Why You Need to Take Responsibility for Your Financial Life Right Now

Note: At Zen College Life, we like to look at how we can squeeze the most out of life. I firmly believe that not having to fret over finance frees you up to make the most of your time, and your life.

This will be Part One of a series of practical tips to take control of your personal finances that will be posted over the course of the next few weeks.

When I was a kid, my parents would take my sisters and me to the park.  If I fell off the swings and skinned my knee, mom and dad will be there with a Band-Aid, but it was on me to get back on the swings.  Once my friends and I grew old enough to go to the park on our own, we were responsible for ourselves.  We could run back home if someone got hurt, but it had to be pretty bad to justify ending our independent adventure.  In college, we’re now in the park with just our friends.  Mom and Dad are a phone call away, but who wants to be the crybaby who calls home when he gets a small cut?

Waaaaaaaa

What am I getting at? College is the final playground before we hit the real world. Just as we got the chance to blend the slides, monkey bars, and swings into an awesome playground adventure, in college, we have the opportunity to combine classes, internships, extracurricular, partying, and so much more into one incredible experience. With all this fun comes responsibility, though.

In my completely unofficial and totally informal sociological study of my college friends and peers, I find the most concerning area of irresponsibility to be personal finance.  I’m all for having a good time and spending some money to do so.  My problem is when there’s more money going out than coming in.  Also, I don’t want to hear about how you have no money and are screwed when student loans kick in as you zip up your new $150 hoodie.  College is the best time to get a grip on your finances and set yourself up for future success.

Take that you irresponsible spender!

Why is college such an awesome time to get a grip on your personal finances? In lieu of rambling on about all the reasons, I’ll just touch on the major ones. By the time I’m done, you’ll be thinking of reasons on your own.

1)    We have more wiggle room for error than we would have in the real world. If we screw up in college, maybe we run up some credit card debt to cover ourselves (which I strongly recommend against); if we screw up in the real world, we miss the rent.

2)    It’s easy to live like a cheap college student. My school shows fairly recent movies for free every weekend and this weekend I’m going bowling – complete with shuttle to and from, food and drink – for $5. I just picked up tickets to see LeBron James play next week for $10. Your school has a bunch of groups that run cheap events; take advantage of them! Spend less money and you’ll have more to save and invest.

3)    Your school wants to help you succeed financially! My school just wrapped up a 4 week financial literary series.  Each week, different groups on campus made presentations.  Some presentations were by faculty members, but others were by student groups.  Look for a similar event on your campus.  Because these presenters are usually from on campus, the series doesn’t have to end with the last lecture.  If you find a particular topic confusing or interesting, get in touch with whoever talked about it.  They’ll be more than happy to pass along more info or direct you to where you can learn more.  If you can’t find one, email the appropriate professors and seek their advice.

4)    You have free time! Unless you were that kid who signed up for 17 different clubs and became the president of each, you have the time.  I take 15 credits, have a part time job, am a member of two clubs, and volunteer with other causes and I have plenty of free time.  I know others who are involved in way more activities than I am and still find the time for other things they find important.  “But I’m different!  I really don’t have the time!”  If that’s your response to this, sit town and take a good look at your schedule.  If you’re truly stretched so thin, maybe its time to scale back on a few activities.  Really, what benefit are you to a club, or is a club to you, if you can only put in the bare minimum?  Pick those that are important to you, excel in them, and regain some sanity.

5)    Mom and Dad (or Grandma and Grandpa, etc) are usually there to fall back onto.  I’m not advocating that you run for help with every set back and I’m not saying that someone will subsidize all your wild shenanigans; but in the case of a real, legitimate disaster, those who care about you will be there to help out.

I’m sure by now that you’re beginning to see why college is such an ideal time to begin conquering the skills required for effective personal finance.  Now, you have an idea of the why.  In the next few posts, I’ll dive into the how and share my personal experiences as I delve deeper into the world of personal finance.

‘Til next time…