Do You Need A Financial Advisor?

Top Financial Mistakes Made by College Students

Top Financial Mistakes Made by College Students

1. Blowing your school loan cash! Instead of using your financial assistance for books, tuition, space & board, lots of students will choose to fund their lavish way of living of partying, clothing, gadgets, and dining in a restaurant. These school loans you’ve worked so hard to obtain should be paying for your education, not you social life … so use the cash sensibly. You’ll be paying them off for many years to come.

2. Charge card Financial obligation!
Even liable adults can acquire some substantial charge card debt, but students, who have no viable income besides their school loan cash, and what cash mama & dad give them, have no company getting numerous credit cards. This is a recipe for credit disaster, since now students will not only have their school loans to pay back when they graduate, but large credit card balances. Nellie May, the biggest student loan maker, says that a lot of graduate students have approximately $5800 in credit card debt.

3. Not Paying Your Bills on Time!
Acquiring big credit debt and not paying your expenses on time is an excellent way to guarantee that you can’t acquire a vehicle, rent a house and even get a mobile phone after you finish. Keep the credit cards to a minimum, and pay your costs on time to keep your excellent credit score. You’ll thank yourself in a few years.

4. Bad Budgeting!
Being a college student generally indicates living on a fixed earnings. Weather it be your financial assistance money or money from a part-time job, or even cash from Mother & Daddy, the cash is generally limited and setting up a budget plan is essential. A month-to-month budget does not imply you can’t do the things you want to do, however simply a plan so you know the “must-pays” really make money. Figure out exactly what bills and expenses you have on a monthly basis and plan for those first. Any money after that you can budget for social/ leisure products like CD’s and kegs.

5. Going to a College that’s too Costly!
Instead of going to your local community college for your pre-req classes and spending $25 a device, lots of students feel they have to go to the 4 year university directly out of high school. Numerous wind up returning home and going to a C.C. anyhow, however going to a regional school first is a good way to save cash, and get those required classes out of the way low-cost. After you’ve completed these courses, transfer to a 4 year school to finish your bachelor’s degree. This will save thousands upon thousands of dollars that you would have acquired on student loans, and been settling well into your 30’s.

Many of the bad financial decisions students make is a result of poor financial education. Students have not been taught by their moms and dads or high school instructors the importance of maintaining a good credit score, paying costs on time, and budgeting income. Wise spending during the college years will certainly ensure that the money you make after graduating will certainly be invested in things you desire, not credit card payments, collection business and school loans.

Leave a Comment

Your email address will not be published. Required fields are marked *

Choose a Rating