April 10, 2024 - Money Guide

THE DIAMONDBACK Money Guide

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Four essential money-saving tips

By Emely Miranda I DiversionsReporter

1.

Reduce your shopping

A big problem college students face is unnecessary spending. Students frequently make daily purchases, whether it’s grabbing lunch at Stamp Student Union, buying the latest Nikes or ordering cute pink cutlery from Amazon.

3.

Create an emergency fund

The first step to budgeting is determining what you should spend your money on rather than what you can spend it on. It’s OK to treat yourself occasionally, but buying Starbucks every morning might not be the wisest choice.

Image via Flaticon.com, by Hasymi.

2.

50/30/20 rule

The 50/30/20 rule recommends dividing your income into three categories: 50 percent for needs, 30 percent for wants and 20 percent for savings.

Needs include bills, utilities, groceries, rent or other unavoidable expenses. It is the most vital category because needs are responsible for your livelihood. It is the least flexible category of the three.

The money going into the wants category pays for the luxuries in life. This can include the money you spend on eating out, renting a movie, monthly subscriptions and more. Differentiating between wants and needs can be difficult, but if you can live without it, it’s a want.

The remaining 20 percent of your income should be put into a savings account. Devoting money to this category will benefit your future. You can use this money to save for retirement, pay off credit card debt or buy your first house.

It is important to have a backup for the setbacks that may come in life. You should have a separate savings account that serves as an emergency fund.

This money would cover devastating costs you wouldn’t have been able to pay for otherwise. From minor inconveniences like replacing a tire to life-changing ones like losing your home, it is essential to have extra money to support you.

4.

Save your cash

You’re more likely to spend the digital money on your card than the paper in your wallet. Today, many places only accept card payments and refuse cash, leading many to be reliant on only using credit and debit cards.

So, what should you do with this leftover money you get from birthdays? Keep your cash in a safe place — an actual bank or a piggy bank — where you won’t be able to touch it unless necessary. Out of sight, out of mind.

Image via Flaticon.com, by FreePik.

From the newsroom: Introducing The Diamondback jobs guide

Diamondback Staff

The Diamondback has been an almost entirely online publication since March 2020. Since then, we’ve been exploring new ways to engage readers and address the information needs of the university community in the digital space.

Initially, that looked like launching a COVID-19 dashboard and publishing case counts when the university stopped publicly reporting them. From the reception we received, one thing is clear: Our audience craves accountability and transparency in the community.

That’s why in 2023, we introduced The Diamondback jobs guide, a site that empowers users to explore historic student wages and discover campus jobs. The jobs guide is designed to help students make informed decisions while looking for employment around the campus. Drawing inspiration from The Diamondback salary guide, the jobs guide empowers users to explore the data independently.

Sometimes, what worked in the past can be reimagined for the present. In print newspapers, including historical editions of The Diamondback, the classified section was an avenue to communicate local opportunities. We envision our jobs guide serving a similar purpose for the University of Maryland community.

With the jobs guide and future reporting, The Diamondback seeks to be data-driven in its approach to service the broader University of Maryland community. Thank you to the readers, students, focus group members and Diamondback staff for driving this mission forward.

ExploreTheDiamondbackjobsguideatjobs.dbknews.com.ThisguidewasmadepossiblebyNatarajShivaprasad,RinaTorchinskyandSriKanipakala.

resources to manage finances

By Fiona Flowers I DiversionsReporter

College presents students with a unique set of challenges, such as managing finances. It’s one of the most crucial skills to develop to ensure successful habits later in life. Here is a list of valuable resources to take advantage of to ensure financial success.

1 Use a net price calculator

Federal law requires accredited schools that participate in federal financial aid to offer a public net price calculator to understand financial contribution estimates. This is a useful tool when developing a budget and planning out finances. Accessing this calculator will help you allocate funds for required school supplies, tuition, fees and room and board.

3 Make a spreadsheet of expected income and expenses

By making a spreadsheet, you have a visual representation of your finances. This makes it easier to understand your expenses in regards to your income.

5 Use separate checking and savings accounts

Keeping one account reserved solely for required expenses, such as rent, insurance or tuition, and the other for more spontaneous uses, such as an occasional restaurant meal, ensures you won’t tap into your savings account for recreational spending. This can be set up through your bank.

7 invest in a coin sorter or piggy bank

It may be easy for students to write off extra cash as easy spending money. By investing in a resource to keep and save these physical funds, you can see how it adds up over time. This way, you’ll always have some sort of financial funding in case of an emergency.

9 Negotiate for cheaper prices with secondhand selling platforms

We get it — college is expensive. By using resources like Facebook Marketplace, Nextdoor and even Craigslist, you can find dorm and apartment decor for cheaper prices. For clothes, Poshmark, Depop and ThredUp offer name brands at discounted prices, and many universities have Facebook groups for students to sell old textbooks or required school supplies at cheaper prices.

11 Contact your university’s financial aid office

2 Visit the Federal Student Aid website

The website provides information on accessing grants, work-study programs and federal loans. Filling out the Free Application for Federal Student Aid form, or FAFSA, is one of the most crucial steps to understanding the finances behind higher education. Some states even require high school students to complete the form as a graduation requirement.

4 Use your bank app to track spending

Most banks offer mobile tracking options in apps, making it easier to view your spending habits and review where you spend most of your money. You can better understand your spending habits by analyzing your financial statements on a regular basis, and learn how your expenses compare to what you saved.

6 Use direct deposit

If you have a fixed income coming in on a scheduled basis, you can automatically designate how much money goes into your checking or savings accounts. If a portion of your paycheck is inserted directly into your savings or long-term account, you won’t be tempted to use it as spending money — it’s an effective resource to improve your financial literacy.

8 Take advantage of student discounts

Apple, Amazon Prime, Microsoft365 and Verizon offer discounts, and Hulu, Peacock and Paramount+ offer cheaper streaming services to students. Adidas, Anthropologie, UGG and Under Armour also offer student discounts.

10 Use digital credit monitoring applications

Mobile apps and digital software including Credit Karma, Mint, Credit Sesame are all designed to help better understand and manage your credit score.

A straightforward visit to a financial advisor at your college or university is often the easiest way to access and plan your educational finances. Do not be shy to reach out to the financial aid office — advisors exist to help students understand intimidating costs and develop effective strategies to tackle them.

Poll: Where do you work?

Facilities management

-@_tee.ven

UMPD

-@josephine.melina_

DFSL & Smith Undergrad Office!

-@brandontorrento

Rec center

-@kraziearik21

Center for Young Children

-@katiebrodsky1

The Clarice

-@lizzyawlin

AJC 6th floor, Department Animal Resources

-@gcmcglynn

DFSL Office

-@emersonktaylor

Where would you recommend other students work?

Ritchie

-@maiajerchower

University Career Center

-@rosabellaamoi

BSOS Feller Center

-@frankiedantonio

Anywhere in SORC!!

-@cylite

Terpsvote @LCSL

-@sophiaa.chau

SORC Finance

-@cylite