Key financial mistakes made by college students

Key financial mistakes made by college students

1. Blowing your student loan money!Select Instead of using financial aid for books, tuition, room and board, many students to fund their extravagant party lifestyle, clothes, gadgets and eating out. Getting this school loans that have worked so hard to pay for their education, social life ... and then wisely with the money. You have to come for many years to pay.

2. credit card debt!
Even responsible adults can high debt from credit cards, but students who have to give no income outside possible money to school accumulate and that mom and dad money they were getting something. For several credit cards This is a recipe for disaster loan because now students are paying not only on your student loans when they graduate, but large credit card balances. Nellie May, the largest manufacturer of student loans, says that most students have an average of $ 5.800 in credit card debt.

3. their bills do not pay on time!
Accumulation large credit card debt and not pay your bills on time is a good way to ensure that you do not buy a car, rent an apartment or even a cell phone after graduation. Keep personal credit cards to a minimum, and pay your bills on time to keep your good credit. You find yourself thanking in a few years.

4. bad ratio!
As a student usually means living on a fixed income. Whether your financial aid money or money from a part or even Mom and Dad money, time is money is usually limited and the establishment of a budget is important. A monthly budget does not mean you can not get the things you want to do to do, but simply a plan, if the "must-pay" actually pay, is known. Understanding exactly what bills and expenses on a monthly basis and plan for the former. After all the money you can budget for social / recreational equipment such as CD and drums.

5. Go to a university that is too expensive!
Instead of going to your local college for your prerequisite classes and spend $ 25 per unit, many students feel they have to go to college four years directly out of high school. Many end up back home and go to a CC anyway, but first visit a local school is a good way to save money, and get the required classes in the cheapest way. After completion of these courses to transfer a school four years to complete their studies. This will save you thousands of dollars that have accumulated in the school loans and was well paid in their 30s.

So many students make poor financial decisions is the result of poor financial literacy. Students were not taught by their parents or teachers about the importance of conservation of credit score, pay bills on time and budget revenues. Wise spending during the college years is to ensure that the money you after getting focus on the things that you earn, you can not pay by credit card companies, loan and school.

Hopefully the article "Key financial mistakes made by college students" can be useful for you, the next article will discuss a personal loan with the theme "As a secured loan a custom installation for Borrowers in the UK has created a win-win for all", What do you think?