With the soaring tuition fees and debts, student finance has ceased to be as simple as it was before. Most of the modern day college students are handling credit cards and have cars. So, it can well be said that they have already been introduced to the world of “adult finance” — characterized by loans, credit card bills, debts and insurance. This is the stage where you prepare yourself to achieve financial freedom in the near future. Personal finance money management becomes a priority. Stepping up your financial literacy becomes crucial to your success in this regard. Honing your money management skills is not only about “what you should do with your money” but also about “which mistakes you should avoid while managing your money.” Today, within the scope of this post we will be discussing primarily about a few costly financial mistakes which student keep on committing. Here is a primer.
Not discussing “money” with their parents
Many of the students are driven by the wrong notion that financial independence equates to indiscriminate spending. No! You might have been able to generate a source of income by doing some freelance work or part time jobs. Instead of spending that money on night-outs and lunches, you can seek advice from your parents regarding possible investment options. Your entrepreneur dad might as well have few unique money saving tips which can benefit you for a long time to come. After all, one of the key attributes of a good entrepreneur is to manage and channelize funds properly. Efficient businesses are adept at doing that. The holiday ecards for business remain a good example of how the corporate sector is running their promotional campaigns in a cost effective manner. Make sure you are not missing out on picking up a trick or two like this from your parents!
Mishandling student loans
Most of the students fail to realize that the student loans are meant to last a full term. However, the moment the cash-strapped students find money in their accounts, they tend to spend it in the first few weeks itself. Much of the money is spent on the brand new editions of costly books mentioned in the University leading lists handed out to students. Instead of spending a chunk of your money in brand new books you can cut the expenses there by:
- Buying books from seniors (those who are willing to sell their old books)
- Borrowing books from libraries
- Buying them at reduced prices from online stores
Treating student finance applications lightly
Students are often found committing several mistakes while applying for student finance. There are a few of the financing options that are based on the household income of the students. While you are applying online, you will be shown the basic amount you can qualify for. There is also a slider which displays the amount you can qualify for, at variant levels of household income. If you end up choosing the basic amount, you will actually be refusing to be assessed on the basis of your income. That definitely is a mistake. Students are also guilty of not filling up details properly and of not submitting the application on time.