I have $17 in the bank! How does that happen? I really am a poor college student...and I've only been in college for a week. It's ridiculous, I have no bills to pay, my parents are paying for college, my grandparents gave me $800 for books, I got $2800 in scholarships that I didn't even sign up for just because of my ACT's. So college is costing me nothing. My classes even work out so that I only need to buy lunch twice a week, and I could absolutely get away with packing it. I have TONS of clothes, shoes, bags, pens blah blah blah. No reason for me to spend money.
So WHY have I spent upwards of $1600 just with my debit card or out of the ATM in the past 3 months? Or how? I think that I may have an eensy bit of a spending problem. I know that if my mother saw my bank statement she'd flip...she's frugal (yet generous. She's probably given me more than $150 spending money just in August. Yeah, it's gone.).
I have a problem. Considering I just got a job a few days ago...my spending habits haven't been rational at all. I mean, it's kind of a joke in my family that I've got a really big hole in my pocket...and to this point they've been easygoing about it. I think they're used to it...and honestly they don't notice a lot of the time when I've bought something new, because I have so much STUFF. It's hard to tell sometimes. But my friends, since they're with me sometimes when I shop or they notice when I've got something new, usually mention that my spending habits aren't normal.
It's to the point where sometimes when i buy something (this is usually when I've bought 3 or so DVDs at the same time.) I'll shove the bag and stuff in my purse before I walk into my house. Isn't that the definition of a problem? When you make an effort to hide it?
Eek! Cut my cards and take my checks, I need to stop!
I can relate. Its tough esp. when you have those shiney plastic cards. Easy to spend, spend, spend and not even think a second thought about it.
All I can say is make a budget, determine how much you are wanting to spend on certain things and only take out that much money, once its gone, then its gone.
Also just like with WL, write everything down, every penny. It makes a big difference and I myself need to take my own advice at this one! I was doing really good, writing it all down, keeping track....................Anyways. It does work, just be sure to do it!
Another idea is to not carry around your plastic or checks. Only carry cash and only carry a small amount at a time.
If your mother is very frugal and good with money, maybe have her sit down with you and help you figure out a budget. I know this may be hard, but sometimes its easier when we have a little help and maybe admitting to her that you have a little bit of a spending problem, might help you.
I wish you luck and hope things get better for you.
Yeah, I definitely think this is a common problem in college. Especially in your situation--as you said, you have no bills, no college tuition to pay, no regular expenses, etc., and that usually amounts to no worries, so you don't even give it a second thought when you start spending! And especially if you're not living at home while at college, then you have the freedom to NOT have to hide your purchases for fear of interrogation from family, so the added freedom probably doesn't help (couldn't tell from your post if this is the case or not).
I think it's good that you recognize this as a problem before it gets out of control. After all, you said you have a job now, so you can replenish the money in your account. Also, if you've only been using your debit card, then you at least haven't gotten yourself into tons of DEBT, which I think is usually a sign of a major problem--spending money you don't even have!
I agree with others that in such a situation, cash is key. When I was in college, I budgeted my money using cash. I would not allow myself to use my debit/credit cards and would only spend my cash (I worked at a restaurant, so I always had cash from tips. You could do this similarly by just taking out however much cash you want to allow yourself each week).
I can't say I've been in a similar situation (since I'm actually more of a tightwad, myself), but I've seen it happen to others, and it's when the bank account gets too low that they often turn to credit cards to "feed their addiction," so to speak. So again, it's great that you noticed this before it got to that point. If you have so few bills/expenses, then this is a GREAT time to SAVE money! When I graduated from college, I was in debt up over my head, and it only got worse when entering "the real world" (student loans I'll be paying for the next million years, credit card bills from regular expenses that I didn't have the money for when I moved off campus and had to pay rent regularly, car payments since the car I had in college completely died on me, car insurance since I couldn't be on my parents' policy anymore once I graduated, and so on and so forth).
Maybe, if you need the deterrent, you could check with your bank to see if they have a debit card plan that is more difficult to use. You could switch to a regular ATM card (no Visa or Mastercard logo--these are accepted in way fewer places), or even see if they have an account where you get charged a fee every time you use your debit/credit card (most people would avoid this, but as I said, you may need the deterrent). And the budgeting with cash idea--I think it makes the idea of money much more real when you've got bills in your hand and can see the amount rather than just a little plastic card.
In any case, good for you for noticing, and good luck! Hey, maybe you spending so much and me being the cheap one I am, we should go shopping together My friends actually comment sometimes when shopping that they feel bad buying things because I never buy anything
YOu have the same problem my sister has. Freshman year, she came home with a $1600 credit card bill accumulated over 10 months. My mom was angry. Just this summer, she racked up a $4500 credit card bill in 8 months. Then my family thought this was a real problem. I don't believe she has an addiction, but just a really stupid habit she ignores. SHe doesn't really question whether or not she NEEDS things because she lives by her motto, "Live like today might be your last". And although I could never agree with her rationality, I have to be more understanding than yelling at her like the rest of my family.
SHe also has job. SHe's always worked during college, and she spends just more than she makes! I am the same age as she is (we are fraternal twins), and yet I keep a good balance. Occasionally my funds are low, but they never rack up to be anywhere higher than $100 (if they did, then that would mean I have a method of paying for it). I don't work now, but this is a good reason why I'm frugal. I find that people who work and make more money also spend more money.
I used to leave my credit card at home. If it was worth going back to get it to make a purchase, then it was worth the buy. The problem with this, is you won't have something for emergency use (broken car, etc).
Carry around a little notebook with you over this month, maybe even from now through the holidays (they can be tough on anyone). Write down in it every penny you spend even if it is a quarter on a newspaper. Use this to set a budget. This will be the best education you can give yourself.
last week before i got paid - i put an AD on CL and found someone who was willing to give me 20 bucks and fill up tank with no strings. (yes - NO strings.) -- just so i could make it to work until payday!!!
ive always had problems like this - i cut up ALL my credit cards. i tried to leave them at home like people suggested, but i found i'd just come home and get them. i lack will power. hahaha
what i did this week is a bought all of my essentials. - food, etc...etc... and calculated money for gas and parking for the next 2 weeks and took it out in cash. (nothing like suddenly not having ANY money in the bank)
and then just trying be frugal with the rest.
any chance you could get a seperate bank account at a different bank and put 150 bucks in it every month or something like that? something to give yourself a little cushion?
I don't think leaving the card at home would be a great idea...I drive 20 minutes to school every morning and don't really want to be without it.
Maybe not allowing myself to use the card...I'm so glad I haven't gotten a credit card yet. I'd be in over my head. I'm pretty good with budgets. I do the grocery shopping in my house now, and I'm feeding at least 5 people every day on under $100 a week (At the begining of every month my mom puts $400 in an envelope for groceries, $200 for entertainment/misc, and $300 for gas.). See? I don't even have to buy my own gas! It's just limiting my personal flow that's become an issue. I feel so bad because there is NO reason for me to be spending this much!
I loooove ebay! good idea...but we'll see if I can part with my hoarde 'o crap. And I think that $100 a month will be plenty for spending money. I'll just take out the cash...and force myself not to use the card. I'll put a post-it on it or something with a nasty little note about me being broke...maybe wrap it up in my bank statement. Wrap it in duct tape.
I don't know where this falls on the addiction/habit line. I don't know that I believe in things like shopping addictions, sex addictions, so on and so forth. It's so subjective. But I do know that when I get upset the first thing I want to do is buy something. I mean, I will crave it like you might crave your favorite food or a glass of ice water when you're parched. If I haven't bought something new in a few days I can actually get kind of moody. Buying things or getting new things makes me happy. I mean, it's not the ONLY thing that makes me happy, I'm not pathetic, but it does give me a little thrill. Sometimes a big thrill.
I second (or third) the ebay suggestion. Go thru your purses, shoes, and accessories. If you haven't used them in the last six months, you're likely not going to. These are good things to sell and if they're in decent shape, probably there are other people going back to school who can use them.
In the future, try to think about a purchase for at least 3 days before making it (unless it's food, of course). But if it's a purse, ask yourself "am I carrying my stuff in a plastic grocery bag? No? Then I probably don't need the purse." If it's shoes, look down and if you're barefoot, buy the shoes. If not, reconsider. Try to make it a game of seeing how long you can go without buying something that you absolutely don't need to survive. You'll be surprised at how quickly it can add up!
Maybe set up two bank accounts. With online banking these days, it's very easy to manage. Budget your fun money in an account and only take that debit card out with you. When the money is gone for the month, it's gone. If there's any money left over at the end of the month, roll it into savings.
Why are you buying 3 DVDs at a time? Get a 20 dollar Netflix subscription. All the DVDs you want, no hassle. I only buy my absolute favorite films/tv show collections on DVD.
You say you don't have a credit card. This is actually an excellent time for you to get a credit card and establish good credit. American Express might be a good card for you, you are required to pay the balance off every month. There is a 25 dollar yearly fee (IIRC).
Being fiscally responsible is one of the greatest lessons you can learn.
I'm so glad I haven't gotten a credit card yet. I'd be in over my head... I do know that when I get upset the first thing I want to do is buy something... Buying things or getting new things makes me happy.
Quote:
Originally Posted by Glory87
This is actually an excellent time for you to get a credit card and establish good credit.
HO BOY! No offense, but I think this is the worst time for her to get a credit card.
Learning to be fiscally responsible is indeed a wonderful thing. But IMHO, she needs to get the $500+ fun spending per month under control FIRST before getting a credit card.
I shudder to imagine the bills otherwise... and the ensuing debt!
That's why I specifically mentioned American Express - it's more of a "charge" card than a credit card, the bill must be paid in full every month. I wish I had started with American Express and got into the habit of paying off the bill in full every month much earlier.
Good credit is so important for every future big purchase - car or a first home.
I'm broke. Bank Account Woes!
I know that if my mother saw my bank statement she'd flip...she's frugal (yet generous. She's probably given me more than $150 spending money just in August. Yeah, it's gone.). 
I take out £50 cash for the week, then I know when I'm running low - how much I have to last the week etc. Leave the cards at home!
Wrap it in duct tape. 
