Given the state of the economy , how much more applicable could a workshop on finances be? Whether you are spending your $5 allowance on the movies, or you have a budget of $15,000 for a new car, money smarts are necessary for us all.
Financial Literacy for Women presented by Lisa Davis Clark at the National Conference for College Women Student Leaders, gave a brief overview of financial terms, offered tips for spending and saving your money wisely, and explained how to establish good money habits.
Take a moment and make a list of what you spend money on. Is your list pretty long? I never thought how much I actually buy or what I spend money on — clothes, food, entertainment, gas, car payment, school, hair, gifts, phone, housing. The list goes on and on. As my list became longer by the second, I felt guilty that I was planning to go shopping after the conference for the summer must-haves. But how do I lesson that urge to shop?
Davis Clark drove home a simple message: priority items. “What does your lifestyle require? What does your income provide? What are your weekly/monthly expenditures?” she asked.
These questions can help you figure out what your disposable income is. You need to know and be honest with yourself. I know that I have a set amount of money allotted to me for the summer I’m in D.C., so I have to spend my money wisely and not impulsively shop, which is a struggle in this amazing city.
Davis Clark provided tips to help make smarter shopping choices. She suggested using cash when shopping so you physically have a set amount of money, and when it’s gone, it’s gone. If you are going to use a credit card though, pay it off each month; don’t pay interest. If you feel you need a credit card to raise your credit score, use it sparingly. Leave it at home; bringing it with you only makes it more tempting.
Savings was another big topic of the workshop. It’s hard not to live paycheck to paycheck since I am able to work so little because of school, and my car payment takes a large chunk of my paycheck, but with Davis Clark’s suggestions, I think I can start building up my savings. It may be challenging, but start putting aside a small amount from each of your paychecks; let’s say $20 each paycheck. That $20 will add up each week, and you will become so used to not seeing the money you will be surprised what savings you can amass.
Multiple savings accounts can help lesson the likelihood of exhausting funds in your main savings account. Each account could be used for a different purpose. Direct deposit can be a great tool for this as long as you don’t abuse it. You want to be sure when opening new accounts or signing on with credit cards that you understand and keep updated on all of the company’s or bank’s rules and regulations.
If you take anything from this workshop’s blog, realize that you need to know your priorities. It may be hard to walk away from a cute pair of shoes or to reduce your nights out on the town, but it will be for the better. By no means am I saying never buy fun things; just do it in moderation and with the thoughts of your cash flow and budget in mind. I can proudly say that after the conference I did not go shopping. I did do something for myself, though — I took a nap, which was just as rewarding.
This guest post is by Melissa Downin, NASPA intern. Melissa studies Elementary Education at Western Illinois University.
