College students should avoid making these money mistakes
College life in itself means the right blend of hardship and fun. At the threshold of college life, everything looks cool, however, in due course of time, things get a bit tough. And, it’s obvious, seeing the age level of students who are in that stage of life where the world projects itself as a fictional story of fun and enjoyment.
It looks fine until one fine day college students realize that they are running out of money and the burden of debts is mounting like a heap of ants on some piece of sweet. This is where it gets take serious, leaving no other options for them but regret and backlogs, making life stressful.
Before, it gets worse, we are here to warn you with some of the biggest money mistakes college students make, and should stop it sooner:
Credit Cards: A devil in disguise
Life seems unimaginable without credit cards. It would not be wrong to say the credit cards become a life supporting element and stands next to oxygen. No wonder, credit cards have made life easier as it allows you to fulfill your dreams with limited financial budget. In cases of emergency it works no less than medicine. However, using credit cards to do careless shopping that exceed your financial limitations can backfire as well. Many cards have high interest rates, and many hidden terms and conditions that put you in the back-foot. Generally, what happens is, you keeping on paying the minimum payment each month, letting the bill to rise for the next 10 years.
Therefore, use credit cards judiciously and know your limitations before using a credit card. If you use credit cards smartly, you will not only make your life easier but also add to your credit score, which is a bonus to get loans in future.
Lack of financial planning
You may be wrong in thinking that budgeting and financial planning during college is nothing but a complete waste of time. Financial planning is as important as preparing for the exams. It is only through a proper budget planning, you can manage your finances in a smart way. Therefore, if want to always stay financially strong during your college days, make sure to manage your expenses judiciously. It will be better if you prepare a monthly budget plan, and spend according to that. This will give you a fair idea of how well you are spending money and subsequently you will be able to know your financial imitations.
The illusion of expensive colleges
The adrenaline rush in students during their college days is too high as they are in the threshold of adolescence. Everything that has a string of adventure and glamour attached to it lures college students to fullest. Therefore, in this process, they become over-ambitious and want to join an expensive college where they think life will be like a fairytale. Meanwhile, they overlook certain things like the courses and curriculum a college of a certain kind offers.
As studying in an expensive college ends up in taking huge educational loan, which backfire students in the future. Therefore, be sure of your career goals and remember the fact that there’s no relationship between an expensive and a good college.
If you keep the aforementioned points in mind and act mature during your college days, your finances and life, both will be in the right direction, for sure.
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