Financial Tips For College Students

Financial Tips For College Students

Financial Tips For College Students
For many students, college is​ the first time they will face the world of​ credit card offers, bills, loan offers, spending temptations and budgets .​
In a​ small way, it​ really is​ a​ taste of​ the real world because the financial responsibilities lie solely with the student .​
With this new responsibility, many students have to​ make very important decisions on how they spend their money .​
Unfortunately, mistakes can easily be made without proper planning and budgeting .​

Common Money Mistakes
The common money mistakes most people make when they start out are not keeping track of​ expenses, being unaware of​ credit card purchases, spending all their money at​ one place at​ one time and bouncing checks.
Not Keeping Track Of Expenses: One of​ the most common mistakes people make with their finances is​ not keeping track of​ where their money goes when it​ is​ being spent .​
a​ typical scenario would be a​ college student using their debit card to​ purchase snack food items from the campus bookstore or​ convenience store .​
While using the debit card may be convenient and the cost of​ the items comes to​ 5 to​ 10 dollars, those dollars will add up if​ this transaction occurs every day .​
Being unaware of​ the amount spent, a​ student makes his usual trip one day and finds out that his card is​ declined .​
The student, in​ disbelief, wonders where all the money went to, so he goes to​ the ATM machine .​
Upon discovery, he finds out that his account has been overdrawn and that he spent a​ total of​ $200-$300 on snacks alone .​
This mistake is​ a​ very easy one to​ make with a​ lot of​ people due to​ the amount of​ the single purchases themselves .​
However, these small purchases do add up to​ a​ large amount of​ money of​ you are not careful.

Being Unaware Of Credit Card Purchases: Credit cards are very tricky things because they are a​ very quick and easy way to​ spend money that you do not have .​
The worst thing you can go is​ to​ use that credit card for each purchase they make; even if​ the purchase itself is​ a​ candy bar or​ a​ bag of​ chips .​
Just like your bank account, these expenses will also add up into big bucks including minimum monthly payments .​
In addition, your credit rating might be affected because credit cards also come with a​ credit limit and once those come close to, or​ reached, your credit score might become lower.

Spending All Their Money At One Place At One Time: If all the money is​ spent at​ the beginning of​ the semester, them there might not be enough for when you need it​ in​ the middle or​ the end of​ the term .​

Bouncing Checks: Basically, bouncing a​ check means that you write one for more money than you have in​ your checking account .​
These checks will result in​ what is​ called an​ overdraft .​
Banks will charge anywhere between $20-$30 or​ possibly more for each check written that is​ more than the account to​ cover the expense, which would add up to​ quite a​ bit .​
Unfortunately, other banks may hear about your overdraft history and might refuse to​ give you an​ account.

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