After the Refund Check: Budgeting Tips and Navigating Money Management

Getting a refund check can almost be seen as a blessing and a curse! The money looks good in the account, but sometimes we can get a little too carried away when it comes to spending it. While we all love the extra money, how you choose to manage it is more important. 

Take Care Of Outstanding Balances 

If you are lucky enough to receive a hefty refund check, make sure you take care of all of your outstanding balances first, especially if it deals with school. The last thing you want to do is blow all your money and abandon your responsibilities. You should also consider using some of the money to pay back a loan or two, if you have them, or pay off that credit card you’ve been swiping to keep you afloat. Take care of the important stuff first, then decide how you want to spend the rest of your money. 

Determine Your Expenses 

You might hear this often, but making a budget really is a key to financial success. Determining your expenses and making a budget is important because it teaches you how to be responsible with money, ensures that you will have enough money to pay for certain things, and it’ll overall make life easier when it comes to making timely payments for bills in the future. Budgeting your money early is important, especially in college. Not only do you set your future self up for success, but it’ll save you the embarrassment from splurging on things that you thought you had the money for. 

Create An Emergency Fund

Some people think that you have to be older to create an emergency fund, but that is not the case! An emergency fund is essential when it comes to staying prepared for unexpected expenses. You can open a basic savings account or even opt for a high-yield savings account with a great interest rate (APY) to earn extra on the money that’s sitting in an account. Do your research to determine which savings account works for you. Some banks require you to keep a minimum amount in the account, have a certain limit on withdrawals and transfers, or charge you an annual fee for keeping the account open. Regardless of the route you choose, it’s important to put money aside for a rainy day.

Cut Out Unnecessary Spending

We all know the saying: “Scared money don’t make money!” While this can be true in the world of entrepreneurship, it shouldn’t apply to college students just yet! Unless you have a little extra money to spend on investments, materialistic items or a full-course meal, you should cut out any unnecessary spending. If you have food at home, cook instead of buying dinner! If you’re Doordashing food to your dorm, opt for standard delivery instead of paying extra for the faster service! Cancel those subscriptions you barely use! Take the time to really understand where your money is going. Hold yourself accountable, and be aware when it comes to your monetary transactions; many people don’t even realize the amount of things they have on auto-pay until it’s too late!

Be Realistic 

Sometimes you can’t ball out like you want to, and that’s ok! It’s important to be realistic with yourself when it comes to making big purchases and spending unnecessary money. If you know you can’t afford to go out with your friends or splurge on cool clothes during Market Thursday, tell yourself no, and don’t swipe that card. Never spend money you don’t have! I know it’s hard, especially when you want to fit in with your peers who may get more support financially. But always remember, real friends stick with you during hard times and won’t ever judge you for being honest.