Very few high school students heading into college are financially savvy. The freedom college presents can be tempting and lure quite a few into spending a good chunk of there savings as well as any money they get from their part time job. Here are a few reasons why you might want to consider using the financial buddy system during your college years:
Why It’s Important
While some students may blow all their money on movie tickets or other events every weekend, not all have that sort of cash or want to use it all. This is especially true for students who are already starting to pay off their student loan debts before they graduate.
Choosing a partner for a financial buddy system will help you both make sure you’re spending your money wisely. It’s important to choose a partner you can trust and will keep you accountable. Once you both agree, set the ground rules. Design deadlines and certain goals that should be met each month.
Keeps You In Check
Once you’ve both made the commitment, it’s time to keep each other in check. It’s a great start to say you’re going to pay off your loans faster, but what’s holding you to the commitment? This is another agreement you should keep with your partner; there should be penalties if one doesn’t meet the required amount.
Apply This To Other Aspects of Your Finances
As we said previously, it’s very easy for a student to want to head out every Friday and Saturday night to spend with their friends. However, not all students will have that type of cash. A buddy can also make sure you’re staying in those evenings and reaching other financial goals you may have set beyond paying off your student loans. A great example would be to start building a strong savings account while you’re still in college.
Rewards For Meeting Your Goals
Another benefit of the financial buddy system is having a reward when you’ve both reached a certain goal or milestone. While you don’t want to go out and spend next month’s money, you could both find an inexpensive reward that will also help keep you on track every month.
Both Need to Be Accountable
Sadly, if one partner isn’t holding up their end of the bargain month after month, whether it means paying off their loans or holding the other one accountable for missing their deadlines, the system won’t work. If this turns out to be the case and a meeting isn’t helping, it may be time to find another partner.
The financial buddy system won’t work if there isn’t accountability on both ends and this means it has to be there from the very beginning. However, if you’re having a hard time meeting your financial goals or sticking to a payment schedule, a financial buddy may just the thing you need.
Use College Raptor to discover personalized college matches, cost estimates, acceptance odds, and potential financial aid for schools around the US—for FREE!