4 Smart Ways To Spend Your College Refund Check
By Denver Regine Lark
Denver is a part of the TLC College Ambassador Program and attends North Carolina A&T University.
Did you get a refund check back this semester, or are you expecting one? Instead of using it the check to splurge on something you’ve had your eye on, we’ve outlined four smart ways to put the check to use.
1. Repay It
One of the hardest but smartest ways to spend your college refund check is it repay it. Paying off your debt earlier than later will make it easier for your pockets, as opposed to having to conduct a payment plan on a regular basis. Remember that a refund check is not a gift from your university allowing you to splurge. It must not only be paid back, but some may have to be paid back with interest. Even if you do not get enough back to completely conduct a repayment, you’ll feel better knowing that you are spending it on priorities.
2. Invest It
Investing means more than putting your money in stock or any other way that allows your money to grow on its own. You can invest your refund check into books, tuition, room and board, etc. This lessens the stress of how you will be able to pay these certain things in the future. Some people prefer to venture further and would prefer for their money to grow for them. Savvy investors invest in stock because it has the highest potential returns. However, stocks can be volatile investments because stocks rise and fall in a short term. Many people invest in bonds because bonds pay interest semiannually meaning they provide a predictable and expected income. Bonds also provide an expected interest income.
3. Donate It
Per the Charity Navigator, 70 to 80 percent of American households donate to charities, and the average American household contributes more than $1,000 annually. Some people donate because they want to make a difference, some feel obligated, some do it to get credit and others do it because it’s socially expected of them. However, some people cannot give financially so they give time by volunteering at nonprofits that are important to them. Still, whether you can give financially or volunteer your time, your donation will make a difference to an organization, and, most likely, to at least one individual.
4. Save It
Saving money can be very hard for some especially when there are so many temptations. If college has not taught you anything else, it should have taught you how to be responsible with your money and that it goes fast. When it comes to saving money, it’s important to prioritize, spend your money on what you need and not forget about unforeseen expenses like emergencies. Consider this, if you cannot buy it twice, can you afford it? Banks even offer savings account where once the money is in there you cannot take it which forces you to keep the money for rainy days. Think twice before making unnecessary purchases. Do you really need that 18th pair of shoes that cost $300 when you just brought two pairs before this blessing of funds? What will you do two weeks from now when you need $300 for new brakes on your car? Is this placing priorities first? I think not. Impulse buys is what causes a lot of people, not just college students, to not make the most out of their money.