How to Manage Your Money: Tips for Students
Due to the lack of financial experience, college students make a number of money mistakes. Some of them are minor, while others can cause serious difficulties. We know that you’re only beginning to live your life and have to learn many things. For this reason, we made this list of the tips for college students that may help avoid common mistakes.
Common financial mistakes made by college students
- Credit Card Debt. We use credit cards all the time today, often forgetting about their drawbacks. Some of them allow you to spend more money than you have, thus putting you into debt. Moreover, many credit cards offer unfavorable terms and high percent rates. If you don’t want to end up paying for your credit card for 10 years, use it wisely. Pay off your balance in full every month.
- Credit History Damage. If you increase your debt and refuse to pay it for any reasons, you spoil your credit history. Remember that every missed payment will remain in your credit history for 7 years. Consider this fact and don’t be careless about your finances.
- Lack of Budgeting. You need to have a budget in college to learn to create it in your adult life. It will help you establish a more serious relationship with money in the future. Learn to stop spending money on useless stuff now. Analyze your income, as well as your expenses. It will help you avoid the problems from the points 1 and 2.
- Inappropriate Loans. It’s okay if you take loans to pay for tuition. However, you shouldn’t spend it on buying some other stuff you don’t need for school. Remember that loan money isn’t for funding a spring break trip to Haiti or purchasing new expensive clothes. If you spend your loan money thoughtlessly, you’ll have hard times giving it back. So, spend it only on your education.
- Expensive College. The prestigious name of a college doesn’t always matter as much as you think. You can get a decent education and become a great specialist even if you go to medium-level college. In the meantime, there are countless Harvard alumni who know nothing. It all depends on your own efforts.
Using these tips will be extremely helpful for you in the long run. Use them and gain your financial wisdom today!