Beyond the shadow of any doubt, finances are one of the inevitable aspects of human life. For some, it starts from homeschooling and nourishes in college. On the other hand, some struggle to understand the complexities of finances throughout their entire life. The truth is the earlier you develop a firm grip on finances, the better your later life will be.
According to a Harvard research, 45% of American schools do not teach college students the functionalities of finances. Once these college students graduate, they face enormous difficulties in tackling real-life finances and lag behind in the fast-growing world. To overcome that, The Students Wellness Center offers a Financial Wellness Program – a course that teaches the students all the ins and out of finances. Similarly, this program prepares college students for real life.
Here are 4 financial tips that every college student should know before graduating:
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Learn the Functionality of Money
Perhaps the toughest part of managing finances is to understand the functionality of money. This means one should know how money works. As the saying goes: Those who understand money make it work for them. And those who don’t understand money work for money throughout their lives.
So, educate yourself about the functionality of money. Consequently, it will help you in achieving financial independence as you age.
2. Credit Card Does not Give you Free Money
For inexperienced users, like college students, a credit card may bring a juxtaposition of excitement and anxiety. New credit card users may be over the moon as they get credit using their cards. However, they need to understand that they do not get free money through their credit cards. Rather, it is a loan that they will have to pay back.
So, as a college student, be wise with your credit card. However, you might be a new user but use it wisely by keeping your future in mind.
3. Be Realistic With Your Budget
This is the most ignored financial tip. In order to be financially stable, one must be realistic with his budget. Meaning one must not spend more than what he earns. Budgeting helps in developing stubborn control over your earnings and expenses.
Nonetheless, there are certain tricks that you can use for budgeting. Piggy banking, using a detailed spreadsheet of your income and monthly bills, and using an app are some of them.
4. Discounts do not Mean to Emabarras you
Some college students may feel that asking for discounts degrade them, thinking they will be embarrassed among their peers. On top of that, these students think a little discount won’t give them much. So, they better quit discounts.
Well, it is these tiny savings that add up to your savings as you age. There is no embarrassment in asking for a 10% or 15% discount. Discounts are meant to assist you as a potential customer of those businesses.
So, make the most out of such perks, sales, and discounts. No matter how much tiny, let that be a constant addition to your savings.