If you are a college student you certainly now the struggles of handling your finances. Once you enter adulthood you have to learn how to manage your money wisely all on your own, without parental guidance, it’s no wonder you make so many errors, and sadly every single decision you take in your youth can have serious effects later. This article will highlight 5 common financial mistakes college students make and how to correct them.
Mistake #1: Skipping loan payments
If you don’t want to get stuck paying more than you should, start making your loan payments early. If you’re responsible with your payments your interest rates will lower meaning the overall costs will reduce. Even if you only pay the minimum monthly, you will be saving yourself a lot of money in the near by future.
Mistake #2: Spending without a budget
Once you graduate the more money you have, the better. Make a budget and keep track of your spending. If you have a student loan you already have enough debt as it is, so it’s really important that you prioritize your money, it might be hard to create sending limits but you will thank yourself in the future.
Mistake #3 Collecting credit card debt
Credit cards should be used only for “needs” and not “wants”, so don’t overspend. If you have a bad credit score than this will affect your financial health in the future. You need a good history score for things like car loans or bank loans.
Mistake #4 Failing classes
Classes are worth money; money you might not have. If you don’t take your classes seriously, stop studying and begin skipping, you will fail and when you fail a college class you have to take it again meaning you have to pay for it again.
Mistake #5 Using student loan money for anything besides college
Keeping up with college expenses is hard. If you are using your student loans for anything college related is fine, but using it for personal things will really hurt yourself when you graduate, paying of loans might seem easy but they are not!