find a used books at reduced prices. Seek out students who completed your upcoming classes and search online stores to comparison shop. When available, consider e-books to download to your laptop. Not only will they make your backpack lighter, but they’re typically cheaper than a physical textbook.
Similarly, connect with students who are moving out of the dorms and may be selling their gear. Buying a used fridge, microwave, or coffeepot will certainly help your wallet. The same is true if you need to furnish an off-campus apartment. Secondhand stores and garage sales often have basic household items — and even a few treasures — just waiting to be put to good use.
Have Some Low-Cost Fun
There are lots of ways to have a good time without spending much money. You and your friends can take turns hosting movie nights rather than going to the pricey cinema. Get a group together for a no-cost hike. Spending time outdoors will do your mind and body good — and you’re sure to find a spot or two for the perfect selfie. When you opt to go out on the town, remember to stick to your budget.
Take Advantage of Campus Offerings
Many colleges provide amenities and services to students — use them. For example, there may a free shuttle service that can take you to and from stores, restaurants, medical facilities, or other places near campus. Rather than spend money on a gym membership, use the recreation or athletic center on campus to work out and even take Zumba, yoga, or spin class. Keep an eye out for information about free campus events like movie or comedy nights, day trips, concerts, and the like. Think about all the fun you can have — and money you can save — by taking advantage of these opportunities.
Challenge Yourself
We’ve already established that it’s important to set and live within a budget. You can go one step further and set savings goals as well. Challenge yourself to save the change in your pocket each night and increase the goal as you become more comfortable. You’ll soon see that even a few dollars a week can add up quickly. As you watch your cash stash grow, you’ll likely be more motivated to continue building a nice nest egg for after graduation.
