This past Friday thousands of students collected their financial aid checks. That same day, GameStop reported high volumes of traffic and increased sales. That same evening, many young people came out of the local mall with several bags in their hands, several times. Only a few students were spotted buying books and school material at the campus book store.
This is exaggerated, but illustrates a point. How are students who receive financial aid spending their money? Most students know or have heard of individuals who get their financial aid money and waste it. I've even heard stories of people who get their financial aid money and then mysteriously vanish off the face of campus, never to be seen again. This is abuse of a system that is in place to help students. The system is a great help and many students need it, but what some students cherish and appreciate, others take for granted.
Which brings us to money management skills to help students be successful. We must keep in mind that it's always easier to spend money when it's someone else's. But that shouldn't prevent us from learning how to manage it.
Because of my own experience, I learned a couple of things that have been instrumental in keeping me afloat with my bills and other obligations in these tough economic times. Being able to manage those dollars in my bank account is a skill. I lacked that skill, but in order to improve, I decided to learn better money management. The fact that it's a skill enlightens us, that it's something we can learn, if we lack it, or simply get better at it, if we already possess it.
Here are some tips that help me out on a regular basis and that I hope will help you also. If the government happens to be looking for solutions to the national debt, maybe it'll help the feds, too.
First, you don't have to spend money just because it's in your wallet or bank account. Though you may feel tempted to do so, know you don't have to and that you have the power to resist.
But how do we get the power to resist when we never have before? Something that has helped me is being able to distinguish between a need and a want. For example, I need to have my expensive school books in order to be successful in school, but I may I want to buy that costly, brand-new, popular game that I don't really need. If I can identify between wants and needs, it will enlighten me for the best buying decision. This means sacrifice that will pay off later.
Another concept that has helped me better manage my money is knowing the meaning of delayed gratification. Delayed gratification is the feeling, or lack of feeling, when we put ourselves through sacrifice, knowing in the long run it will pay off, such as saving money or denying oneself unnecessary wants. Saving money will pay off later, and saying no to an unnecessary acquisition will make you feel good about yourself.
These two simple concepts have been beneficial to me and I hope they are also for you. So next time you're in a situation feeling the allure of spending your money, ask yourself the following question: Do I really need this? If yes, then it could be a necessity. If no, then it's a want and probably something you could do without. The strength lies in knowing which is which and so progressively developing money-managing skills. If you forget everything, remember this simple equation:
Want is less than Need. Need is greater than Want. Need = Yes. Want = No.
Delayed gratification = greater payoff.
The author is majoring in ag business at Merced College.
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