Financial literacy for college students

Financial literacy for college students

Quite often, the phrase “poor student” is used not only during a failed session but more often – when talking about money. And the word “student” is used as one of the synonyms for “budget.” It is only necessary to mention the different dishes with the above-mentioned adjective – so we are talking about those where a minimum of ingredients are also inexpensive.

At the same time, young people have many tools and opportunities to improve their financial situation.

Don’t rely on your background too much

After leaving their parents’ home, many students try to adapt their financial behavior and habits from childhood to the realities of adulthood and independent living. This is often the wrong strategy because most adults, unfortunately, do not even talk to their children about finances.

Despite low income or complete financial dependence on parents, the student can still learn to manage money effectively. The main thing on the way is to understand and adjust your own financial habits.

Strive for financial independence

Students seeking complete financial independence often find work on the weekends or in the evenings. This is the right direction on the way to self-sufficiency. At the same time, you should not look for the first best part-time job and underestimate your own capabilities.

Keep in mind that you are still a future specialist in a certain specialty and may already have some knowledge that can be used at work. Also, try to develop your skills not only in higher education but also outside it – attend seminars or webinars, participate in training. This will help you find a higher-paying job.

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Don’t choose between earning and saving

Is it worth saving money when being a student or not? “Of course, you need to save and invest some money. Tip: don’t waste time. The retirement age reaches 60 years. If a student develops the habit of saving money and will do so for 40 years, he will become a multimillionaire, “- said businessman, investor, financial adviser, co-owner of several businesses Stanislav Hart.

A survey held in one of the colleges showed that out of 87 students, 67.4% save on household chores, and 76.1% save money on important personal expenses. It follows that the rest of the students who took part in the survey believe that there is no point in saving.

American hedge fund manager, entrepreneur, and writer James Althusher believes otherwise and shares his tips on how to manage finances in the online edition of “Business Insider.” “The most important thing is not to spend time-saving and saving. You will have more money in your bank account if you earn more. This is rule # 1. You never get rich by spending ten cents on every dollar.”

In our opinion, there is no need to choose. You have to do both. They strongly recommend saving 10% from the “body” of your earnings and at least 30% of bonuses and raises. So if you start earning $100 more, you save an extra $30 at least for a year. People tend to increase their expenditures instead of saving when they start receiving just a little more money. Many studies show that when you start receiving an extra $100, you start spending an extra $120.

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Focus on your career from the very beginning

Of course, modern student life includes new acquaintances, gatherings with friends, studies, and sessions. In addition, young people need to establish useful business contacts and develop in the practical aspects of their future profession. How to do it? Try to find a vacancy in the first year of study.

At first, it may be the work of an assistant or assistant who is not highly paid. However, this approach will initially give you the opportunity to learn the inner cuisine of your future profession and gain the necessary experience that you can effectively apply in the future.

It may seem like a bit of a stretch because even without an intense social life, you have enough assignments to focus on. It feels like there is no way you will have time to work. Here, you need to make a decision about what matters more to you now. Of course, you should not miss the deadlines, and you should submit quality papers.

However, you can combine it with some beginner’s job if you delegate some of your essays online to Write My Paper Hub — a professional service just like yours that helps students around the globe with their writing papers. Yes, they don’t do it for free, but delegating some tasks spares you enough time to start building a career and earning enough money for such services, as well as savings.

Work on your financial discipline

Every student should plan their budget, at least in order to understand where their money is spent and whether it is not wasted. Special programs that can be installed on a smartphone can help you plan your own funds.

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Using such programs will greatly facilitate the process of planning and calculating money because you do not have to invent anything yourself. You just have to remember to pay all the costs to make the program really effective. However, the survey shows that only 8.7% of students plan their budget with the help of Internet resources, 80.4% plan independently, and the rest do not plan at all.

In this article, we deliberately didn’t touch on student loans and credit card issues because those are separate complex topics. In short — be kind to your credit card, and then it will be kind to you. When you spend money using a credit card, it feels like you spend someone else’s money, but once you need to pay — you give your own money away. Reduce the number of emotional purchases and don’t try to impress anyone purchasing stuff you cannot afford — in the end, no one cares, except for your bank. Start working as early as you can and save money with every raise, even the smallest one.

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