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College life is a life filled with fun as you don’t have too many responsibilities on your head. When it comes to finances, college students either have a side income or an allowance from their parents. At this stage, making disciplined financial choices can help them gain important perspectives in managing personal finance.

Here are some important budgeting tips that would help –

Spend within the allowance

If you do not have a source of income and live on your parents’ allowance, tighten your purse strings. Do not overspend. Spend within your allowance and even try to save a part of it. 
Budgeting starts with managing your expenses so that they fall within your income. So, as the first lesson in budgeting, managing your allowance is where you start. If you manage to bring your expenses within your allowance limit, half the battle is won. This would make you financially disciplined and give you a lesson in budgeting. In the future, when you have your own income, you wouldn’t have to worry about not being able to make ends meet.

Save for big-ticket purchases

The trendy mobile phone that you have eyeing or an international trip with your buddies sounds like a good idea. However, it involves a considerable amount of money. Your allowance might not cover the expense. Should you ask your parents for a top-up? How about saving instead?
If you are planning a big-ticket purchase, save for it in advance. Set aside a part of your income regularly to create the corpus needed to fund your purchase. Alternatively, you can make the purchase on a no-cost EMI basis and then pay for it in instalments over the next few months.

Debt is bad

As easily available as loans might be, availing of them is a bad idea at this stage of your life. Remember, loans incur interest charges which is an added expense. Moreover, if you miss any payment, your credit score gets affected. Even if the loan is small and for the short term, it would incur an additional repayment burden. So, try to stay away from debt to avoid a possible debt trap

Start a side hustle

Though a full-time job might be challenging when you are pursuing full-time education, a side hustle is a great way to earn extra money. Use your skills and start a side hustle. The additional income would make you financially independent and also help you learn the value of money. 

All these tips are not difficult to follow through. All you need is a little insight and a lot of dedication. Start young and start on a positive note. Learn the ropes of personal finance and lay the foundation of a solid financial future.