3 of the Biggest Financial Mistakes You May Be Making as a Student
Strive to avoid these financial mistakes that will follow you into life after college.
It is not uncommon for college students to make mistakes while in such a transitional period of life. Many students make mistakes with short‐tern consequences, such as dorm infractions or drinking tickets. But some mistakes will follow you into adult life, such as financial mistakes.
Here are some of the biggest financial mistakes you can make in college, and how you can avoid them.
- Not Keeping a Budget Keeping a budget in the midst of keeping track of homework assignments and pushing through essays and keeping up with social life can prove to be difficult. Budgeting often falls on the back burner and money is blown on takeout and parties.
Unfortunately, the habits you develop in college can follow you into adult life, which is why it is a good idea to start budgeting now. Start out by tracking your expenses for a few weeks to see what you are spending money on the most and start establishing financial boundaries for each category. And stick to those boundaries.
- Not Paying Toward Your Loan While In School Many students wait until they graduate to start paying off student loans, but did you know you can actually begin paying them while you are in school still? Even if you only pay $50 a month, you can literally save hundreds of dollars in interest in the long run.
Can't afford $50 a month? That is okay. Start paying back your loans as soon as you can, even if it is only $15 a month. You will be developing good habits of repayment that will follow you to life after graduation.
- Giving In to Peer Pressure Many students face peer pressure in college to live the good life. Some of your friends may seem to have endless amounts of money in their bank accounts, wanting to spend all of their free time shopping or going out to eat.
Although it may be tempting to put off the stress of adult life until after graduation and to just give in for now, you may face long‐term financial consequences. Learn to strike a balance between enjoying life and staying responsible.
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