Financial Mistakes Made by College Students

Here is a list of financial mistakes college students should avoid in order to maintain a good credit standing:

Financial Mistakes

 

Blowing your school loan money.

Instead of using your financial aid for books, tuition, room & board, many students will choose to finance their extravagant lifestyle of partying, clothes, gadgets, and eating out. These school loans you’ve worked so hard to get should be paying for your education, so use the money wisely. You’ll be paying them off for many years to come.

Credit Card Debt.

Even responsible adults can rack up some hefty credit card debt, but students, who have no viable income besides their school loan money, and what cash mom & dad give them, have no business getting multiple credit cards. This is a recipe for credit disaster because now students will not only have their school loans to repay when they graduate but large credit card balances.

Not Paying Your Bills on Time.

Not paying your bills on time is a good way to ensure that you can’t purchase a car, rent an apartment or even get a cell phone after you graduate. Keep the credit cards to a minimum, and pay your bills on time to keep your good credit rating. You’ll thank yourself in a few years.

You may also read: Money Management

Bad Budgeting.

Being a college student generally, means living on a fixed income. Whether it be your financial aid money or money from a part-time job, or even money from Mom & Dad, the cash is usually limited and setting up a budget is important. Figure out exactly what bills and expenses you have every month and plan for those first. Any money after that you can budget for social/recreational items like CDs and kegs.

So many of the bad financial decisions students make is a result of poor financial education. Students haven’t been taught by their parents the importance of personal finance. Wise spending during the college years will ensure a healthy personal finance in the future